Why is education key to changing the relationship between the state and the public in relation to tax issues?

In a State founded on principles of social and democratic rule of law, paying taxes should be understood as an instrument for achieving public objectives. It should not be seen as merely a form of submission to the State or a necessary evil. It is a fundamental duty of every member of society who, as such, has a responsibility for its organisation and maintenance.

Introducing the view that paying taxes as a fundamental duty is not an easy task, particularly in countries where the shortcomings of the State are more evident. It requires efforts to simplify regulations and procedures and to provide citizens with practical instruments that allow them to comply with their tax obligations with ease. It also requires a change of approach from tax agencies and their representatives, who must be ready to promote the concept of taxes as a method of supporting citizenship.

Modern tax agencies have adopted this approach and have begun to include the principals and values of tax ethics in their strategic plans, presenting and consolidating the idea of tax compliance through continuous improvement and the design of tax education and assistance programmes, as well as launching and bolstering initiatives on transparency and increasing confidence.

It is time to strengthen the relationship between tax agencies and taxpayers, who need to have confidence in these institutions.

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“It is time to strengthen the relationship between tax agencies and taxpayers”

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Accounting and Tax Support Centres, designed by the Federal Revenue of Brazil, are an example of this new approach adopted by tax agencies. Can you tell us about them?

In 2011 the Federal Revenue (Brazil’s tax authority) launched a pioneering tax training project at universities aimed at raising awareness of tax ethics and social cohesion. The project was dubbed the Tax and Accounting Support Centres programme or NAF from its Brazilian name.

It is the universities themselves that set up these NAFs, usually in their Accounting and Foreign Trade departments, where, with the technical support of the Brazilian tax authority, they provide advice to tax payers on low incomes, small enterprises registered under the SIMPLE tax regime and individual micro-enterprises to help them with their tax and social security affairs.

The students who provide advice do so under the supervision of a professor and within the framework of a university professional placement process, which allows them to apply their knowledge whilst also strengthening the idea of fiscal citizenship.

As the project has evolved, it has shown that the role played by these centres in the tax education of future accountants may be just as important as the assistance provided to those on low incomes. Within this context, several educational initiatives have been created including tax study groups, guided visits to the Tax Authority offices, conferences and courses taught by Tax Authority specialists. As well as increasing the knowledge of students on fiscal affairs and training them to advise members of the public, these initiatives have also served promote debate with regard to the social purpose of taxation. By doing so, this encourages students to reflect on their future as professionals and social actors, helping to create citizens who are aware of their rights and duties in a process of social citizenship.

It is important to note that since this project began in 2011, on a very modest scale, the Accounting and Tax Support Centres have been widely extended throughout Brazil. They have gained visibility and have become a strategic project for the Brazilian Tax Authority, with the launch of 62 new NAFs in Brazil, plus others that are still in preliminary phases of cooperation with other universities.

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“EUROsociAL builds bridges, articulates common interests, coordinates actions and provides support to countries”

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What role does the EUROsociAL programme play in the exchange of experiences in this field among public administrations in Latin America?

I believe that the exchange of experiences among the different tax authorities of Latin America is a fundamental exercise for identifying initiatives and projects that can influence public policies and consolidate social cohesion in our countries.

The EUROsociAL programme recognises the projects carried out in certain countries and provides institutional support. Thanks to the programme’s reputation on the global stage, this support provides credibility to these projects and drives them forward at both national and international levels. That is exactly what happened in the case of the NAFs.

Another vital aspect is the network that EUROsociAL has created in Latin America, which has been essential for the expansion of NAFs in other countries in the region. The EUROsociAL II programme builds bridges, articulates and develops common interests, coordinates actions and provides support to country representatives, allowing them to forge new relationships to promote the exchange of experiences and opinions at a regional level, as well as creating a space for showcasing the activities carried out in each nation.

In short, EUROsociAL is especially helping to develop social cohesion in Latin America through international cooperation in the field of tax education.

What is the role of the Tax Education Network of the European Union, Latin America and the Caribbean?

The Tax Education Network of the European Union, Latin America and Caribbean, of which the Brazilian Tax Authority is a member and which will be officially presented in La Paz, Bolivia on 27th July, is an important space for dialogue that promotes the exchange of experiences, knowledge and good practice not only among participants but within the wider community.

In this context, I believe that the fact that values and citizenship in relation to tax and fiscal affairs will be debated on an international stage is fundamental and helps increase the maturity of democracies and the level of social cohesion.

Therefore, by wishing the network success I am reaffirming my conviction that, based on a joint approach from the different social actors, we can reach a new milestone in the development of tax education from a global perspective.