Home Building Trust Through Transparency: The Path to a Fair and Accountable Tax System

Building Trust Through Transparency: The Path to a Fair and Accountable Tax System

In today’s world, transparency is more than just a buzzword – it is a critical component of good governance, especially regarding taxation. Tax transparency calls for the comprehensive disclosure of laws, regulations, strategies, procedures, and actions related to taxation. It involves a deliberate effort to provide all legally accessible information, whether positive or negative, in a manner that is accurate, impartial, timely, and clear. The primary goals of tax transparency are to enhance public understanding of tax policies and systems while ensuring organizations are held accountable for their decisions, policies, and practices.

Accountability and transparency are fundamental principles of good governance. A tax system that is both transparent and accountable starts with a clear declaration of its main goals and objectives. This should be followed by an explanation of the policy and administrative frameworks that guide the system, allowing for the performance of the tax system to be assessed in relation to its intended purpose. Governments are encouraged to release not only the tax goals and objectives but also the underlying intentions behind them regularly. This ensures that the public has the necessary information to evaluate whether the tax system is serving the public interest effectively.

In conclusion, tax transparency is essential for creating a fair and accountable tax system. When the public has a clear understanding of how the tax system operates, they are more likely to voluntarily comply with established laws, rules, and guidelines. This transparency not only builds trust but also encourages a greater sense of responsibility among taxpayers, greatly boosting voluntary compliance.

This material is intended solely for informational purposes and should not be relied upon without seeking specific professional advice on the matter. Should you have any questions regarding this topic, please feel free to contact our team at info@ke.andersen.com or +254 20 5100263.

 

Contributors & Contact Persons

Mark Njoroge

Legal & Tax Associate

mark.njoroge@ke.andersen.com

 

Marco Manyenze

Associate Director

marco.manyenze@ke.andersen.com

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