International best practice in tax communications: Ernst and Young Research

3. Designing a strategy for effective taxpayer awareness

This chapter takes the insights and recommendations found in academic and professional literature and through examination of international examples and converts them into an approach that can be effectively implemented. The key activities for each area identified in the framework for approaching tax communication are set out below. This results in a detailed framework for taxpayer awareness communications.

3.1 Defining goals and understanding the existing landscape

The process of setting clear and defined goals and objectives is critical for driving effective tax communications. This may include:

• Transfer or conveying of information, e.g. rationale for policy change
• Two-way communication or feedback on specific issues, e.g. consultation
• Broad communication of specific or general tax concepts through an interactive method

The majority of literature is focused specific policy development or communication to increase compliance; however, broader engagement and facilitation objectives also achieve other objectives such as community consensus and support for tax measures and processes. Literature also points to the tension between expending finite government resources on responding to misinformation or corrections compared to broader and more proactive communication goals.

Understanding the existing landscape has various aspects:

• Mapping the existing government tax messages: Existing channels of government taxpayer messages, communications, campaigns and channels should be understood and mapped. Governments employ a variety of approaches to ensure comprehensive outreach and engagement. For example,
• Workshops and consultations with taxpayers are organised to gather insights into their educational needs and address specific tax-related issues. Attendance at these events is communicated through targeted invitations, leveraging tax administration data to identify and engage relevant sectors, including hard-to-reach groups.
• Traditional methods such as letters and SMS are used for regular communication, while social media platforms like Facebook, Twitter, LinkedIn, and Instagram facilitate targeted campaigns.
• Broader methods integrate tax issues into daily life through TV and local radio programs, newspaper and magazine articles, and themed events.
• Partnerships with trade bodies and professional groups enhance participation, while educational initiatives, including resources for schools, promote tax literacy.
• Specific approaches are employed to directly contact high-risk taxpayers, ensuring compliance and addressing concerns.
• Additionally, parliamentary statements and ministerial speeches play a vital role in conveying important tax messages and policy updates.

Understanding and mapping these pre-existing channels and communication strategies is essential for developing effective taxpayer messages, campaigns, and channels. It is important to consider them as a whole, ensuring that they are strategically aligned. Different channels will be more effective for different audiences and purposes, so mapping can help ensure that efforts and resources are targeted where they are most effective.

• Identifying the stakeholders: To effectively communicate tax policies, a government needs to clearly identify the stakeholders who are the target for communication. Mapping needs to encompass two specific groups of stakeholders:
• Who are the primary stakeholders for receiving the tax communication? This involves recognising specific sub-groups within the taxpayer population, which may include including hard-to-reach groups such as rural residents, non-English speakers, low-income individuals, those with disabilities and refugees or newcomers to the country. By analysing demographic data and taxpayer behaviour, a government can tailor its communication strategies to meet the preferences of different groups, whether they favour social media, email, traditional media, or community outreach programs.
• Who are the existing internal and external stakeholders that might be involved in delivering and shaping the tax communication? Partnerships with local governments, schools, universities, and community organisations can significantly increase awareness and trust. These partners can disseminate information through their established networks and trusted channels. Engaging with businesses, tax professionals, and industry associations can provide valuable feedback and help tailor messages to specific sectors.

3.2 Developing the message

To effectively communicate tax policies to taxpayers, a government could develop messages that prioritise clarity and transparency. This may involve using plain language, visual aids like infographics and videos, and concise summaries to simplify complex information. The message development process could be collaborative, involving tax experts, communication specialists, and taxpayer representatives, and may also include testing and feedback to ensure clarity and effectiveness.

When developing the message, consideration should be given to whether messages can be tailored to either a widespread audience or specific taxpayer groups, depending on the communication objectives. Tailored communication strategies can consider the characteristics of different taxpayer groups.

A government should decide whether the communication will be one-way or a two-way interactive process that incorporates taxpayer feedback. Further thought should be given to adhering to best practices, ethical guidelines, and safeguards to ensure that messages are truthful, transparent, and respectful of taxpayer rights. Positive framing and contextualisation of tax policies can enhance understanding and engagement. By focusing on these elements, a government can develop and deliver messages that enhance taxpayer understanding and awareness of tax policies, budget announcements, and their implications.

3.3 Communication channels and use of technology

Understanding the preferred channels of different taxpayer groups is crucial; for instance, younger taxpayers may favour social media and mobile apps, while other taxpayers might prefer traditional media and direct mail. Different sub-groups of taxpayers such as hard-to-reach groups may require different channels of communication. Additionally, a government can leverage existing communication avenues, such as official websites, newsletters, and public service announcements, to enhance the reach and effectiveness of tax information dissemination. By combining these insights and leveraging both digital and traditional platforms, a government can communicate tax messages to all taxpayer groups, enhancing awareness and engagement. The benefits and risks of using technology to communicate would also need to be considered.

Examples of channels that may be considered include:

• In person: workshops, roundtables, presentations, seminars etc.
• Virtual targeted communications: e.g. via SMS, phone call or tailored social media
• Traditional methods e.g. letters and posters

3.4 Resources and implementation plan

Effective allocation of resources, such as budget and personnel, is essential to support communication activities that foster transparency and trust between tax authorities and taxpayers. Designating a specific budget for communication initiatives ensures that there are adequate funds to develop, execute, and sustain these efforts. Additionally, assigning dedicated personnel with the requisite skills and expertise can enhance the quality and consistency of taxpayer communications. Prioritising communication initiatives based on their potential impact and feasibility is equally important.

This strategic approach would allow the Scottish Government to focus on high-impact activities that are achievable within the available resources, thereby maximising the return on investment. By systematically evaluating and prioritising initiatives, the Scottish Government can address the most pressing communication needs effectively, ensuring that taxpayers receive clear, accurate, and timely information. This could improve compliance and also enhances the overall taxpayer experience.

3.5 Governance, legal and ethical considerations

Governance, legal, and ethical considerations could be taken into account to ensure that the information communicated is clear, accurate, and respectful of taxpayers' rights. This may include providing accurate and up-to-date information to prevent misinformation and legal disputes and ensuring that communications are accessible to all taxpayers, including those with disabilities, by providing information in various formats (e.g., braille, large print, audio). Communications should comply with any accessibility standards and guidelines, not discriminate against any group of taxpayers, maintain a neutral tone and provide clear information about taxpayer rights.

3.6 Measurement and feedback

Measuring the impact of communication channels on taxpayer understanding and engagement is important to assess how well the communication has achieved its objective and reached its target audience. Measurement can involve key metrics and strategies. For example, to assess increased taxpayer understanding of the role of tax in society and its link to government spending and services, engagement metrics such as website traffic, social media interactions, event attendance, and enquiries related to communications on such matters. Incorporating taxpayer feedback through surveys, polls, and focus groups may ensure that communication strategies are responsive to taxpayer needs and preferences. Specific campaigns are evaluated based on their targeted objectives, while general public awareness campaigns focus on overall taxpayer understanding of tax policies. Continuous improvement is driven by regular updates to communication strategies, adaptive messaging, and ongoing research and evaluation. These efforts collectively enhance taxpayer awareness of the taxing roles of different government levels, the budget process, and upcoming tax changes or new obligations, ensuring that communication channels effectively support the objectives of increased understanding and engagement.

3.7 Building the right foundations

The processes mentioned above function most effectively when the right foundations have been established. At the core of this framework are several key underlying factors that create a solid base for effective communication. Addressing these factors is a critical step in enhancing the success of any communication and serve to foster a communication process that is structured, targeted, and responsive to the diverse needs of various taxpayer groups. These activities are part of the preparatory work to be carried out independently of any specific communication or tax awareness campaign. They include:

• Establish guidelines and processes for communications: Establishing clear and consistent guidelines that dictate the tone, style, and content of tax communications to ensure clarity and professionalism. Developing a standardised process for creating, reviewing, and disseminating tax-related information to streamline efforts and maintain quality control.
• Identify taxpayer groups: Segment the taxpayer population to tailor communications effectively, ensuring that messages resonate with different demographics and stakeholder groups. Conduct targeted research to understand the unique challenges and barriers faced by hard-to-reach populations, enabling the design of inclusive communication strategies.
• Map stakeholders, third parties and communication channels: Identify key stakeholders and third parties related to tax communication and awareness. Explore potential alternative channels and approaches to communication and consider partnerships with third parties to enhance outreach.
• Track opportunities for enhancing government communication: Develop a process to regularly monitor and evaluate existing communication strategies across government to identify opportunities for coordination and integration, as well as areas for improvement and innovation in outreach efforts.
• Establish a communications strategy: Develop a comprehensive communications strategy that considers the layout, approach, and tailoring of websites and online presence. Identify effective strategies for utilising digital media and online platforms, while clarifying the integration of digital, non-digital, and traditional communication channels. Incorporate taxpayer analysis into the strategy to ensure that communication efforts are relevant and resonate with the target audience.
• Improve communication through feedback: Establish a feedback loop to measure the effectiveness of communication efforts and incorporate research outcomes into ongoing improvements. This includes a process for tracking social media and searches to identify public attitudes toward tax, misinformation, and disinformation.