Background Qualitative Research with Tax Practitioners

Prepared for the:
Public Affairs Branch
Canada Revenue Agency
FINAL REPORT
February 2007
POR# 252-06
Contract # 4655870879

Prepared by:
Milward Brown

Le rapport complet en français sera fourni sur demande.

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Canada Revenue Agency
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media.relations@cra-arc.gc.ca

Executive summary

There were a number of key themes that emerged from this research with tax practitioners, including:

• Tax practitioners recognize the underground economy is a major problem but do not see any ‘quick fix' as long as society generally seems to condone it.
  
• Tax practitioners suggest that those who knowingly participate in the underground economy not only understand they are taking a risk, they believe it is a safe risk because they don't think many people get caught.
  
• Tax practitioners see themselves as the ‘keepers of compliance'. That is, they believe it is their role and obligation to ensure their clients are tax compliant. They believe their clients have retained them because they want to be compliant, partly because they are honest, and partly because they fear the repercussions to their businesses if they are not compliant.
  
• Tax practitioners themselves do not believe the CRA is doing enough to catch and prosecute those who are avoiding taxes, evading taxes or outright cheating.
  
• While they see a role for some education on the issue of compliance, they feel the issue is too big to be solved with a single piece of communications. There is no easy or quick fix to the problem.
  
• Tax practitioners clearly see a need for a long-term strategy that is designed to change the way people view the underground economy. That is, the strategy should be to reduce the acceptability of working for cash.
  
• If a communications approach is developed, they would like to see two key themes included. One theme or message would be informative and educational, and have as its objective ensuring that the target audience understands how to be compliant. The tone of this type of message should be friendly, helpful and non-threatening. The second theme would be to raise awareness of the fact that offenders are caught and punished, and the types of penalties that exist for non-compliance. It was suggested that the tone of this type of message be a little firmer, while maintaining a level of respect for small and medium-sized business.
  
• One of the suggestions was to raise awareness of the Voluntary Disclosure Program, as one way in which the CRA is prepared to work with business.
  
• Tax practitioners are not sure that written material is sufficient. They said a brochure would be acceptable, but probably not enough to fully communicate about the issue. Other channels of communication were suggested, including the CRA website and mass media. Some suggested that seminars or workshops would be a more effective way of communicating compliance issues because they would offer the opportunity for questions and discussion.
  
• There was little strong objection across the groups to tax practitioners being the conduit of information. However, few saw any real value in them handing out a brochure to their (compliant) clients. While they did not believe this action would hurt their relationship with their clients, they also did not believe their clients would pay much attention to the communications.
  
• Rather, the tax practitioners felt the real target is those who are non-compliant, and they felt the best way to reach them would be through a mass media campaign.
  
• It was also suggested that any communications should be targeted at both the buyers and the sellers of the goods and services being offered within the underground economy. That is, there is a need to reduce the acceptability of accepting goods and services for cash, as well as offering them.