FIRS PPM 3 Global Best Practices for Taxpayer Compliance -Prof Oyedokun.pptx

Training Session Organised by Peculiar People Management (PPM) for Staff of the Federal Inland Revenue Service Held at FIRS Training School, Agidingbi, Ikeja, Lagos on Friday, October 10, 2025.

1. Global Best Practices for Taxpayer Compliance: The Role of Effective Communication Prof. Godwin Emmanuel Oyedokun Professor of Accounting and Financial Development Department of Management & Accounting Faculty of Management and Social Sciences Lead City University, Ibadan, Nigeria Principal Partner; Oyedokun Godwin Emmanuel & Co (Accountants, Tax Practitioners & Forensic Auditors) Being a Training Session Organised by Peculiar People Management (PPM) for Staff of the Federal Inland Revenue Service Held at FIRS Training School, Agidingbi , Ikeja , Lagos on Friday, October 10, 2025.

2. ND (Fin), HND (Acct.), BSc. (Acct. Ed), BSc (Fin.), LLB., LLM, MBA (Acct. & Fin.), MSc. (Acct.), MSc. (Bus & Econs ), MSc. (Fin), MSc. ( Econs ), Ph.D. (Acct), Ph.D. (Fin), Ph.D. (FA), CICA, CFA, CFE, CIPFA, CPFA, CertIFR , ACS, ACIS, ACIArb , ACAMS, ABR, IPA, IFA, MNIM, FCA, FCTI, FCIB, FCNA, FCFIP, FCE, FERP, FFAR, FPD-CR, FSEAN, FNIOAIM, FCCrFA , FCCFI, FICA, FCECFI, JP Prof. Godwin Emmanuel Oyedokun Professor of Accounting and Financial Development Department of Management & Accounting Faculty of Management and Social Sciences Lead City University, Ibadan, Nigeria Principal Partner; Oyedokun Godwin Emmanuel & Co (Accountants, Tax Practitioners & Forensic Auditors)

3. Global Best Practices for Taxpayer Compliance: The Role of Effective Communication

4. Contents

5. Introduction Training Objectives Explore proven strategies for enhancing taxpayer compliance through strategic communication approaches worldwide National Development Understand how taxpayer compliance directly contributes to sustainable economic growth and public service delivery Communication Impact Discover the powerful connection between effective communication strategies and positive taxpayer behavior changes Global Context Learn why leading countries prioritize communication-centered compliance strategies for measurable results

6. Understanding Taxpayer Compliance Core Definition Taxpayer compliance encompasses three fundamental pillars: Timely filing of all required tax returns Accurate reporting of income and deductions Full payment of taxes due without delay Compliance Models Voluntary Compliance: Taxpayers willingly meet obligations through understanding and trust Enforced Compliance: Compliance achieved through deterrence and penalties Modern tax authorities blend both approaches for optimal results

7. Effective Communication and Compliance Behavior Influence Strategic communication shapes taxpayer attitudes, knowledge, and compliance decisions through targeted messaging Two-Way Dialogue Modern tax authorities foster interactive communication channels that allow feedback and ongoing engagement Trust Building Transparency and consistent communication establish credibility and reduce adversarial relationships with taxpayers

8. Global Best Practices in Communication – Principles of Effective Communication 1 Clarity and Simplicity Eliminate complex tax jargon and use plain language that all taxpayers can easily understand and act upon 2 Multi-Channel Accessibility Deploy diverse communication platforms: online portals, mobile apps, print materials , social media, and call centers 3 Cultural Sensitivity Adapt messaging to local languages, cultural norms, and literacy levels for maximum reach and effectiveness 4 Consistency and Timeliness Maintain uniform messaging across all channels while delivering information when taxpayers need it most

9. United Kingdom – HMRC Excellence Digital Innovation & Behavioral Science HMRC leverages cutting-edge behavioral insights and nudge theory to influence taxpayer behavior through strategic communication timing and messaging. Their personalized email and SMS campaigns deliver targeted messages based on individual taxpayer profiles and payment history. Proven Results: HMRC's behavioral letters increased tax collection by over 5%, demonstrating the power of psychology-informed communication Key Strategies Personalized digital messaging Behavioral psychology application Data-driven communication timing Social proof in messaging

10. Australia – ATO Leadership Community Education Comprehensive taxpayer education programs reach communities, schools, and businesses with practical tax knowledge and compliance support Self-Service Excellence Online platforms feature plain-language guides that empower taxpayers to complete filing independently with confidence Success Story: ATO's annual "Tax Time" campaigns simplify complex filing processes through clear, step-by-step communication that reduces errors and increases voluntary compliance.

11. United States – IRS Accessibility Physical Assistance Centers Strategically located taxpayer assistance centers provide face-to-face support for complex tax situations requiring personal guidance Multi-Lingual Channels Comprehensive communication in multiple languages ensures equitable access to tax information and services for diverse populations Free File Initiative Digital platform offering free tax preparation software with guided communication, significantly improving compliance rates among low-income taxpayers

12. Singapore – IRAS Innovation E-filing Paper filing Customer-Centric Excellence IRAS transforms tax administration through exceptional customer service and transparent communication about how tax revenue benefits society. Digital Leadership Advanced e-filing systems with comprehensive user support achieve remarkable 95% e-filing compliance , setting global standards.

13. Communication Strategies for FIRS Contextual Strategy Development Create taxpayer communication frameworks specifically aligned with Nigeria's unique cultural, linguistic, and economic landscape Technology Integration Deploy SMS, mobile apps, responsive websites, and AI chatbots to reach taxpayers through their preferred digital channels Targeted Segmentation Customize communication approaches for distinct taxpayer groups: SMEs, large corporations, and individual taxpayers with tailored messaging Continuous Improvement Establish robust feedback mechanisms through surveys, hotlines, and digital forms to continuously refine communication effectiveness Education Campaign Enhancement Strengthen comprehensive taxpayer education initiatives that build long-term compliance culture and understanding

14. Case Study One: HMRC United Kingdom: The Power of Behavioral Nudges 01 Identified the Problem Many taxpayers delayed payments despite having financial ability - the issue was procrastination and weak enforcement perception, not ignorance. 02 Applied Behavioral Insights Introduced "nudge" theory with personalized reminders: "9 out of 10 people in your town have already paid their taxes." 03 Simplified Communication Replaced technical jargon with plain language and tested multiple message versions to optimize results. 5-15% Payment Rate Increase Depending on message used 100% Improved Trust Through polite, encouraging communication Key Lesson for FIRS: Positive reinforcement works better than threats. Use messages like "most Nigerians like you have already paid their taxes" to build social proof and encourage compliance.

15. Case Study Two: ATO Australia: Community-Centered SME Support The Challenge Small and medium enterprises faced persistent non-compliance due to complex reporting requirements and low tax literacy across Australia's diverse business landscape. Strategic Response Regular outreach workshops with business associations Plain-language guides tailored for SMEs Online self-service tools with step-by-step instructions Dedicated Small Business Support Line for real-time assistance 25% Reduction in filing errors among SMEs in first two years Early Registration Many businesses began voluntarily registering for tax earlier FIRS Application: Nigeria's SMEs form a large economic segment requiring simplified guidance. Collaborating with trade unions and chambers of commerce for face-to-face education, plus dedicated SME support desks, would significantly reduce non-compliance.

16. Case Study Three : IRAS Singapore: Digital Excellence & Trust Building Problem Identified Manual filing systems caused delays, errors, and taxpayer frustration, making compliance burdensome and inefficient. Digital Solution Launched MyTax Portal with pre-filled forms, real-time chat support, and user-friendly interface design. Trust Campaign Explained how taxes fund public services - education, healthcare, and infrastructure improvements. 95% E-filing Adoption Within three years of launch Nigeria's Opportunity Enhanced online tax systems with mobile apps, pre-filled forms where possible, and clear communication linking taxes to tangible benefits like roads, electricity, and healthcare can dramatically improve compliance.

17. Case Study Four: IRS United States: Inclusive Taxpayer Services Multilingual Services Developed comprehensive taxpayer services in Spanish, Mandarin, Vietnamese, and other languages to serve diverse populations effectively. Free File Program Partnered with private companies to help low-income taxpayers file returns electronically at no cost, removing financial barriers. Assistance Centers Established nationwide Taxpayer Assistance Centers providing in-person support for complex situations and personal guidance. Critical Insight for Nigeria: With over 500 languages, Nigeria must provide taxpayer communication in major local languages - Yoruba, Hausa, Igbo, and Pidgin. Free filing support for low-income earners and community tax centers can bridge literacy gaps and build trust.

18. Case Study Five: Nigeria (JTB & FIRS) – Awareness Campaigns in the Informal Sector 1 Challenge Identification Africa's largest informal sector with millions outside the tax net due to ignorance, government distrust, and poor awareness of obligations. 2 Grassroots Campaign Nationwide awareness through radio, TV, roadshows using local languages and storytelling. Collaborated with market associations and transport unions. 3 Mobile Registration Promoted Tax Identification Number (TIN) registration using mobile units that brought services directly to communities. 2M+ New Registrations Between 2017-2020 Proven Success Formula Meet taxpayers where they are - in markets, motor parks, and community gatherings. Partner with trusted local organizations to build credibility and sustain campaigns for lasting behavioral change.

19. Universal Lessons from Global Best Practices Clear Communication Simple, behaviorally-targeted messages that resonate with taxpayer psychology and motivations Trust Building Equally important as enforcement - building relationships through transparency and consistent positive interactions Digital Solutions Technology simplifies compliance processes and reduces barriers to voluntary participation Education Focus Outreach and education reduce unintentional non-compliance more effectively than penalties alone Cultural Sensitivity Multilingual and culturally appropriate communication increases inclusivity and understanding Strategic Partnerships Collaboration with business associations, unions, and private companies amplifies reach and credibility

20. Interactive Learning: Practice Scenarios Scenario 1: Confused Taxpayer Practice handling a taxpayer confused about late filing penalties. Focus on clarity, empathy, and providing step-by-step guidance to resolve their concerns. Scenario 2: SME Tax Reforms Communicate complex tax reforms to small businesses using plain language. Transform technical jargon into actionable insights SME owners can understand. Scenario 3: SMS Campaign Design Create compelling SMS reminders for tax deadlines. Practice crafting messages that motivate action while maintaining professional, encouraging tone. Learning Objective: Develop practical communication skills emphasizing clarity, empathy, and persuasion. Each scenario builds confidence in real-world taxpayer interactions.

21. Challenges and Opportunities for FIRS Current Challenges Low Literacy Levels Significant portion of population requires simplified, visual communication approaches Digital Divide Uneven access to technology limits digital-first strategies in rural areas Trust Deficit Skepticism about government spending effectiveness impacts voluntary compliance Legal Complexity Complex tax laws create confusion and unintentional non-compliance Emerging Opportunities Digital Platform Expansion Mobile-first solutions can leapfrog traditional barriers with smartphone penetration Public-Private Collaboration Partner with fintech companies, telecom providers, and business associations Enhanced Taxpayer Services Invest in multilingual support, community centers, and simplified processes Behavioral Insights Apply proven nudge techniques adapted to Nigerian cultural context

22. Transforming Taxpayer Communication: Your Action Plan 01 Embrace Global Lessons Behavioral insights, digital solutions, and trust-building strategies from HMRC, ATO, IRAS, and IRS provide proven roadmaps for success. 02 Apply Core Principles Practice clarity in all communications, show empathy toward taxpayer challenges, maintain consistency across all touchpoints, and drive innovation in service delivery. 03 Commit to Excellence Dedicate to continuous improvement in taxpayer communication, measuring success through compliance rates, satisfaction scores, and voluntary participation. Immediate Actions Start with simplified language, behavioral messaging, and multilingual support for high-impact quick wins. Long-term Vision Build comprehensive digital ecosystem with community partnerships and data-driven insights for sustainable compliance growth. Together, we transform compliance through communication

23. Prof. Godwin Emmanuel Oyedokun Professor of Accounting & Financial Development Lead City University, Ibadan, Nigeria Principal Partner; Oyedokun Godwin Emmanuel & Co (Accountants, Tax Practitioners & Forensic Auditors) [email protected]; [email protected] [phone] & 2348055863944