Chapter 1 Introduction
Amy Lawton with Annette Morgan, David Massey and Donovan Castelyn
Tax education is a cornerstone of tax compliance. Previous studies have clearly linked education with how likely a taxpayer is to pay their taxes (and the right amount of tax).1 Research also shows that there is a disconnect between taxpayers understanding their tax obligations: in other words, levels of tax understanding are low.2 Beyond the objective interest of a state in improving tax compliance, and so increasing the revenues collected to fund public services, low levels of education can have devastating impacts on our taxpayers. Tax clinics have shown us that the most vulnerable taxpayers can face crippling tax debts as a result of not understanding their tax obligations.
Tax education has the potential, therefore, to change lives.
This book focuses on one element of tax education: clinical tax education (CTE). CTE builds on the rich and strong foundations of clinical legal education (CLE). It is difficult to define: ‘Treating a clinic as a cathedral – defining very narrowly what its architecture must look like, what resources and materials it must have available, who may enter and what activities must be conducted therein – is to discourage the maverick creative spark which is so often the very hallmark of CLE.’3
Instead, Bleasdale et al. refer to CLE as a bazaar: with stalls of different shapes and sizes; some stalls are there permanently while others pop up and pack away. This metaphor for CLE is apt as it recognises the many shapes of clinical education. This book adopts Bleasdale et al.’s approach to defining CTE as broadly as possible and by altering their two common denominators for the purposes of tax:4
1. The provision of a tax service (actual or simulated)
2. The participation of university students, acting under professional supervision where necessary.
It should be noted here that the tax profession is not regulated in the same way as the legal profession. There are therefore some practical differences between CLE and CTE. With that in mind, this book will present a range of different clinical tax projects with different designs. While most of the CTE projects discussed in this book help live clients (tax clinics), others do not, and some harness the power of public education.
Tax clinics within educational organisations (and particularly universities) are a new phenomenon worldwide. Notwithstanding that the USA commenced its Low-Income Taxpayer Clinic (LITC) regime in the mid-1970s, it was not until 2018 that Australia became the second country to start a national tax clinic programme, with other countries, such as the UK and Ireland, to follow soon after. Tax systems are unique to the jurisdiction, meaning that each tax system works slightly differently, with different rules and processes that taxpayers need to follow.
Despite these differences, we can find some common components needed to establish a CTE project as defined above. Those components include clinic design, funding (or wider resources), student participation, government, educational institutions’ involvement and ensuring compliance with the relevant regulations. We can also reflect on the prior experiences of others already working in CTE, to carry those experiences and lessons forward to future CTE projects.
This handbook builds on the success of The Clinical Legal Education Handbook to provide an international lens through which to analyse CTE. It should be read alongside The Clinical Legal Education Handbook, which provides a comprehensive checklist of what to consider when considering a clinic in a regulated profession (regardless of the UK-specific, legal context). This handbook provides a valuable resource, or a ‘how to’, for those contemplating a clinical tax project. However, this book also draws on original research by our contributors to consider wider themes around CTE.
In particular, this book explores the rationale behind tax clinics and the need for more CTE projects. It also explores the community-facing element that is common (although not necessary) in CTE, considering some of the benefits that such projects can have for taxpayers, tax law and tax policy. Student involvement is one of our common denominators in defining CTE, and the pedagogical research presented in this book analyses some of the benefits to student involvement in CTE. CTE environments can also provide the opportunity for further research into both our education practice and how our tax systems impact the most vulnerable taxpayers. Broader themes such as the impact of the COVID-19 pandemic can be seen throughout, providing an insight into the adaptability of CTE.
Overall, this handbook seeks to provide guidance on the introduction and delivery of CTE projects of all shapes and sizes. We are grateful for the collaborative efforts of law and taxation academics all over the world, who have contributed to this book, the first of its kind on CTE. In line with our broad approach to defining CTE, we wish to acknowledge that this handbook is to be used as guidance and does not present the only ways to incorporate CTE. A one-size-fits-all approach is neither appropriate nor desirable when considering how to innovate tax teaching in universities.
The handbook consists of four parts. Part I: The tax clinic; Part II: Tax clinics and our communities; Part III: Tax clinics and our students; and Part IV: Moving forwards. We hope that you find this handbook of value and it helps you with informed decisions in relation to offering tax clinical education within your educational organisations.
If you have bought this handbook as a physical copy, then the royalties are being donated to UK tax charity TaxAid UK. You can find out more about the work that this charity does in Chapter 4, where Tina Riches outlines common issues faced by low-income taxpayers in the UK.
1 Giulia Mascagni and Fabrizio Santoro, ‘What Is the Role of Taxpayer Education in Africa?’ (International Centre for Tax and Development, April 2018), <www.ictd.ac/publication/what-is-the-role-of-taxpayer-education-in-africa/> accessed 1 October 2022.
2 See Chapter 5 for further information. See, for example, Deloitte, ‘The Tax Education Gap: Majority of the UK Don’t Understand Personal Tax’ (2019), available at <www2.deloitte.com/uk/en/pages/press-releases/articles/the-tax-education-gap-majority-of-the-uk-dont-understand-personal-tax.html> accessed 1 October 2022.
3 Lydia Bleasdale et al., ‘Law Clinics: What, Why and How?’ in Linden Thomas and Nick Johnson (eds), The Clinical Legal Education Handbook (University of London Press, 2020), 8.
4 Ibid.