G20 agree to ensure super-rich effectively taxed

The G20 said yesterday that it agreed on working to ensure super-rich individuals around the world are effectively taxed, but stopped short of elaborating on methods, reported Anadolu Agency.

The group, which includes China, the EU, the US, and Japan, said it is important for all taxpayers, including ultra-high-net-worth individuals, to contribute their fair share in taxes.

“Aggressive tax avoidance or tax evasion of ultra-high-net-worth individuals can undermine the fairness of tax systems, which comes along with a reduced effectiveness of progressive taxation,” according to a G20 Ministerial Declaration on International Tax Cooperation.

“No one should be able to evade taxation, including by circumventing transparency standards. Therefore, greater efforts should be made to ensure full compliance with domestic tax obligations,” it added.

Despite the consensus on taxing the super-rich, mechanisms of achieving the goal remain vague.

“Each jurisdiction should work autonomously or, if necessary, through capacity-building initiatives to improve the effectiveness of revenue collection for taxes, which already today could be levied based on domestic law.

“Cooperation could involve exchanging best practices, encouraging debates around tax principles, and devising anti-avoidance mechanisms, including addressing potentially harmful tax practices,” said the group.

Member countries said they would continue to discuss the issues in the G20 and other relevant forums, counting on the technical input of relevant international organisations, academia, and experts.

- Bernama

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