G20 AGREES ON FAIR TAXATION FOR SUPER-RICH BUT LACKS SPECIFICS

Sat 27 July 2024:

The G20 announced on Friday that the group has agreed to work towards ensuring that super-rich individuals around the world are effectively taxed, though specific methods were not detailed.

Commitment to Fair Taxation

The group emphasized the importance of all taxpayers, including ultra-high-net-worth individuals, contributing 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.

Emphasis on Compliance

“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,” the declaration added.

Vague Mechanisms

Despite reaching a consensus on taxing the super-rich, the mechanisms to achieve this goal remain unclear.

“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,” said the group.

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

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Ongoing Discussions

Member countries stated they would continue to discuss these issues in the G20 and other relevant forums, relying on the technical input of international organizations, academia, and experts.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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