A two per cent minimum wealth tax on billionaires has been proposed to G20 members by the chairman of the G20, Brazilian Finance Minister Fernando Haddad. Based on research from the EU Tax Observatory, he said the primary aim of the proposed tax would be to tackle rampant tax evasion.
This was the first time the G20 members had debated the issue of taxing billionaires. Brazil is expected to propose an official declaration at the next G20 meeting in July 2024.
According to the EU Tax Observatory's director, economist Gabriel Zucman, who was at the G20 meeting, the global effective tax rates on billionaires were equivalent to less than 0.5 per cent of their wealth. An additional $250 billion would be generated in tax if only the wealthiest 3000 people in the world paid a 2% tax on their wealth annually.
Mr Hadded said that international cooperation on tax evasion should make these individuals contribute to society and the planet's sustainable development. The proposals have support from French Finance Minister Bruno Le Maire.
The current Organization for Economic Co-operation and Development (OECD) Proposals for a minimum taxation of 15% on the profits of multinational companies, might have 135 countries agreeing with the measure, only 35 are currently implementing it and it has stumbled for ratification in the US Congress.
Useful guides on this topic
Corporate Criminal Offence: failure to prevent tax evasion toolkit
This is an interactive tool to determine 'At a glance' whether there has been an offence committed under the Criminal Finances Act (2017) in respect of a corporate failure to prevent the criminal facilitation of tax evasion.
Corporate Criminal Offence: failure to prevent tax evasion
A corporate offence of failure to prevent the criminal facilitation of tax evasion applies from 30 September 2017.
External links
EU Tax Observatory: Global Tax Evasion Report 2024
