https://arab.news/6hjq3 RIO DE JANEIRO: The world’s 20 biggest economies (G20) agreed on Thursday to work together to ensure the ultra rich are effectively taxed, in a declaration that seeks a balance between national sovereignty and more cooperation on tax avoidance. The declaration, which will be published on Friday, was a priority for Brazil, chairing talks of the G20 this year, whose leader Luiz Inacio Lula, a former factory worker, was pushing to include the “billionaire tax” on the G20 agenda.
“With full respect to tax sovereignty, we will seek to engage cooperatively to ensure that ultra-high-net-worth individuals are effectively taxed,” the G20 tax declaration, seen by Reuters, said. “Cooperation could involve exchanging best practices, encouraging debates around tax principles, and devising anti-avoidance mechanisms, including addressing potentially harmful tax practices,” it said. Brazil has spurred discussion of a proposal to levy a 2 percent wealth tax on fortunes over $1 billion, raising estimated revenue of up to $250 billion annually from 3,000 individuals.
“What started today is a broader process that will require the participation of academia, scholars, and international organizations with experience and time, such as the OECD and the UN,” Finance Minister Fernando Haddad told reporters. Today, Brasil's Finance Minister Fernando Haddad announced a historic consensus at the G20 on international taxation, including the taxation of large fortun.