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 per cent wealth tax on fortunes over $1bn, raising estimated revenue of up to $250bn 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 fortunes. 💼💰 The agreement was reached du.