On Monday 18 November, at the G20 summit in Rio de Janeiro, Brazil, the leaders of the G20 member states pledged to cooperate on effective taxation of high-net-worth individuals.
“Progressive taxation is one of the key tools to reduce domestic inequalities, strengthen fiscal sustainability, foster budget consolidation, promote strong, sustainable, balanced, and inclusive growth and facilitate the achievement of the SDGs [Sustainable Development Goals]”, they stressed in their declaration.
“With full respect for tax sovereignty”, this cooperation could consist of “exchanging best practices, encouraging debates around tax principles, and devising antiavoidance mechanisms, including addressing potentially harmful tax practices”. They encourage the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) to consider working on these issues in the context of effective progressive tax policies.
Gabriel Zucman, economist and director of the European Tax Observatory, which produced a report on the taxation of large fortunes at the request of the Brazilian Presidency of the G20 (see EUROPE 13440/19, 13463/5), hailed this as a “historic decision”. “Now is the time to turn words into action and launch an inclusive international negotiation, extending beyond G20 countries, on the reform of the taxation of the super-rich”, he commented.
Read the G20 declaration: https://aeur.eu/f/ee7 (Original version in French by Anne Damiani)