The European Union (EU) Tax Observatory has proposed in its report that a global minimum tax should be imposed on ultra-wealthy individuals to deter international tax evasion.

There are an estimated 2,500 billionaires with a combined wealth of $13 trillion.

The study by the observatory, part of the Paris School of Economics, states that if the governments start levying 2 per cent tax on billionaires, around $250 billion can be raised in a year.

<h2>Super-rich use loopholes to avoid paying taxes</h2>

The report says that the super-rich have been able to successfully use complex business structures for offshore tax evasion, while most people end up paying the taxes.

The research states that the automatic sharing of the wealthy's account information across more than 100 countries can significantly reduce offshore tax evasion.

The report said that billionaires avoid paying tax rates equal to 0 per cent or 0.5 per cent of their wealth "due to the frequent use of shell companies to avoid income taxation".

The study did highlight the agreement reached by 140 countries in 2021 to ensure companies pay at least 15 per cent in corporation tax, but the initiative, it said, had been "dramatically weakened" since then by a "growing list of loopholes".

<h2>Imposing tax can bring parity&nbsp;</h2>

Joseph Stiglitz, the Nobel Prize-winning American economist, in an introduction to the report, warned that unfairness in taxation poses a risk to democracy, reports BBC.

"If citizens don't believe that everyone is paying their fair share of taxes - and especially if they see the rich and rich corporations not paying their fair share - then they will begin to reject taxation.

Also read |&nbsp;<a href="https://www.wionews.com/world/german-diplomat-slammed-for-inspiring-hamas-to-launch-paragliding-style-attack-against-israel-650455">German diplomat slammed for ‘inspiring’ Hamas to launch paragliding-style attack against Israel</a>

"Why should they hand over their hard-earned money when the wealthy don't? This glaring tax disparity undermines the proper functioning of our democracy; it deepens inequality, weakens trust in our institutions, and erodes the social contract."

Quentin Parrinello, a senior policy adviser at the EU Tax Observatory, told the BBC that global billionaires "structure their wealth so it does not generate a lot of taxable income".

Also read |&nbsp;&nbsp;<a href="https://www.wionews.com/world/a-family-destroyed-16-year-old-british-teen-noiya-sharabi-confirmed-dead-in-tragic-hamas-attack-650157">A family destroyed: UK girl Noiya Sharabi confirmed dead in Hamas attack along with mom, sister</a>

He admitted that imposing a 2 per cent tax on billionaires may sound “utopian”, but "so was the idea of asking Swiss banks to exchange tax information with tax authorities 10 years ago and now this is a central provision of the fight against tax evasion".

(With inputs from agencies)

The European Union (EU) Tax Observatory has proposed in its report that a global minimum tax should be imposed on ultra-wealthy individuals to deter international tax evasion.

The European Union (EU) Tax Observatory has proposed in its report that a global minimum tax should be imposed on ultra-wealthy individuals to deter international tax evasion. There are an estimated 2,500 billionaires with a combined wealth of $13 trillion. The study by the observatory, part of the Paris School of Economics, states that if the governments start levying 2 per cent tax on billionaires, around $250 billion can be raised in a year. Super-rich use loopholes to avoid paying taxes The report says that the super-rich have been able to successfully use complex business structures for offshore tax evasion, while most people end up paying the taxes. The research states that the automatic sharing of the wealthy's account information across more than 100 countries can significantly reduce offshore tax evasion. The report said that billionaires avoid paying tax rates equal to 0 per cent or 0.5 per cent of their wealth "due to the frequent use of shell companies to avoid income taxation". The study did highlight the agreement reached by 140 countries in 2021 to ensure companies pay at least 15 per cent in corporation tax, but the initiative, it said, had been "dramatically weakened" since then by a "growing list of loopholes". Imposing tax can bring parity Joseph Stiglitz, the Nobel Prize-winning American economist, in an introduction to the report, warned that unfairness in taxation poses a risk to democracy, reports BBC. "If citizens don't believe that everyone is paying their fair share of taxes - and especially if they see the rich and rich corporations not paying their fair share - then they will begin to reject taxation. Also read | German diplomat slammed for ‘inspiring’ Hamas to launch paragliding-style attack against Israel "Why should they hand over their hard-earned money when the wealthy don't? This glaring tax disparity undermines the proper functioning of our democracy; it deepens inequality, weakens trust in our institutions, and erodes the social contract." Quentin Parrinello, a senior policy adviser at the EU Tax Observatory, told the BBC that global billionaires "structure their wealth so it does not generate a lot of taxable income". Also read | A family destroyed: UK girl Noiya Sharabi confirmed dead in Hamas attack along with mom, sister He admitted that imposing a 2 per cent tax on billionaires may sound “utopian”, but "so was the idea of asking Swiss banks to exchange tax information with tax authorities 10 years ago and now this is a central provision of the fight against tax evasion". (With inputs from agencies)

Impose 2% tax on super-rich to combat tax evasion, bring parity: EU Tax Observatory

Describing themselves as "Millionaires for Humanity", a group of 80 millionaires urged governments around the world to tax the super-wealthy a lot more so that recovery from the coronavirus can be found.&nbsp;

The group, which included people like filmmaker Abigail Disney, screenwriter Richard Curtis, and &nbsp;Ben and Jerry's ice cream co-founder Jerry Greenfield, wrote an open letter, saying they should be taxed higher, "immediately, substantially, permanently".&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/india-news/no-coronavirus-tax-on-the-super-rich-in-india-294928">No coronavirus tax on the super rich in India</a>

The letter said as the world is fighting coronavirus crisis "millionaires like us have a critical role to play in healing our world".&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/europe-threatens-digital-taxes-without-global-deal-after-us-quits-talks-306832">Europe threatens digital taxes without global deal, after US quits talks</a>

It further said they are not treating the sick suffering from the deadly virus and not restocking groceries in the supermarkets.

"But we do have money, lots of it. Money that is desperately needed now and will continue to be needed in the years ahead, as our world recovers from this crisis," the letter adds.&nbsp;

US entrepreneur Sidney Topol and New Zealand retailer Stephen Tindall were also among the signatories.&nbsp;

The letter was published before the upcoming meeting of G20 finance ministers.

It comes at a time when many experts have already spoken on the idea of taxing the wealthy to deal with the crisis.&nbsp;

In Britain, the Institute of Fiscal Studies think-tank has said higher taxes are required for several people, not just the super-rich.&nbsp;

Earlier, Spanish and Russian governments have also indicated that such taxes would be imposed.&nbsp;

Various groups including Oxfam, Tax Justice UK, and the Patriotic Millionaires came together to pen this letter.&nbsp;

Describing themselves as "Millionaires for Humanity", a group of 80 millionaires urged governments around the world to tax the super-wealthy a lot more so that recovery from the coronavirus can be found.

Describing themselves as "Millionaires for Humanity", a group of 80 millionaires urged governments around the world to tax the super-wealthy a lot more so that recovery from the coronavirus can be found. The group, which included people like filmmaker Abigail Disney, screenwriter Richard Curtis, and Ben and Jerry's ice cream co-founder Jerry Greenfield, wrote an open letter, saying they should be taxed higher, "immediately, substantially, permanently". Also read | No coronavirus tax on the super rich in India The letter said as the world is fighting coronavirus crisis "millionaires like us have a critical role to play in healing our world". Also read | Europe threatens digital taxes without global deal, after US quits talks It further said they are not treating the sick suffering from the deadly virus and not restocking groceries in the supermarkets. "But we do have money, lots of it. Money that is desperately needed now and will continue to be needed in the years ahead, as our world recovers from this crisis," the letter adds. US entrepreneur Sidney Topol and New Zealand retailer Stephen Tindall were also among the signatories. The letter was published before the upcoming meeting of G20 finance ministers. It comes at a time when many experts have already spoken on the idea of taxing the wealthy to deal with the crisis. In Britain, the Institute of Fiscal Studies think-tank has said higher taxes are required for several people, not just the super-rich. Earlier, Spanish and Russian governments have also indicated that such taxes would be imposed. Various groups including Oxfam, Tax Justice UK, and the Patriotic Millionaires came together to pen this letter.

Tax us 'substantially': Millionaires pen letter demanding super-rich to be taxed more

A group of senior tax officers has suggested a super-rich tax and a higher levy on foreign companies to keep the cash till running as part of short term measures to help the government fight the coronavirus pandemic.

The suggestions are part of a paper titled 'Force', which stands for 'Fiscal Options &amp; Response to the COVID-19 Epidemic', submitted by the Indian Revenue Service (IRS) Association to CBDT (Central Board of Direct Taxes) Chairman P C Mody.

According to the paper, dated April 23, tax relief should be restricted to honest and compliant taxpayers, especially those filing returns on time as there have been many instances of non-filing of returns, increase in non-deductions and withholding of TDS apart from rising under-reporting of tax liabilities through bogus loss claims.

The central government has frozen the inflation-linked allowance for its employees and pensioners, a move that will help it save around Rs 37,000 crore.

Some of the short term measures suggested in the paper include a super-rich tax by raising the highest slab rate to 40 per cent for those with an income above Rs 1 crore from 30 per cent and re-introduction of wealth tax for those with over Rs 5 crore annual income.

Short term refers to a time period of 3-6 months.

As per the paper, a copy of which is with PTI, the surcharge introduced in the Budget 2021 on the super-rich may generate only Rs 2,700 crore to the exchequer and therefore the call to up the tax slab on the super-rich. Individuals having a taxable income of Rs 1 crore are considered as super-rich.

The paper has been prepared by a group of 50 IRS officers.

The group has also suggested that the ultra-rich be taxed through two alternative ways which can be imposed for a limited time. One, up the highest slab rate to 40 per cent on the income of over Rs 1 crore from 30 per cent now and two, re-introduce wealth tax for those with a net wealth of Rs 5 crore.

For the medium term, 9-12 months time period, the paper has suggested raising additional revenue from foreign companies operating in the country by hiking the surcharge on their income from the present 2 per cent for Rs 1-10 crore and at 5 per cent on incomes exceeding Rs 10 crore.

They have also called for imposing a COVID-19 cess to help mobilise additional revenue. The one-time 'COVID Relief Cess' of 4 per cent can help finance capital investment, as per the paper.

According to an initial assessment, such a cess can fetch Rs 15,000-18,000 crore for the exchequer, the paper said.&nbsp;

A group of senior tax officers has suggested a super-rich tax and a higher levy on foreign companies to keep the cash till running as part of short term measures to help the government fight the coronavirus pandemic.

A group of senior tax officers has suggested a super-rich tax and a higher levy on foreign companies to keep the cash till running as part of short term measures to help the government fight the coronavirus pandemic. The suggestions are part of a paper titled 'Force', which stands for 'Fiscal Options & Response to the COVID-19 Epidemic', submitted by the Indian Revenue Service (IRS) Association to CBDT (Central Board of Direct Taxes) Chairman P C Mody. According to the paper, dated April 23, tax relief should be restricted to honest and compliant taxpayers, especially those filing returns on time as there have been many instances of non-filing of returns, increase in non-deductions and withholding of TDS apart from rising under-reporting of tax liabilities through bogus loss claims. The central government has frozen the inflation-linked allowance for its employees and pensioners, a move that will help it save around Rs 37,000 crore. Some of the short term measures suggested in the paper include a super-rich tax by raising the highest slab rate to 40 per cent for those with an income above Rs 1 crore from 30 per cent and re-introduction of wealth tax for those with over Rs 5 crore annual income. Short term refers to a time period of 3-6 months. As per the paper, a copy of which is with PTI, the surcharge introduced in the Budget 2021 on the super-rich may generate only Rs 2,700 crore to the exchequer and therefore the call to up the tax slab on the super-rich. Individuals having a taxable income of Rs 1 crore are considered as super-rich. The paper has been prepared by a group of 50 IRS officers. The group has also suggested that the ultra-rich be taxed through two alternative ways which can be imposed for a limited time. One, up the highest slab rate to 40 per cent on the income of over Rs 1 crore from 30 per cent now and two, re-introduce wealth tax for those with a net wealth of Rs 5 crore. For the medium term, 9-12 months time period, the paper has suggested raising additional revenue from foreign companies operating in the country by hiking the surcharge on their income from the present 2 per cent for Rs 1-10 crore and at 5 per cent on incomes exceeding Rs 10 crore. They have also called for imposing a COVID-19 cess to help mobilise additional revenue. The one-time 'COVID Relief Cess' of 4 per cent can help finance capital investment, as per the paper. According to an initial assessment, such a cess can fetch Rs 15,000-18,000 crore for the exchequer, the paper said.

Tax officers suggest 40% tax on super-rich, higher levy on foreign companies to fund COVID-19 fight

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Impose 2% tax on super-rich to combat tax evasion, bring parity: EU Tax Observatory

Tax us 'substantially': Millionaires pen letter demanding super-rich to be taxed more

Tax officers suggest 40% tax on super-rich, higher levy on foreign companies to fund COVID-19 fight