EU warns wealthy people about potential minimum tax rate Millionaires have little or no tax – Executive Summary

A recent study on European Union Tax Monitor (European Union), shows that billionaires around the world have effective tax rates equivalent to 0% to 0.5% of their wealth. Experts warn of potential minimum taxes.

Data show that minimal or no taxes are due to the frequent use of shell companies to avoid paying taxes on income.

“The basic proposal is to impose a global minimum tax on billionaires, equivalent to 2% of their wealth,” the Financial Observatory notes, adding that this measure could make the tax authorities allocate 236 billion euros ($250 billion) at the global level. .

Moreover, data suggest that the 15% global minimum tax on multinational corporations has weakened over time, while it was initially expected to increase global tax revenues by approximately 10%.

Experts also point out that enhanced global minimum taxes on multinational corporations would raise more than €236 billion ($250 billion) annually.

On the other hand, the EU study reveals that tax evasion by the wealthy has decreased. “Thanks to the automatic exchange of banking information, our estimates suggest that offshore tax evasion has declined by about three-fold over the past 10 years,” they wrote in the study. “This success shows that rapid progress in combating tax evasion is possible if there is the political will to do so,” they wrote in the study. .

This report was prepared by the EU Tax Observatory team, a research laboratory established in 2021 to analyze international tax issues, and summarizes the work of more than 100 researchers around the world, often in partnership with tax authorities.