Wealth taxes have been increasingly discussed by international institutions such as the UN, the G20, the OECD, and the IMF. However, these discussions often overlook the critical role of beneficial ownership transparency. This paper argues that asset beneficial ownership is not merely ancillary but essential for the effective enforcement of wealth taxes.
Asset beneficial ownership transparency plays a pivotal role in preventing the underreporting of wealth by identifying previously unknown high-net-worth individuals (HNWIs) subject to wealth taxes as well as ensuring the taxable base of wealth taxpayers is complete (and that liabilities are truthful and legitimate). By achieving these objectives, it enhances fairness and progressivity, enabling countries to impose appropriate marginal wealth tax rates on the wealthiest individuals.
To fulfil its potential, asset beneficial ownership transparency must address six ways in which interests in wealth are held and which are covered in this report..