Why private wealth is the next tax frontier

Tax advisers and politicians may not like it but governments are increasingly shifting focus from taxing corporations to taxing private wealth. As traditional tax bases erode under the weight of global inequality and corporate lobbying attention is turning to high net-worth individuals mobile ‘tax nomads’ and broader income definitions.

This article explores emerging approaches worth watching – wealth taxes expanded tax residency rules and cross-border enforcement – and argues that multilateral co-operation building on the Organisation for Economic Co-operation and Development (OECD) Pillars 1 and 2 and the G7’s recent compromise could lay the groundwork for a future emerging ‘Pillar 3: a co-ordinated global wealth tax’.

Shifting landscape of global taxation

In recent years the international tax community has witnessed significant reforms targeting multinational corporations through the OECD’s Pillar 1 and Pillar 2 frameworks. Yet as governments worldwide grapple with...