19/04/22

GLOBAL REGULATION: Leading economists call for global 'list' to target hidden wealth, tax evasion.

As published on rfi.fr, Tuesday 19 April, 2022.

Leading economists are urging G20 leaders to draw up a world asset register for tracking tax evaders that could pressure Russia over the Ukraine invasion by exposing oligarchs' hidden wealth.

Leading economists Joseph Stiglitz of the United States and Thomas Piketty of France among others made the call in an open letter published in The Guardian newspaper ahead of Wednesday's G20 finance meeting.

Building on progress in financial information-sharing over recent years, "it's time for a global asset register to target hidden wealth," said the letter.

It was signed by members of the Independent Commission for the Reform of International Corporate Taxation, (ICRICT) a think tank.

The group suggests creating "a network interconnecting all national asset registries of all the different forms of wealth that an individual can own where they already exist while encouraging all countries that have not yet created comprehensive asset registries to do so."

In addition to real estate, bank accounts, and other types of legal arrangements, it could include crypto assets, luxury items, and even intangible assets such as intellectual property and trademarks.

Western powers have unrolled a series of tough sanctions against Russian President Vladimir Putin and his allies since he launched his invasion of Ukraine in February.

Those targeted include the billionaire owner of Chelsea Football Club, Roman Abramovich.

Russian oligarchs are estimated to hold "at least $1 trillion in wealth abroad, often concealed in offshore companies whose true ownership is hard to determine", the letter said, adding that the issue was not limited to Russian billionaires.

"On this wall of opacity, the efforts of the countries that want to sanction these are now stumbling," it added.

With populations suffering from the impact of the Covid-19 pandemic, "Russia's invasion of Ukraine has aggravated this already-worrisome context," with rising prices and insecurity, it added.

"We now have a unique opportunity to make progress on the implementation of a global asset registry" to cut through the web of front-companies and link all kinds of assets to their true owners.

"It would provide a means to record, measure, and understand the distribution of global wealth and thereby empower governments and citizens with a thorough and detailed understanding of global inequality," the statement said.