OECD Issues Paper on High Net Worth Individuals for Public Comment

On October 30, 2008, the Organization of Economic Cooperation and Development (OECD) issued a discussion paper on the treatment of high net worth individuals (HNWIs). The paper has significance for enforcement modalities, such as voluntary disclosure. It requests public comment and has a special questionnaire form to solicit such comments. The report uses the term HWNIs broadly to refer to taxpayers at the top of the wealth or income scale but does not attempt to otherwise define the term. Thresholds used for domestic tax purposes vary from country to country. In private banking reports, an HNWI is often defined as an individual with investable assets exceeding U.S. $1 million. An ultra-HNWI is sometimes defined as somebody with assets in excess of U.S. $30 million. The Australian tax administration uses a specific risk assessment process to all individuals with a net worth in excess of AUS $30 million or more. In Ireland, individuals with a net worth in excess of € 50 million are dealt with by a specialized unit...[more]