How AI is Powering a New Era of Tax Cooperation for High-Net-Worth Individuals
The global tax landscape is changing rapidly. Governments are increasingly recognizing that to close tax gaps and ensure fairness, they must work together to address one of the most complex challenges in taxation: accurately identifying and taxing high-net-worth individuals (HNWIs) across borders.
Recent developments in Europe and Latin America signal the beginning of a coordinated global movement. Brazil and Spain have announced a coalition for governments to cooperate on taxing HNWIs—an initiative that aligns with emerging wealth tax discussions in France and beyond. French authorities, for instance, expect their proposed wealth tax to generate €2 billion annually. As Nobel laureate Joseph Stiglitz pointed out, finding and closing tax loopholes is “a constant battle” for governments, and implementing minimum wealth taxes “short-circuits that battle.”
But for these policies to succeed, governments need the right intelligence tools to uncover the full spectrum of income streams that HNWIs use to build and preserve wealth.
Why Traditional Methods Fall Short
HNWIs often have complex, multi-jurisdictional financial footprints. Their income may stem from sources such as:
- Offshore investments and trusts
- Real estate portfolios held through layered entities
- Digital assets, including cryptocurrency holdings
- Private company ownership structures and intercompany transactions
- Royalties, licensing agreements, and cross-border intellectual property transfers
Traditional audit and data collection methods are reactive, manual, and siloed. Tax agencies often rely on voluntary disclosures, incomplete financial records, or whistleblower information—none of which provide a complete or timely picture.
Where IVIX Comes In
IVIX (IVIX.ai) empowers tax authorities with AI-powered intelligence that automates the detection, mapping, and analysis of income-generating activities, no matter how complex or opaque the structure.
Our technology enables governments to:
- Identify HNWIs within their respective jurisdiction who may have previously gone unnoticed through data fusion across multiple sources.
- Uncover hidden income streams across digital, financial, and real asset ecosystems, including cryptocurrency transactions and offshore holdings.
- Generate actionable leads for tax audits and compliance teams with high accuracy and low false-positive rates.
- Scale their efforts efficiently, moving beyond manual investigations to AI-driven intelligence operations.
By surfacing the full income network of an individual, IVIX allows tax agencies to tax accurately and fairly, ensuring that everyone contributes their share.
The Rise of Cross-Border Tax Cooperation
The coalition between Brazil and Spain represents a significant step forward. By pooling intelligence and aligning tax enforcement strategies, these governments are acknowledging a simple truth: wealth is global, and so must be tax intelligence.
This model of cooperation has three key pillars:
- Shared Intelligence: Governments collaborate to share data on financial flows, asset ownership, and residency status.
- Harmonized Policy Frameworks: Participating countries align definitions, thresholds, and methodologies for assessing wealth and income.
- Technology Infrastructure: AI-powered platforms like IVIX provide the analytical backbone for detecting hidden wealth at scale.
Such coalitions make it possible to close loopholes that HNWIs exploit through jurisdictional arbitrage. For Latin America—home to significant private wealth and growing global investment ties—this collaboration could be transformative.
Latin America’s Strategic Moment
Latin American governments are at a strategic crossroads. With economic pressures mounting and public demand for fiscal fairness growing, modernizing tax enforcement is no longer optional. By adopting cutting-edge tools like IVIX and participating in international coalitions, countries like Brazil are leading the way in setting a precedent for smarter, more equitable taxation.
As this movement gains momentum, we expect more countries across the region to follow suit—leveraging AI intelligence not just to find the wealthy, but to map their wealth accurately.
Conclusion
The fight against tax evasion among HNWIs is entering a new phase—one where technology, intelligence, and international collaboration converge. IVIX is proud to be at the forefront of this transformation, enabling governments to close tax gaps, enforce wealth taxes effectively, and build more equitable economies.
