EU Financial Transaction Tax. An Effective Means to Curb.

FINACIAL TRANSACTION TAX. The Pensions and Lifetime Savings Association has warned that a new tax on financial transactions would hit savers and pension schemes. The EC’s proposal for a Financial Transaction Tax (FTT) is being taken forward by 11 Member States (France, Germany, Belgium, Greece, Austria, Portugal, Slovenia, Estonia, Spain.

On 7 October 2010, the European Commission examined the importance of developing a financial transaction tax (FTT) in its Communication on taxation of the financial sector. This Proposal for a Directive puts that development into practice and therefore represents a first step towards a more global system of taxation.

In the case of financial transactions referred to in point 2(c) of Article 2(1) and, in respect of derivative contracts, in points 2(a), 2(b) and 2(d) of Article 2(1), the taxable amount of the FTT shall be the notional amount referred to in the derivatives contract at the time of the financial transaction.

Financial Transaction Tax Taxation of the financial sector has been under discussion at the European level since 2011, when the European Commission first proposed implementing an FTT at the EU level. After initial discussions, it became apparent that there was not unanimous support amongst EU Member States for such a tax.

A financial transaction tax is one of several names for a tax on financial assets. It is synonymous with other terms such as securities transaction tax and securities transfer tax. Certain terms may denote that the tax applies to select instruments, such as the UK’s Stamp Duty Reserve Tax, which is levied on shares.

Introduction. The European financial transaction tax (FTT) is a proposal by the European Commission expected to be introduced in 2014, covering the 27 states, member of the EU.This tax is intended to cover financial transactions between financial institutions, with proposed charges against exchange of shares and bonds, and derivative contracts.(1).

Financial Transaction Taxes (“FTTs”) will fundamentally change the tax landscape for financial institutions. These taxes will have wide-reaching implications for the business models of all financial institutions, regardless of where continued to consider the introduction of an EU wide FTT. In September 2011, the EU released a draft.

Introduction. The European financial transaction tax (FTT) is a proposal by the European Commission expected to be introduced in 2014, covering the 27 state members of the EU.This tax is intended to cover financial transactions between financial institutions, with proposed charges against exchange of shares and bonds, and derivative contracts.(1).

The Economic and Financial Affairs Council will today discuss the proposal for an EU11 Financial Transaction Tax (FTT). This is the first time the proposal is brought to the ministerial level and the Law Society has said the proposal must respect EU treaties. The EU FTT is a proposal made by the European commission to introduce a FTT within some member states.

Tax reform and Tax Theory. Tax reform, especially in developing countries, is one of the most intensely debated topics around the world. The significance of this issue can be easily understood as developing economies, lacking strong fiscal traditions, have emerged as important participants in a renovated world.

What do I care about my chitchat of yesterday? The famous statement of German Chancellor Konrad Adenauer could well have been repeated by French President Emanuel Macron with his decision to initiate a postponement in introducing the European Financial Transaction Tax (EFTT).

The European Union Financial Transactions Tax A draft directive for an EU FTT was presented by the European Commission on September 28, 2011. The intention was to harmonize the tax base and set minimum rates for all transactions on (secondary) financial markets, once at least one EU party (financial institution) was involved in this transaction.