Scottish independence: The financial implications

From United Kingdom Sep 15 2014 @ 17:34

International Adviser considers six potential financial implications of a "Yes" vote to Scottish...
view article

CITIC and former directors facing legal action over losses to 4,500 investors

From Asia Sep 12 2014 @ 12:10

State-owned Chinese conglomerate CITIC and five of its former directors are facing legal...
view article






Source launches new ETF to track Japan index

Source launches new ETF to track Japan index The latest product to emerge from the pipeline of exchange traded product provider...
view article

Scottish independence: The financial...

From United Kingdom Sep 15 2014 @ 17:34

LGIM launches multi-asset retirement fund

From Products Sep 15 2014 @ 17:32

MORE FROM Products


T. Rowe Price bolsters European team

T. Rowe Price bolsters European teamT. Rowe Price has appointed Philippe Goettmann as it looks to expand its presence...
view article

Clarien appoints director for LatAm expansion

From People Sep 15 2014 @ 14:43

Pressure on GCC employers to outsource benefits...

From Middle East Sep 15 2014 @ 12:51



HMRC issues first accelerated payment notices

HMRC issues first accelerated payment noticesHM Revenue & Customs has issued its first accelerated payment notices to suspected...
view article

Julius Baer contests claims over missing 'Cold...

From Europe Sep 15 2014 @ 12:12

Schroders appoints head of Europe product and...

From People Sep 15 2014 @ 10:28

MORE FROM Tax & Regulation

Simon Danaher

Financial Transactions tax approved by European Commission

From Europe Jan 22 2013 BY: Simon Danaher , Online Editor , International Adviser

Add to My News Comments (1)

Add to My News Print

Add to My News

add to twitter

add to linkedin

The European Commission has given the green light to 11 member countries, including Germany and France, to go ahead with a planned Financial Transaction tax, a controversial move over which some business leaders have concerns.

In a statement, the EU Commission said a group of countries representing about two thirds of the European Union’s GDP will, “for the first time ever”, be able to apply this tax at a regional level “answering the long-time calls of their citizens”.

The UK is one of 15 countries which will not be implementing the Financial Transactions tax.

Announcing the agreement, Algirdas Šemeta commissioner responsible for tax at the EC, also urged other countries to sign up for the Financial Transaction tax and commended those who had.

“Today is a milestone in global tax history... there is everything to gain from being part of an EU approach to the financial transactions tax,” said Šemeta.

“The considerable new revenues it will generate can be used for growth-friendly investment, and to support wider policy commitments such as development. Taxation will become fairer, as the financial sector makes a proper contribution to public finances and the costs of the crisis.”

Šemeta added that the single market will be strengthened “as a patchwork of national approaches is replaced with one harmonised FTT”.

Angela Foyle, tax partner at BDO, questioned whether this would in fact create the harmony Šemeta describes.

“I can’t see the UK changing its stance, unless the rest of the world also implements the tax. The current agreement could reduce liquidity in the markets and adversely affect the wider economy, as international businesses will find it more expensive to do normal business hedging transactions.

“When a similar tax was imposed on Sweden in the eighties, there was a reduction in home market liquidity and increased volatility as a result, will we see a similar problem unfold with the current tax?

“Should the 11 member states decide not to adopt a ‘pan-EU model’ and instead tailor the proposal to their country-specific needs, both the complexity and the cost of compliance and for all parties involved will increase. This FTT might well be raising more revenue, but at what cost?”

Add to My News Comments (1)

Add to My News Print

Add to My News

add to twitter

add to linkedin


Have your say

Have your say!

Please sign in or register here to leave a comment. Registration is free and only takes a few moments.

Sam De Zoysa

Opinion Former

Posted by Sam De Zoysa
on Jan 22 2013 @ 17:40

The financial illiteracy of the EC boggles the mind. Purely ideological and hang the consequences.

Only benefit is more business for London, but a larger slice of a smaller cake.

Share us on Twitter

Join the community

Join us on Linked In

Inform your colleagues

Switch to our mobile site

News on the go

Back tot he top of the page

Just click here...