Financial Transaction Tax: Difference between revisions
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(FTT). | (FTT). | ||
A tax levied on certain financial transactions. FTTs are levied at the financial institution’s level. | A tax to be levied on certain financial transactions. FTTs are designed to be levied at the financial institution’s level. | ||
In | In 2011, the European Commission proposed a harmonised Financial Transaction Tax for the entire European Union. The objectives of the proposed FTT were to: | ||
* prevent the fragmentation of the Single Market that could result from numerous uncoordinated national approaches to taxing financial transactions | * prevent the fragmentation of the Single Market that could result from numerous uncoordinated national approaches to taxing financial transactions | ||
* ensure that the financial sector made a fair and substantial contribution to public finances | * ensure that the financial sector made a fair and substantial contribution to public finances | ||
* discourage financial transactions which do not contribute to the efficiency of financial markets or of the real economy. | * discourage financial transactions which do not contribute to the efficiency of financial markets or of the real economy. | ||
The initiative | The initiative was also designed to be a first tangible step for taxing such transactions at the global level. | ||
It is possible that a treasury centre that conducts financial transactions could be regarded as a 'financial institution' for FTT purposes. Hence, depending on the respective transaction, a liability to FTT might arise. | |||
Revision as of 15:35, 1 August 2015
(FTT).
A tax to be levied on certain financial transactions. FTTs are designed to be levied at the financial institution’s level.
In 2011, the European Commission proposed a harmonised Financial Transaction Tax for the entire European Union. The objectives of the proposed FTT were to:
- prevent the fragmentation of the Single Market that could result from numerous uncoordinated national approaches to taxing financial transactions
- ensure that the financial sector made a fair and substantial contribution to public finances
- discourage financial transactions which do not contribute to the efficiency of financial markets or of the real economy.
The initiative was also designed to be a first tangible step for taxing such transactions at the global level.
It is possible that a treasury centre that conducts financial transactions could be regarded as a 'financial institution' for FTT purposes. Hence, depending on the respective transaction, a liability to FTT might arise.
