Financial Transaction Tax: Difference between revisions
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imported>Doug Williamson (Make wording clearer.) |
imported>Doug Williamson (Clarify wording.) |
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(FTT). | (FTT). | ||
A tax to be levied on certain financial transactions | A tax to be levied on certain financial transactions. | ||
In 2011, the European Commission proposed a harmonised Financial Transaction Tax for the entire European Union. The objectives of the proposed FTT were to: | In 2011, the European Commission proposed a harmonised Financial Transaction Tax for the entire European Union. The objectives of the proposed FTT were to: | ||
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* 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 was also designed to be a first tangible step for taxing such transactions | The initiative was also designed to be a first tangible step for taxing such transactions on a global basis. | ||
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 | FTTs are designed to be levied at the financial institution 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 transaction, a liability to FTT might arise. | |||
Revision as of 15:41, 1 August 2015
(FTT).
A tax to be levied on certain financial transactions.
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 on a global basis.
FTTs are designed to be levied at the financial institution 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 transaction, a liability to FTT might arise.
