Home      Login


The European Commission Draft Directive on Financial Transaction Tax and its Implications  


Author:  Michael  McGowan .; Nicolas  de Boynes .; Andrew  Thomson.


Source: Volume 29, Number 02, Winter 2012 , pp.83-96(14)




Journal of Taxation of Investments

< previous article |return to table of contents

Abstract: 

The European Commission has published its proposal for a financial transaction tax (FTT) that, beginning in 2014, would be paid by financial institutions on transactions in financial instruments if at least one of the parties is located in the E.U. If enacted, the FTT could have far-reaching consequences, affecting investors and financial institutions around the world, including in the United States. Although the proposed FTT rate is low—sales and purchases of shares and bonds would be taxed at 0.1 percent and derivative contracts at 0.01 percent—for covered institutions doing high-volume business, the costs could quickly mount.

Keywords: financial transaction tax, Tobin tax, stamp duty, European Union, financial institutions

Affiliations:  1: Sullivan & Cromwell; 2: Sullivan & Cromwell; 3: Sullivan & Cromwell.

Subscribers click here to open full text in PDF.
Non-subscribers click here to purchase this article. $17

< previous article |return to table of contents