CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. UK Takes FTT Challenge To European Court

UK Takes FTT Challenge To European Court

By Robert Lee, Tax-News.com, London

23 April 2013


The UK has launched a legal challenge relating to the financial transaction tax (FTT), which 11 European Union countries intend to sign up to under EU provisions for "enhanced cooperation" between members.

The challenge was lodged on the deadline, and follows advice from the House of Lords European Union Committee earlier this month for the Government to seek "urgent legal advice" on the issue. The committee had warned of "far-reaching adverse consequences for UK resident institutions," and accused the Government of "complacency." It explained in a letter that the tax would apply to UK financial institutions when dealing with countries that have the FTT, and that there was a lack of detail as to how the tax will be collected and how it will affect subsidiaries outside the FTT zone.

Speaking to journalists in Washington, Chancellor George Osborne was quoted as saying: "We are concerned about the extra-territorial aspects of the commission's proposal for the tax and I think that concern is shared by some other countries." He added that the UK was not against the FTT in principle, although UK Prime Minister David Cameron is on record as describing the tax as "simply madness."

The 11 countries planning to introduce the tax are: Belgium, Germany, Estonia, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia. The EU Commissioner for Taxation, Algirdas Semeta, claims that the cost of the tax will be "very small," and that cooperation on the issue will strengthen the Internal Market.

TAGS: financial services | United Kingdom | European Union (EU) | services | Europe

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »