EU FTT – Will the Commission’s proposal survive?
There continues to be much press coverage around the EU Financial Transaction Tax (“EU FTT”). There has been speculation that the draft Directive issued earlier this year will be considerably diluted and that the eleven countries within the Enhanced Cooperation Procedure are struggling to reach consensus. Notably, there was no mention of the EU FTT as part of the Irish Presidency report to the ECOFIN at the end of last week and official commentary has been limited. EU Tax Commissioner Semeta has stated that such news reports do not reflect what is currently going on in the Council. So what is going on in the Council and where do the negotiations stand? In this newsflash we provide an update on what continues to be a highly political topic.
The Italian FTT – deferral of key datesGiven the focus of press coverage in recent weeks on the negotiations among the 11 EU Member States involved in the Enhanced Cooperation Procedure for the EU Financial Transaction Tax (“FTT”), it is perhaps easy to forget that financial institutions are already grappling with the domestic FTT regimes implemented by France in August 2012 and in Italy earlier this year. For both of these regimes, there remain a number of practical issues. In light of this it was announced in Italy recently that key dates for payment of the tax and the start of the derivatives regime would be deferred. Read more in our latest Newsflash.