The
European Union’s plan to implement a harmonized financial transaction tax (FTT)
likely violates customary international law, according to an E.U.
Council legal service memorandum obtained by the Financial Times. The
non-binding opinion finds FTT “exceeds member states’ jurisdiction” by taxing
covered transactions made by E.U.-headquartered companies and their
counterparties regardless of where the trades were executed. As a result,
trades made outside E.U. jurisdiction, including New York, would be
subject to the tax. The proposal, which is designed to reduce tax
avoidance, is still supported by the E.U. Tax Commissioner, Algirdas Semeta,
who continues to defend FTT’s legality.
Read
more on this story at the Financial
Times.
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