Tue, Apr 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Financial transaction tax ruled illegal in the EU, could have implications for US bill

Wednesday, September 11, 2013

Bailey McCann, Opalesque New York:

According to a legal opinion posted by Reuters, from a group of EU lawyers, the proposed financial transaction tax is illegal according to the Union's own laws. The EU Council's Legal Service argues that the proposed levy is "not compatible" with European Union treaties because it "infringes upon the taxing competences of non participating Member States." The ruling could be the end of the line for the financial transaction tax without significant amendments.

The levy has been opposed by a number of the EU member states - especially Britain, along with many fund managers and financial firms. According to lawyers with Clifford Chance, there are a number of problems with the proposal as it stands. Specifically, the "enhanced co-operation procedure can only be used where it doesn't create discrimination in trade between Member States or distort competition between them. It seems reasonably clear that the FTT would distort competition between Member States as a whole. A US bank would, for example, be subject to the FTT when transacting with a German client, but not when transacting with (say) a London client."

Attorneys also note that even though countries could, in theory, opt-out of the tax as with other European regulations, the extra......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  4. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

  5. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

 

banner