Thu, Mar 30, 2017
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. Opalesque Exclusive: FS Investments launches energy fund[more]

    Bailey McCann, Opalesque New York: $19 billion Philadelphia-based FS Investments has launched a new interval fund which will invest in energy. The FS Energy Total Return Fund is the firm's first closed-end interval fund and will invest opportunistically in energy companies and assets. FS

  2. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less

  3. Hedge funds await outcome of French elections, feel pinch on lower oil prices & weak dollar[more]

    Komfie Manalo, Opalesque Asia: Hedge funds felt the pinch of lower oil prices and weak U.S. dollar as the Lyxor Hedge Fund Index was marginally down as of the week ending 14 March, Lyxor Asset Management said in its Weekly Briefing. The Lyxor He

  4. Opalesque Exclusive: Swiss start-up and German fund manager to launch AI hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: NNAISENSE, a Swiss start-up that develops artificial intelligence (AI) and machine learning applications, and

  5. Eric Mindich to shutter hedge fund Eton Park after difficult 2016[more]

    Komfie Manalo, Opalesque Asia: Erich Mindich is shutting down his hedge fund Eton Park after losing 9% in 2016 and its assets falling by $2bn to the current $7bn, Reuters reported. Mindich told investors