Transaction tax means more compliance challenges for banks

After years of debate, a European financial transaction tax in at least some of the EU now looks close to a certainty. Negotiations continue, but there is enough known about key features to allow financial institutions to start implementation planning now

The meeting of the European Union's Economic and Financial Affairs Council (Ecofin) on May 6 ended with a joint statement which committed to introducing a financial transaction tax (FTT) in 11 participating member states. The participants – including France, Germany, Spain and Italy, but not the UK – would work towards the progressive implementation of the tax, "focusing initially on the taxation of shares and derivatives, in order to observe its economic impact before broadening its scope".

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