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Time to Bin the Tobin Tax
While the UK veto on the Financial Transactions Tax (or “Tobin Tax”) is solid, an FTT could still cause significant damage to the UK financial services industry if it is introduced – as is being planned – by a group of eurozone countries, warns renowned international tax expert John Chown in a new report from the Centre for Policy Studies.
He also claims that, if an FTT were introduced under enhanced co-operation – as is currently being planned by France & Germany – UK branches of French & German financial institutions could be fully liable to an FTT on all transactions. Even subsidiaries of German and French financial institutions could be affected if it were shown that the risk in any transaction had been passed back to the parent company.