1/4% Tax on all stock trades pushed in NY Times today

PS. I do see a big legal fight brewing here. Like Bush vs. Gore in the Supreme Court and ObamaCare. The Brits won't swallow Franco-German tax bombs dropping on London. Not after many centuries of this type of political warfare. FTT makes no sense other than power politics. Germans won't pass a tax that puts themselves at a competitive disadvantage either, as they are too competitive.

The showdown continues and it won't end until the last legal appeal, in the last court of law. Which court I wonder will matter most in the end. A trumped up and stacked EU court in Brussels? This will take years.

It's time for the lawyers on our thread, if any, and others in the know to flush out the legal side of this fight.
 
Quote from Robert A. Green:


It's time for the lawyers on our thread, if any, and others in the know to flush out the legal side of this fight.
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They are trying to model the eurozone FTT on UK stamp duty.

If a US person, or anyone else in the world, wants to buy UK shares (not ADRs) do they have to pay the UK stamp duty tax?

If so, then i can see how this could legally work for at least the FTT zone share transactions as the UK already imposes this tax worldwide.

I cant see how FTT is possible for FX and Derivatives unless they are traded on say a German exchange or (in the case of FX with a German bank), but they could just as easily be traded anywhere else in the world to avoid the tax. The French and Germans cant impose a FTT on a OTC euro derivative written between two banks in the US.

Regarding bonds, the FT article seems to hint the French and Germans think the stamp duty approach might be possible for eurozone Bonds, both government and corporate bonds.

Say a US bank buys a newly issued german government bond directly from the German government, a FTT will be payable at this point.
However if the US bank then sells this bond to say a Japanese bank this will incur another FTT in the someway a UK share transfer would (inorder to make the transfer legally binding the tax must be paid).

Can anyone who knows about how Bonds are issued and traded comment if this would be feasible?
 
Yes, it is time to make every institutions aware of what France and Germany are trying to do.

The latest development( taxing Eurozone originated products everywhere in the world ) seems more logical to me than the part about taxing every transaction as long there is one european involved. Ultimately it won't happen, it would create too much uncertainty about costs on every exchange in the world( CME for example doesn't give a shit about the few Eurozone clients and won't accept that their american customers can be charged if click on an Eurozone size ). The best they can do is making the European pay the tax for both.

Same thing for NYSE. Even if the merger is finalized( which is unlikely lately if I am right ), it's not because NYSE Euronext is german that transaction on NYSE will be taxed. The US wouldn't tolerate that.

Whatever they are trying to do, it will only end up marginalizing Euro institutions and products. London will need some time to adjust but ultimately they will recenter their activities on non Eurozone business and win...:)
 
Quote from slumdog:


If a US person, or anyone else in the world, wants to buy UK shares (not ADRs) do they have to pay the UK stamp duty tax?
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yes, they do.
judging from that article they're indeed trying to make this tax more like the stamp tax and that makes more sense. taxing someone based on residency is crazy complicated and has all sorts of loopholes, taxing based on trading in the underlying product has been proven by the Brits to, well, work, even though there are all sorts of loopholes here as well (cfd's, spreadbetting, adr's etc).
but in the end, i'd rather have this kind of tax (which would allow traders from countries with an ftt to simply trade other products) than the original plan, but i still very much doubt whether this change is really in the cards. the people doing all the thinking behind the design of the euro-ftt could have thought about this much easier to implement option years ago (which also wouldn't alienate the uk as much as they have a pretty hefty tax already in place) and apparently decided against it, and in favour of that ridiculous residency-concept.
 
Quote from TraDaToR:

IMO they are now trying to do both.
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And i have always wondered why Sweeden didnt try and do both?

And this is probably the reason why the current lot are not deterred by the swedish experience.
 
How about Malta? Did they not take a "win" home to there population just a month ago, by declaring the financial transaction tax and harmonized corporation taxes were now off the agenda?

Does this forceful broken record sickening attitude not risk pulling there hole "save the ez" deal apart?
 
Quote from sheda:

How about Malta? Did they not take a "win" home to there population just a month ago, by declaring the financial transaction tax and harmonized corporation taxes were now off the agenda?

Does this forceful broken record sickening attitude not risk pulling there hole "save the ez" deal apart?
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as i posted a few days ago, i really don't believe there's going to be any kind of "eurozone-ftt", only possibly "a coaltion of countries-ftt". so imo malta, like ireland, cyprus and others, just won't join.
 
The financial taxes or the rates are hiking very much and people are surely fed up with such things.So when looking for any thing just take the finance which has very less or nill transaction charges
 
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