Netherlands Looks Set To Give FTT Green Light
However, the Dutch have taken the bold move to apply conditions including the exclusion of pension funds from the tax and that revenues must return to the member state adding yet another layer to the complexity of an already half-baked attempt to implement a EU wide tax.
Critics are concerned that the implementation of the tax will result in a trading dichotomy across Europe. Financial hubs such as Frankfurt, Paris and Madrid will be affected by the tax, with other centres of trading, including London, seemingly gaining a significant advantage through their resilience in not signing up to the agreement.
Perhaps more importantly, the moves towards this tax paints an increasingly grim picture for any potential for growth in the region. The prospect of Europe-wide implementation would act as a monumental downgrade for the continent's competitiveness, suffocating Europe of much needed inward investment from those multinationals that have built up significant cash piles during the last few years of recession. What is clear is that a blanket international tax on financial transactions will undoubtedly hit certain countries and regions harder than others potentially pushing business to markets outside of EU control."
Frederic Donnedieu de Vabres, Chairman of Taxand, the world's largest independent global organisation of specialist tax advisors to multinational businesses.
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