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The changing face of the "EU FTT" - 19/06/2013



Five months ago, the financial services industry was reeling from the shock of the draft EU Financial Transaction Tax Directive, with an impact date of 1 January 2014.  A dual focus charging mechanism and wide anti abuse rule made a political statement about trying to ensure that those who laid the seeds of the economic crisis would also pay for it.

The inclusion of both a residence and issuer charging principle threw the effect of the Directive across the globe with anticipated revenues of €30bn - €35bn being funnelled into the 11 EU member states who had signed up to the FTT Enhanced Co Operation Procedure.

The notable lack of exemptions and associated cascade effect caused a commercial transaction costing a supposed 0.2bps to increase fivefold.  The money markets, bond yields, daily hedging and collateral were expected to be hit the hardest from a liquidity perspective, albeit there is no doubt that the ultimate cost would be felt by the general public through already diminishing pension pots and other financial investments.

We have seen members of the industry, BBA, EFAMA, IBF, IMA, ISLA, ISDA and UK Government lobby against the proposal to tax share and bond transactions at 0.1%, and derivatives at 0.01%.  These constant cries appeared to have fallen on deaf ears until rumors started to circulate about a substantial weakening of the tax in the form of a reduction in scope and phased introduction.

However, the EC came out fighting; the EU Tax and Customs Commissioner, Algirdas Šemeta, reacted last week and reconfirmed that his Directive was unchanged and there had been no official statement made in respect of a dilution of his tax.  This means that the threatened effects are still very real.

Please join us for a live streaming WebCast where five of our most respected EMEA FSI FTT Leaders will be discussing the issues facing Algirdas and the rest of the EU Commission. Mr Manfred Bergmann, Head of EU Indirect Taxation, will speak to a limited Deloitte FSI client audience the day before the WebCast allowing registrants to reap the benefit of unparalleled insight from Deloitte Germany, France, Italy, Luxembourg and the UK.

Through your PC, laptop, iPad, iPhone or iTouch, you will be able to present questions to the panel during the live broadcast.  Should prior commitments prevent you from joining the event on the day, the WebCast and ability to post questions will be available for download on demand for up to 90 days.

When: 26th June 2013, 09:00 – 10:00

Where: Your PC, laptop, iPad, iPhone or iTouch

Please follow this link to register for your place:

To discuss the above please contact Eric Centi on +352 451 452 162 or Suzi Edwards on +44 (0) 207 007 6389.

If you have any queries regarding the above, please do not hesitate to contact us.

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