The Economic and Monetary Affairs Committee (ECON) in EP has published its draft report on the Council Directive introducing a Financial Transactions Tax (FTT) for 11 Member States. ECON welcomes the introduction of the issuance principle in the new Commission proposals and makes the following amendments:
- eliminates the exemption for OTC derivatives from the issuance principle;
- introduces the ownership principle, whereby a transaction does not result in transfer of title and is not legally enforceable if the tax is not paid; and
- strengthens the residence principle, clarifying that branches of institutions established in an FTT jurisdiction will also fall within the scope of the FTT.
(Source: ECON FTT Draft Report)