The participating member states were also urged to keep the other member states informed of any developments, since this tax will impact both participating and non-participating member states.
The FTT was intended to cover a wide range of financial transactions, including the purchase and sale of financial instruments and the conclusion of derivatives agreements. In general, the proposed rate of tax was 0.1% for shares and bonds and 0.01% for derivatives.
In September 2013, The European Union's legal service released a legal opinion that concluded that the FTT exceeded Member States' jurisdiction for taxation and that the tax was not compatible with certain existing EU laws.
In December 2013, the participating EU Member States agreed to delay the implementation of the FTT until 2015 at the earliest.
For more information, see "EU Council Progress on EU Financial Transaction Tax [PDF 176Kb]", prepared by KPMG's EU Tax Centre.
For more information, contact your KPMG adviser.
Information is current to May 20, 2014. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500