• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 4/30/2014

EU - UK challenge to financial transaction tax rejected 

April 30:  The Court of Justice of the European Union (CJEU) today issued a judgment, rejecting a legal action filed by the United Kingdom government for the annulment of the EU Council’s decision to authorize enhanced cooperation in the area of financial transaction tax. United Kingdom v. Council, C-208/13 (30 April 2014)

The CJEU rejected the UK contentions on the basis that the challenges were directed at the elements of a potential financial transaction tax—and not at the authorization to establish enhanced cooperation that was the subject of the UK’s action. Because the EU Council’s decision to authorize the enhanced cooperation did not contain any substantive element on the financial transaction tax itself, the arguments were not accepted by the CJEU.

Read an April 2014 report [PDF 148 KB] prepared by KPMG’s EU Tax Centre: EU Court of Justice rejects UK challenge to EU Financial Transaction Tax on procedural grounds

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