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Eversheds comment: UK business can’t turn a blind eye to EU transaction tax

  • United Kingdom

    03-04-2013

    In response to a City of London Corporation study on the impact of a planned EU transaction tax on the UK and international business, Ben Jones, tax expert at global law firm Eversheds, comments:

    “This report should further stimulate the growing realisation among UK businesses that opting out of an EU financial transaction tax does not mean that the costs of such a tax will not fall on UK and other international businesses. The extra-territorial scope of the actual tax has already attracted much opposition and this report underlines the further potential economic impact of the tax on businesses not within the direct scope of the tax through increased borrowing costs.

    “In a letter issued by the House of Lords EU Committee to the Financial Secretary to the Treasury last week, the EU Commission’s assessment of the economic impact of the tax on the wider EU and internationally was roundly criticised and the legal grounds for the tax questioned, with a suggestion made that the UK should consider challenging the introduction of this tax in the European Court of Justice. As realisation of the scope and economic impact of this proposed EU financial transaction tax grows, how long can the UK, other non-participating EU states and international business continue to turn a blind eye?”

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