EC warns of ‘double taxation’ risk

The Financial Transaction tax to which 11 EU countries are committed could result in double taxation in Ireland where a stamp duty is imposed on some transactions, the European Commission has said.

Ireland, despite the prospect of getting more than €500m a year from a FTT, has taken the advice of the industry and opted out of the tax, saying it could frighten off some of the financial services industry they say employs some 30,000 people.

Tax Commissioner Algirdis Semeta unveiled the details of the proposed tax which will now be discussed by the 27 member states, but just needs the unanimous agreement of those adopting it when it is finally agreed. In total it should raise up to €35bn a year, ranging from €9bn for Germany and €7bn for France to €85m for Estonia.