In anticipation of the implementation of the draft directive published by the EU Commission for a tax on financial transactions, a domestic financial transaction tax has been introduced in France (the "French FTT"). Under legislation adopted by the Assemblée Nationale, the French FTT will come into effect on 1 August 2012. The new tax is projected to raise EUR 1.1 billion per year. Though narrower in scope than its proposed EU counterpart, the French FTT is likely to have an impact not only in France but also globally. We examine the scope of the French FTT, some practical issues arising and implications for the wider financial transaction tax proposals.
View full memo, "The French Financial Transaction Tax: a Sign of Things to Come?"