Revised 2016 start date illustrates ongoing challenges for the EU FTT, says Eversheds

Ben Jones, a tax expert at Eversheds, has commented on news that a EU-wide financial transaction tax (FTT) is set to be effective from 2016.

He said: ‘Given that on original conception the FTT was scheduled to commence on 1 January 2014, and that the later proposals under enhanced co-operation were intended for implementation mid-2014, this revised 2016 start date illustrates the difficulties being faced by even the 11 willing member states in reaching agreement on this tax.

‘Even if the participating member states can eventually agree, there remains the potential for further legal challenge to the tax by non-participating member states, following the UK’s recent challenge in the European Court of Justice, which failed for being premature rather than on substantive grounds.’