This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here. favicon LAWANDTAX-NEWS.COM
HOME | CONTACT | RECRUITMENT | ABOUT | LEGAL | PRIVACY & COOKIES Join us on Twitter Lowtax Facebook page Join our discussion on LinkedIn Join us on Google+ Delicious Subscribe to the Tax-News RSS Feed


Articles »

Country Home Pages

British Virgin Islands
Hong Kong
Isle of Man
South Africa

Daily Tax Quote

Lowtax Network Sites
Lowtax Network Portal: 'Low-tax' business and investment in the top 50 jurisdictions covered in exceptional detail.
Tax News: Global tax news, continuously updated through the day.
Expat Briefing: A free online publication serving international expatriates and featuring world news, forums, events, in-depth country information and reliable investment and personal taxation guides.
Law & Tax News: Daily news and background data on tax and legal developments for international business.
Offshore-e-com: A topical guide to offshore e-commerce focused on tax and regulation.
Lowtax Library: One of the web's largest and most authoritative business and investment information sources.
US Tax Network: The resource for free online US taxation information, covering: corporate tax, individual tax, international tax, expatriates, sales and e-commerce tax, investment tax.
Offshore Trusts Guide: OTG publishes news, features and newsletters on the use of offshore trust structures.
TreatyPro: Online tax treaty resource.
Global Incorporation Guide [GIG]: A BSI / Lowtax Network international business smart tool.
ECJ Rejects UK Challenge To EU FTT

by Robert Lee,, London Monday, May 5, 2014

The Mayor of London has expressed disappointment at the European Court of Justice's decision to reject the UK's legal challenge against a proposed European Union financial transaction tax (FTT).

Reacting to the ruling, issued on April 30, Boris Johnson said: "With London's economy buoyant once more and driving the national recovery, the last thing that we need is a barmy tax that will stamp on growth and potentially drive businesses to financial centers outside the European Union (EU). Finance is a global game and our rivals in the US and Asia will be licking their lips in sheer delight."

The UK launched its legal challenge in April 2013, when it requested that the Court annul a European Council decision authorizing the use by 11 EU member states of the enhanced cooperation procedure to implement a tax on financial transactions, labeled a Tobin tax. At the heart of the UK's argument was that it would have extraterritorial effects and impose costs on non-participating member states.

In a statement explaining its decision in United Kingdom v Council (Case C-209/13), the Court argued that: "The contested decision does no more than authorize the establishment of enhanced cooperation, but does not contain any substantive element on the FTT itself. The elements of a future FTT challenged by the United Kingdom are in no way constituent elements of the contested decision."

"Likewise, the contested decision contains no provision on the issue of expenditure linked to the implementation of enhanced cooperation. That issue can therefore not be examined before the introduction of the FTT," the statement added.

The Court concluded that the two arguments put forward by the UK Government are directed at elements of a potential FTT, rather than at the authorization of enhanced cooperation itself. The UK's action was accordingly dismissed.

Financial services experts TheCityUK said that, despite the defeat, the UK had been right to press the issue at an early stage, as the challenge provided an opportunity to highlight the implications for Europe's economy as well as the need to maintain a level playing field for all EU member states.

Chris Cummings, Chief Executive of TheCityUK, commented: "The ECJ's legal judgement focuses on the enhanced cooperation procedure. But what is really at stake here is the right of non-participating member states to promote economic growth in their own markets. The Commission's own impact assessment has shown that the FTT is bad for savers and bad for business."

"It is the exact opposite of the type of intervention that is needed at the moment if the European economy is to grow and if we are to show international markets that Europe is open for business. It risks having a particularly adverse effect on London as Europe's financial center."

Simon Leach, financial services tax partner at PwC, said that: "The opportunity remains for the UK or other EU member states to challenge the final version of the [Commission's] Directive once adopted. Unless significant structural changes are made to the proposed tax, future legal challenges appear likely."

An announcement on the progress of FTT negotiations is expected next week. Leach believes that "there are clear differences of opinion between the 11 member states on the precise scope and details of the tax to be implemented." Significant additional work will be needed before an agreement can be reached, and he expects that a phased implementation of the tax will be the only practical way forward.



One of the web's largest and most authoritative business and investment information sources. Alongside topical, daily news on worldwide tax developments, you can receive weekly newswires or access up-to-date intelligence reports on a range of legal, tax and investment subjects.


Our 16 constantly updated intelligence reports cover every important aspect of 'offshore' and international tax-planning in depth, including banking secrecy, the EU's savings tax directive, offshore funds, e-commerce, offshore gaming and transfer pricing. Reports are available for immediate downloading or as subscription services with news pages.

Advertising & Marketing

With over 50,000 qualified readers every month our web-sites offer a number of cost effective, targeted advertising, sponsorship and marketing opportunities:

Display advertising - from 'skyscrapers' to 'buttons'
Content/article submission and sponsorship
Opt-in email marketing
On-line Services Directory listings

Click here to learn more or contact Charles Bell on +44 (0)1424 205 425 or at and he will put you in touch with your regional rep.

News & Content Solutions

Could your corporate web-site or newsletter benefit from incorporating regularly updated news and content tailored to serve your clients' interests? We can provide a variety of maintenance-free news and content solutions that can be seamlessly integrated and dynamically delivered:

Customised, personalised 'own-brand' news services
Newsletter content and management
News Headlines Tickers

Click here to learn more or contact Charles Bell on +44 (0)1424 205 425 or at and he will put you in touch with your regional rep.

Important Notice: Wolters Kluwer TAA Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.

All rights reserved. © 2017 Wolters Kluwer TAA Limited

All content on this site has been provided by BSIRN.