International Tax Review is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Editorial

As part of a continuing focus on the tax issues impacting the asset management industry, International Tax Review brings you the second edition of the Financial Services supplement publication.

Over the past 12 months, when the first edition was published (replacing the longstanding annual publication on capital markets tax developments), much has happened in the area of financial services taxation. We are now approaching the first anniversary of the implementation of the US Foreign Account Tax Compliance Act (FATCA), for example, and firms are continuing to size up their own requirements with a view to increasing compliance and reporting efficiencies on a platform that will stand up in the long term.

One trend identified in 2014 – gaining extra revenues from the financial sector through bank levies – has continued. Some authorities, notably the UK government, have engaged in a touch of mission creep, with 2015 seeing further gradual hikes to bank levy rates.

However, governments may need to resist the temptation to continue looking at such levies as an easy revenue-raiser, or at least curb rate rises, as the financial sector begins to kick back. In the UK specifically, where the bank levy rate has been raised eight times since its inception – most recently to 0.21% in the March Budget – HSBC and Standard Chartered are among those considering the viability of relocating away from the London financial centre in favour of Asia. After HSBC announced it was undertaking a review of its headquarter location, the bank's share price rose, suggesting that shareholders would support a relocation.

Progress on the proposed financial transaction tax in Europe (EU FTT) has stalled, meanwhile, with recent meetings of the 11 participating member states characterised by wrangling over revenue collection (both volume and processes) and over which trades to tax. However, the rhetoric of Pierre Moscovici, European tax commissioner, remains upbeat, so taxpayers should expect further announcements in the coming months.

And while relatively new structures and mechanisms like the exchange-traded fund (ETF) continue to grow, the associated tax and regulatory challenges must not be overlooked. The main tax challenges for ETFs, and other asset management vehicles, stem from the proposals in the OECD's BEPS project, increased investor reporting in general, and the proposed EU FTT.

We hope that this guide will help you to effectively manage such challenges, along with your other financial services tax issues.

Matthew Gilleard

Editor, International Tax Review

more across site & bottom lb ros

More from across our site

The BEPS Monitoring Group has found a rare point of agreement with business bodies advocating an EU-wide one-stop-shop for compliance under BEFIT.
Former PwC partner Peter-John Collins has been banned from serving as a tax agent in Australia, while Brazil reports its best-ever year of tax collection on record.
Industry groups are concerned about the shift away from the ALP towards formulary apportionment as part of a common consolidated corporate tax base across the EU.
The former tax official in Italy will take up her post in April.
With marked economic disruption matched by a frenetic rate of regulatory upheaval, ITR partnered with Asia’s leading legal minds to navigate the continent’s growing complexity.
Lawmakers seem more reticent than ever to make ambitious tax proposals since the disastrous ‘mini-budget’ last September, but the country needs serious change.
The panel, the only one dedicated to tax at the World Economic Forum, comprised government ministers and other officials.
Colombian Finance Minister José Antonio Ocampo announced preparations for a Latin American tax summit, while the potentially ‘dangerous’ Inflation Reduction Act has come under fire.
The OECD’s two-pillar solution may increase global tax revenue gains by more than $200 billion a year, but pillar one is the key to such gains due to its fundamental changes to taxing rights.
The solution to address the tax challenges arising from digitalisation and globalisation will generate more revenue than previously estimated.