The financial transaction tax (FTT) is set to be introduced by 11 EU member states. Richard Murphy of Tax Research looks at the case for an FTT, how it would work in practice and why, contrary to other anti-poverty campaigners, he believes it should not be used to raise revenue for developing countries, but to constrain out of control banking.
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Where a TP study of comparables produces an arm’s-length range, and the taxpayer’s filed position is outside that range, HMRC will adjust to the median by default