International Tax Review has obtained a copy of the report that proposes two new taxes for financial services companies.
The report proposes that financial institutions should have to pay a Financial Stability Contribution (FSC) and a Financial Activities Tax (FAT).
The FSC would fund any government support of the financial sector in the future. To start with, it would be a flat fee but would be modified to account for the riskiness of an institution and its contribution to the risk in the financial system.
The FAT would be charged on a the profits and remuneration of financial institutions
The report will be reviewed by G20 finance ministers in Toronto this week before it is presented to heads of government in two months.
The IMF was asked by G20 leaders to "...prepare a report for our next meeting [June 2010] with regard to the range of options countries have adopted or are considering as to how the financial sector could make a fair and substantial contribution toward paying for any burden associated with government interventions to repair the banking system".
More to follow...
