IMF bank tax proposals: A summary

Kashflow logo
Gina Dyer
Deputy Editor
Sift Media
Share this content

The Oxford University Centre for Business Taxation has released a detailed summary of the two new proposed bank taxes.

Under the new proposals, all institutions would pay a financial stability contribution (FSC) - which would initially be levied on a flat rate, but would be adjusted over time to reflect the risk at each institution – as well as a new financial activities tax (dubbed the 'FAT' tax) on profits and pay.

According to the report, the 'FAT' tax could be considered as an alternative to VAT (which is not currently chargeable in the banking sector and could work to shrink the financial sector in line with the rest of the economy.

It also warns that the FSC could encourage greater risk taking in the sector by offering an insurance against riskier transactions.

Both taxes...

Please Login or Register to read the full article

The full article is available to registered members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.


Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.