Taxing Financial Transactions: An Assessment of Administrative Feasibility

August 1, 2011

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper considers how a tax on financial transactions could be applied to three broad and partially overlapping categories of financial instruments: (1) exchange-traded instruments; (2) over-the-counter instruments; and, (3) foreign exchange instruments. For each category, the paper examines the factors that would facilitate or complicate the administration of a financial transactions tax, the options for collecting the tax, the types of compliance risks that are likely to be encountered, and measures for mitigating these risks.

Subject: Currencies, Financial institutions, Financial instruments, Foreign exchange, Foreign exchange transactions, Money, Securities, Taxes, Transaction tax

Keywords: Currencies, financial transactions tax, Foreign exchange transactions, forward contract, Global, market participant, OTC transaction, OTC transactions, Securities, stamp tax, tax administration, tax agency, tax liability, Transaction tax, transfer tax, WP

Pages:
51
Volume:
2011
DOI:
https://doi.org/10.5089/9781462309276.001
Issue:
185
Series:
Working Paper No. 2011/185
Stock No:
WPIEA2011185
ISBN:
9781462309276
ISSN:
1018-5941

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