It was never going to work out well when a major new international tax was designed by a couple of luvvies and their mates. But not only did they manage to create an appalling tax, they’ve managed to create an illegal one:
A leaked opinion from the European Union’s legal service contains warnings that the flagship policy is “not compatible” with existing laws and is also “discriminatory”.
The 14-page document, dated September 6, said the levy “exceeds Member States’ jurisdiction for taxation” and “infringes upon the taxing competences” of states that have refused to adopt it.
Experts warned that the strongly-worded opinion, although not binding, could fatally undermine the FTT.
And it’s not some minor illegality, it doesn’t conform to subsection iii) c or something. It’s about the free movement of capital and non-discrimination in doing so. One of the cornerstones of the EU system and Treaty.
To shoe horn it in in its current (extraordinarily bad) form they’d have to go back and rewrite the Treaty of Rome. Not going to happen of course. They could still have a few things like the UK’s stamp duty if that’s what they wanted. But that would raise not all that much. So why bother?