According to media reports, the European Council’s legal services have issued an opinion on the implementation of a Financial Transaction Tax by 11 Member States stating that it exceeds Member States’ jurisdiction for taxation under the norms of international customary law. Chartered Accountants Ireland has been in touch with Commission officials on the matter.

In an article by the Wall Street Journal, it was stated that the legal opinion in question said that the plan to implement FTT would exceed Member States’ tax powers under international law, would infringe on the rights of Member States that didn’t sign up and could breach competition rules in the bloc.

The UK has also challenged the legality of the 22 January 2013 decision of the Council to authorise enhanced cooperation on a common framework of FTT and the scope and objectives of the initial commission proposal (see Case C-209/13 UK v Council on the EU Court of Justice website).

Speaking at the ECOFIN informal Council meeting held last month in Vilnius (Lithuania), Commissioner Semeta said that the Commission is absolutely confident in the legality of the Financial Transaction Tax and reject any claim that it goes against the Treaties or that it compromises the Single Market.