Policy Forum: The Financial Activities Tax

Posted: 2 Feb 2017

See all articles by Michael Keen

Michael Keen

International Monetary Fund (IMF) - Fiscal Affairs Department; CESifo (Center for Economic Studies and Ifo Institute); Institute for Fiscal Studies (IFS)

Russell Krelove

International Monetary Fund (IMF) - Fiscal Affairs Department

John Norregaard

Formerly with International Monetary Fund (IMF); Independent

Date Written: February 1, 2017

Abstract

This article considers key issues in the design of a financial activities tax, which is an addition-based value-added tax (VAT) applied to financial activities. The form of FAT discussed in the article by no means resolves all the difficulties associated with exemption within an invoice-credit form of VAT, but principle and such limited experience as exists suggest that it may offer a useful way ahead when more perfect solutions are not available.

Keywords: value-added tax; goods and services tax; financial services; financial institutions; tax neutrality; windfall profits

Suggested Citation

Keen, Michael and Krelove, Russell and Norregaard, John, Policy Forum: The Financial Activities Tax (February 1, 2017). Canadian Tax Journal/Revue Fiscale Canadienne, 2016, Vol. 64, No. 2, p. 389. Available at SSRN: https://ssrn.com/abstract=2909931

Michael Keen (Contact Author)

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Institute for Fiscal Studies (IFS)

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

Russell Krelove

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

John Norregaard

Formerly with International Monetary Fund (IMF) ( email )

700 19th Street, NW
Washington, DC 20431
United States

Independent ( email )

No Address Available

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