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Italy: Financial transaction tax is challenged (CJEU Advocate General opinion)

Italy: Financial transaction tax is challenged

The Advocate General of the Court of Justice of the European Union (CJEU) in late November 2019 rendered an opinion in a challenge to Italy’s financial transaction tax. The Advocate General concluded that the tax does not infringe the free movement of capital.

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Read the Advocate General’s opinion. The case is: Société Générale (C-565/18)

The case concerns the compatibility of the Italian financial transaction tax with EU law. The financial transaction tax is a liability with regard to any transaction involving derivative financial instruments having as their underlying assets financial instruments governed by Italian law—regardless where the transaction was concluded and without regard to the country of residence of the contracting parties

The Advocate General concluded that the Italian financial transaction tax does not infringe the free movement of capital because it is not discriminatory.

The Advocate General’s opinion is not binding on the CJEU. Rather, the role of the Advocate General is to propose to the court, in complete independence, a legal solution to the case. The judges then begin their deliberations in the case, with judgment to be given at a later date.

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