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Taxing Financial Transactions: An Assessment of Administrative Feasibility

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  • Mr. John D Brondolo

Abstract

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.

Suggested Citation

  • Mr. John D Brondolo, 2011. "Taxing Financial Transactions: An Assessment of Administrative Feasibility," IMF Working Papers 2011/185, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2011/185
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    References listed on IDEAS

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    3. repec:ind:icrier:254 is not listed on IDEAS
    4. Umlauf, Steven R., 1993. "Transaction taxes and the behavior of the Swedish stock market," Journal of Financial Economics, Elsevier, vol. 33(2), pages 227-240, April.
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    9. Mr. Karl F Habermeier & Mr. Andrei A Kirilenko, 2001. "Securities Transaction Taxes and Financial Markets," IMF Working Papers 2001/051, International Monetary Fund.
    10. Ostry, Jonathan D., 2012. "Managing Capital Flows: What Tools to Use?," Asian Development Review, Asian Development Bank, vol. 29(1), pages 83-89.
    11. Mr. Alan A. Tait, 1991. "Value-Added Tax: Administrative and Policy Issues," IMF Occasional Papers 1991/011, International Monetary Fund.
    12. Stephan Schulmeister & Margit Schratzenstaller & Oliver Picek, 2008. "A General Financial Transaction Tax. Motives, Revenues, Feasibility and Effects," WIFO Studies, WIFO, number 31819, February.
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    Cited by:

    1. Yiannis Kitromilides & Ana Rosa González, 2013. "The EU Financial Transactions Tax: Antecedents and Current Debate," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(3), pages 311-321, May.
    2. Ms. Thornton Matheson, 2011. "Taxing Financial Transactions: Issues and Evidence," IMF Working Papers 2011/054, International Monetary Fund.
    3. Richard M. Bird, 2014. "Global Taxes and International Taxation: Mirage and Reality," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1429, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    4. Carlos Contreras & Mónica Contreras, 2015. "Estimación de la recaudación del Impuesto sobre Transacciones Financieras: el caso español," Hacienda Pública Española / Review of Public Economics, IEF, vol. 213(2), pages 109-143, June.
    5. Peter Kriesler & J W Nevile & G C Harcourt, 2013. "Exchange rates and the macroeconomy in an era of global financial crises, with special reference to Australia," The Economic and Labour Relations Review, , vol. 24(1), pages 51-63, March.
    6. Richard M. Bird, 2018. "Are global taxes feasible?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(5), pages 1372-1400, October.
    7. Thornton Matheson, 2012. "Security transaction taxes: issues and evidence," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(6), pages 884-912, December.
    8. Bradley Jones, 2015. "Asset Bubbles: Re-thinking Policy for the Age of Asset Management," IMF Working Papers 2015/027, International Monetary Fund.

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