EU Court Backs Italian Transaction Tax in SocGen Dispute

<-bsp-bb-link state="{"bbHref":"bbg://securities/345300Z%20BB%20Equity","_id":"00000171-ca7b-deda-a579-fa7f2e440000","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">EU nations can make foreign firms pay transactions taxes on derivatives trades when the underlying securities are based in their territory, the bloc’s top court says.

• Case concerns dispute involving Societe Generale SA, which was seeking refunds of Italian levies
• EU law doesn’t prevent such taxes “since these instruments have as their underlying title a security issued by a company established in that Member State,” the EU Court of Justice court says
• “The administrative and declaratory obligations accompanying this tax incumbent on non-resident entities must not, however, go beyond what is necessary for the recovery of the tax,” court ...