Թ

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Թ
Leading the Way

Global Թ Finance News and Commentary
≔ Menu
Թ
Leading the Way

Global Թ Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Industry news
  3. Թ finance firms face turbulent tax environment
Industry news

Թ finance firms face turbulent tax environment


22 June 2023 Lisbon
Reporter: Carmella Haswell

Generic business image for news article
Image: SFT
The securities lending industry is navigating a “somewhat tricky” and “slightly turbulent” tax environment with increased scrutiny from tax authorities across Europe, according to the Legal & Tax Initiatives 2022/23 panel at the ISLA 30 Conference in Lisbon.

The panel provided an overview of the tax environment in which the securities lending industry operates and the challenges the industry is facing from a tax perspective.

Tax rules have always existed on securities lending and continue to evolve, one panellist confirmed.

In 2018, tax came into the spotlight when a consortium of investigative journalists in the EU shone a light on the cum-ex scandal. In the same year, the European Parliament estimated that, at that time, approximately €50 billion was lost to aggressive cum-ex countries in Europe.

Following these events, associations including the European Թ and Markets Authority (ESMA) and the European Banking Authority (EBA) launched investigations into such schemes.

Currently, the industry is required to comply with an extensive body of legislation requiring market participants to implement robust tax reference frameworks for identifying, mitigating and reporting potential tax abuses, conference attendees heard.

Some initiatives target aggressive forms of securities lending, for example, anti-CoCo circulars in Germany. Some initiatives are more general in their application, such as the Organisation for Economic Co-operation and Development’s (OECD’s) Mandatory Disclosure Regime. And some “perfectly sensible” initiatives, a panellist noted, have had unintended consequences for securities lending.

The discussion on tax concluded that tax rules should be clear, intelligible, predictable and certain so market participants can confidently comply with their obligations.

In addition, member states need to strike a balance between promoting business and fair play, tax collection and control of tax abuse to maintain the efficiency of capital markets.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Թ Finance Times
Advertisement
Subscribe today
Knowledge base

Companies in this article
→ ISLA

Explore our extensive directory to find all the essential contacts you need

Visit our directory →
Glossary terms in this article
→ ISLA

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →