IFA Cahiers / Cahiers de Droit Fiscal International Volume LXXXVIIIb - 2003 + CD-ROM; Consumption taxation and financial services

Financial services are generally exempted from VAT or other general consumption taxes. This panel will examine the operation of this exemption system for financial services and its impact on the economy in general and market competition in particular. The panel discussion will be divided into three main parts. The first part will deal with the broad approaches being followed around the world for taxation of financial services. The second part will deal with the problems being encountered under the current exemption syst ems. Subjects in this part will include the partial input tax deduction schemes, application of tax to outsourcing of processing of financial transactions, and the guidance provided under recent landmark court decisions in Europe. The third part will focus on options for change, both ad hoc options to address specific problems, and general options to make financial services taxable or to simplify the partial input tax deduction system.