Citigroup, Inc. · NYSE:C
Citigroup — French Financial Transaction Tax: Are You Prepared? – Webinar 2 (August 2012)
12 slides from Citigroup's conference presentation, Aug 23, 2012
Slide 1: French Financial Transaction Tax
Citi Transaction Services | Securities & Fund Services 23rd August 2012 French Financial Transaction Tax Are You Prepared? – Webinar 2 Fabrice Novel France Securities Country Manager
Slide 2: Table of Contents
Table of Contents 1. Determination of Taxable Transactions. What’s new ? 2. Publication of final guidelines by French Authorities and other Papers 3. Securities in scope’s updates 4. Further notes in relation to Exemptions provisions 5. Accountable parties & Scenarii illustrations 6. Recent informat
Slide 3: Scope and determination of Taxable Transactions
Scope and determination of Taxable Transactions Transfer of ownership’s and acquisition rules Main features of the tax code article 235 ter ZD: Only acquisitions Valuable consideration Shares or assimilated Issued by companies whose: headquarters are located in France and capitalisation
Slide 4: Publication of final guidelines by French Authorities and other Papers
Publication of final guidelines by French Authorities and other Papers Publication of administrative documents AFTI White Paper • Decrees : – 12 July: List of 109 French listed companies (ISIN codes: by financial services providers) – 07 August: Obligations of the liable parties • Fiscal instruction
Slide 5: Securities in scope's updates
Securities in scope’s updates • Law Amendment to include Investment Certificates representative of French shares such as ADRs from 01 December 2012 • COAC events: – resulting in Primary issuance (Exemption 1) carried out and reported from 2013 onwards – List of taxable and reportable events in motio
Slide 6: Further notes in relation to Exemptions Provisions
Further notes in relation to Exemptions Provisions 1. Primary market acquisitions 5. Intra group and restructuring transactions 2. CCP/CSD’s transactions as part of their regular 6. Securities financing (stock lending /repo) activities transactions 3. Market makers - Conditions related to: 7. Intra
Slide 7: Accountable parties & Scenarii illustrations
Accountable parties & Scenarii illustrations The tax is assessed to the buyer and is collected by the financial intermediary or by the custodian when there is no financial intermediary (OTC transactions). Article 235 ter ZD VI • The law provides that the FTT shall be assessed and paid by: – the oper
Slide 8: Accountable parties & Scenarii illustrations (2)
Accountable parties & Scenarii illustrations (2) Illustrations when transaction via ISP (Investment Service Provider) Transactional scheme 1 Transactional scheme 2 Transactional scheme 3 Liable party: Broker A Liable party: Broker A Liable party: Broker A Investor Investor Investor ISP X Broker A Ca
Slide 9: Accountable parties & Scenarii illustrations (3)
Accountable parties & Scenarii illustrations (3) Illustrations when there is no transaction via ISP (Investment Service Provider) Transactional scheme 4 Transactional scheme 5 Transactional scheme 6 Liable party: Custodian A Liable party: Custodian A Liable party: Custodian X Investor Investor Inves
Slide 10: Recent information published by Euroclear France, mandated as Tax Collector
Recent information published by Euroclear France , French Central Securities Depository mandated as Tax Collector Euroclear France has been mandated with the following functions in respect of the new tax: • Collect the tax declarations • Collect the tax from Euroclear France member Additional market
Slide 11: Next Steps
Next Steps Key dates - recall Preparation – Legal – internal and external • Approved by French Parliament and enacted on 14 • Documentation with your service provider March 2012 • Documentation with your client • Effective from 1 August 2012 • Client communication notes • First deferred declarations
Slide 12: efficiency, renewable energy and mitigation
IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have bee
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