* Collection bill could fall as scope of tax cut
* Clearing houses in non-participating countries in
(Adds more detail on costs, market-making)
By Huw Jones
LONDON, Oct 19 Collecting a long-awaited EU tax
on financial transactions could cost up to 8 million euros ($8.8
million) in Germany alone, a European Union document showed on
Ten EU countries, including Germany, want to tax stock, bond
and derivatives transactions as a way for the financial sector
to raise funds after the huge taxpayer bailouts it received
during the financial crisis.
The financial industry has been waiting to see how the
financial transactions tax (FTT) would be collected and the
The EU document includes the findings of an unpublished
study by consultants Capgemini for Germany's finance ministry
which showed that total costs for financial institutions in the
first year would be an estimated 7.75 million euros, but would
"In the long term, the personnel and material costs might
not exceed 1.6 million euros," the EU document seen by Reuters
The EU executive was asked last week by the 10 countries
backing the tax to come up with a new proposal that will cut
back on the type of transactions that will be covered initially,
which would bring down the cost of implementing the levy.
The document said that Austria had estimated its
implementation costs would be less than a million euros.
Italy and France have already introduced a transaction tax,
and collection costs for their national levies amount to 250,000
euros and 21,000 euros, respectively, the document said.
Slovenia estimates its costs would range from 1.5 to 2 million
euros. Germany would face much higher initial costs because
trading volumes are much higher.
Using existing clearing and settlement houses to collect the
tax wouldn't be enough to capture all transactions and hence
revenue, meaning financial firms would also have to build up
their own collection systems, it added.
"To cover all transactions taxed by a future FTT anyhow, a
system of self-assessment by financial institutions will have to
be put in place, either as an addition to a centralised system
or as the core system of tax collection," the document said.
"An adequate level of legal enforcement of the tax in each
participating member state needs to be ensured."
Some clearing houses will not be in countries applying the
tax and "would need a commercial incentive" to calculate how
much tax should be paid, the document said.
"It could be an incentive for foreign market infrastructures
to behave compliant in order to avoid the liability of their
Britain, home to the EU's biggest stockmarket which trades
shares listed across the bloc, is not participating in the tax.
It was impossible to assess the costs of setting up a new
"utility" to collect the FTT, which was first proposed by
Germany and France in 2012 but has missed several deadlines for
implementation due to concerns over its application and impact.
($1 = 0.9107 euros)
(Reporting by Huw Jones; Editing by Rachel Armstrong and Susan