It's a "maybe" I'm told, but the problem is...if it goes through, then the taxes will be applied retroactively. Just keep that in mind. Also, be aware of possible higher costs for borrowing short stock (makes sense, since the liquidity would dry up). Don
I received this by way of an email this mornning. " NOTIFICATION - FRENCH TRANSACTION TAX Interactive Brokers would like to inform clients of the French Financial Transaction Tax (FTT) enacted in March 2012 and which comes into force 1 August 2012. Key information regarding the tax is provided below: Tax Rate: The rate is currently set at 0.20% Tax Base: The tax is assessed on the purchase of certain French equities. The French Ministry of Finance has released a list of 109 French companies whose securities are subject to the FTT. The tax is due on the net position delivered on settlement date, as such purchases and sales which settle at a common depository will be eligible to be netted for determination of the tax. Effective Date: The FTT is applicable to trades of August 1, 2012. IB anticipates charges to customer accounts shortly after this date Transaction Types: The FTT will be applied to both exchange trades as well as delivery of shares on exercise of an option or future contract. The FTT may also be applicable to shares received from a corporate action; however at this time the full scope of the corporate action types subject to FTT is unconfirmed. For a current list of companies subject to FTT as of August 1, 2012 click here."