Financial Transactions Tax in the Oracle eBusiness Tax module
EU ministers have given the go ahead for 11 eurozone members, including France and Germany, to prepare a new financial transactions tax.
This of course can be accommodated by the eBTax engine, but will there ever actually be a requirement to calculate this new Financial Transaction Tax in Oracle?
The reason why I say this is that the majority of financial institutions use their own bespoke solutions to manage the trades taking place, and this is usually only recorded in Oracle as a GL entry. Is it even possible expect that Oracle could handle the huge volumes that are generated by the trades?
Having worked at some of the biggest financial institutions, I am fully aware of the ’empire’ building that takes place by certain individuals so that their own billing solutions will never be replaced, but these banks and brokerage firms should start consolidating their back end systems, so that instead of having 14 separate systems all generating invoices to their clients, they should feed the transactional data into Oracle and then have just one system creating the invoices. Not only will this reduce the maintenance and time taken for month closing but will open up the way to allow Oracle to be used for the tax calculation including both VAT and the new Financial Transactions Tax.