Addressing the Ability of Tax Systems to Accommodate Financial Product Innovation: So Far, Have the Measures Adopted Been Effective?

The author raises questions on the ability of tax systems to accommodate or respond to financial product innovations, by analysing whether they comply with three rules of thumb for tax policy design, namely: neutrality, simplicity and stability. From such a perspective, the author argues that the approach adopted contributes to having a more non-neutral, complex and unstable environment.