"The mother of all paper cuts. Deals Sharp damage and scales with LUK."
Cost: 4 MP
Source: Equipping the Grimoire Core.
Paper Slash is a single target spell that deals 
Sharp damage to a single enemy target. This skill does not scale with MAT or even ATK, scaling highly with just the user's LUK instead alongside a small amount of base damage. Furthermore, despite being a magical attack it uses the target's DEF instead of MDF.
It can be useful as an alternative way to deal Sharp damage if the user has a sufficient LUK stat. Despite that though, it is counted as a magical attack, but still applies to the defender's DEF. It can possibly be used as a way to hit enemies with high EVA or other physical reflecting traits.
The following enemies can cast Paper Slash: