p16 Legal p20 Regulation Nov/Dec/Jan 2009/10 GIBRALTAR INTERNATIONAL FINANCE AND BUSINESS Gibraltar Day Tenth Anniversary www.gibraltarinternational.com SPONSORS Gibraltar International Magazine is grateful for the support of the finance industry and allied services (with the encouragement of the Finance Council) in the form of committed sponsorship. We would like to thank the following sponsors: GIBRALTAR FINANCE CENTRE Tel: +(350) 200 50011 Fax: +(350) 200 51818 http://www.gibraltar.gov.gi DELOITTE HASSANS Tel: +(350) 200 41200 • Fax + (350) 200 41201 Tel: +(350) 200 79000 • Fax + (350) 200 71966 www.deloitte.gi www.gibraltarlaw.com SG HAMBROS PIRANHA DESIGNS SG Hambros Bank (Gibraltar) Ltd Tel: +(350) 200 45599 • Fax + (350) 200 52037 Tel: +(350) 20002000 • Fax + (350) 200 79037 www.pdg.gi www.sghambros.com QUEST INSURANCE MANAGEMENT LTD. EUROPA TRUST COMPANY Tel: +(350) 200 74570 • Fax + (350) 200 40901 Tel: +(350) 200 79013 • Fax + (350) 200 70101 www.quest.gi www.europa.gi JYSKE BANK (PRIVATE BANKING) INVESTGIBRALTAR OFFICE Tel: +(350) 200 59282 • Fax + (350) 200 76782 Tel: +(350) 200 52634 • Fax + (350) 200 52635 www.jyskebank.gi www.investgibraltar.gov.gi LLOYDS TSB MONARCH AIRLINES Lloyds TSB Bank (Gibraltar) Ltd Tel: +44 (0) 8700 405040 Tel: +(350) 200 50999 Fax + (350) 200 47346 Tel: +(350) 200 47477 www.lloydstsb-offshore.com www.monarch.co.uk www.flymonarch.com www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 3 Nov/Dec/Jan 2009/10 EDITORIAL COMMENT Volume 15 / Number 4 Low tax ‘heaven’ is the key hat’s it then; the stage is Contents set. From now on there NEWS P6-8 is going to be an annual TIEAs little to do with crisis! or bi-annual conference for all in Gibraltar’s Ten down and still growing TFinance Centre, judging by reactions New sea link follows air terminal to “The future – 2015” event in Innovative tax solutions needed October. So many good ideas came out of NEWS P10-12 the first event, which combined the More in-depth Campo study seven professional bodies in the Finance Centre Council Francis Cantos and Kerry Blight, its new chairman, that there is a Greater voice in Regulation determination to make it a regular fixture. With plain talking from the speakers – including the INVESTMENT P14 Financial Services Commission warning of higher charges Equities in, recession over and still greater oversight, countered by sector demands to ensure first that the FSC house was in order - no-one was LEGAL P16-19 left in any doubt that such an open forum was long Lawyers prosecute expansion overdue. Widening the legal spread A packed conference left many with standing room only and other leading lights in the business community REGULATION P20-21 absent. Being the first such event, there were clearly New EU rules give an ‘edge’ lessons to be learnt. The sheer volume of ‘fresh’ information imparted RECRUITMENT P23 between the professionals made obvious the potential for SRG & del Sol start up using the event as a showcase platform for interested parties beyond Gibraltar. GAMING P24-25 Underlying these points were the comments of several Euro Court rulings not enough in the finance centre on the contribution from deputy chief PEOPLE AND PLACES P26-27 minister, Joe Holliday; they described his words as ‘encouraging and informative’ even though, in effect, he INVESTMENT P29 largely replayed significant facts and figures supporting the Opportunity in Corporate Bonds progress of Gibraltar, that have been in the public domain for months! LAST WORD P31 Speakers repeatedly referred to the forthcoming Getting it half right corporation tax rate reduction - a low 10 per cent from 2011, down from 22 per cent now – as the key factor in driving significant further growth of Gibraltar within the EU. GIBRALTAR INTERNATIONAL MAGAZINE That and the switch in Gibraltar’s general perception- Published by Gibraltar No part of this publication from being regarded as ‘tax haven hell’ to become ‘low International Publications Ltd. may be reproduced without tax heaven’ - which will certainly follow from adoption of 1/5 Irish Town, Icom House, the written permission of the the raft of saviour OECD-inspired Tax Information Suite 6/PMB 104 publishers. The publishers Exchange Agreements! PO Box 561, Gibraltar have tried to ensure that all information is accurate, but More the pity then that the Chief Minister, who Editor emphasise that they cannot doubles also as Financial Secretary, was kept away this Ray Spencer accept responsibility for any time by other international commitments. [email protected] errors or omissions. The An invaluable future conference addition ought to be publishers accept no Sales responsibility for statements Peter Caruana’s personal insight and aspirations for the C.A. Tanner made by contributors or for future, much as he did at the Finance Centre lunch on [email protected] any claim made in an Gibraltar Day in London a week after this year’s local advertisement. conference. Design Bil Brooks Gibraltar International The Finance Centre Council may be a useful sounding [email protected] Magazine is available on board and advisory forum for the government on fiscal subscription, 4 issues posted and other developments. UK Agent: to: UK £24 - EU £32 - But delivering the message to a wider local forum will Tel: 0044 (0) 1993 703560 Rest of World £44. help reinforce the new-found feeling of strong © 2009 Gibraltar International interdependence amongst the varying professional Publications Ltd. members in looking forward to 2015. 4 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com NEWS NEWS an ill-informed, populace agenda and …do incalculable - and certainly uncalculated – TIEAs ‘very little to damage to the long term eco- nomic interests of our coun- tries and financial services do with crisis’ centres”, Caruana said. In a summer report Angel Gibraltar fully expects to City of London as part of In addition, as part of the will be very well placed, Gurría, OECD Secretary- have signed at least 18 Gibraltar Day celebrations. Trilateral Forum of Dialogue, because we have gone straight General, asserted: “For Tax Information Exchange At that time (when Spain, Gibraltar and the UK, to the relevant G20 jurisdic- decades it has been possible Agreements (TIEAs) shortly – Gibraltar International went are negotiating a TIEA and on tions” – US, France, Germany for taxpayers to hide income significantly above the num- to press), he confirmed that double taxation “preferably and the UK. and assets from the taxman by ber required by the ten TIEAs had been enacted by the end of this year”, The OECD says it will abusing bank secrecy and `OECD to be regarded as a including with Australia, New according to a Ministerial look at the appropriateness of other impediments to infor- territory “fully committed to Zealand, Ireland, Germany, joint communiqué. agreements, how quickly they mation exchange. This will no international standards of Denmark, Austria, France, The objective is “to com- come into force and whether longer be possible.” information exchange” and Portugal, the US and the UK. bat money laundering, terror- they are being effectively Caruana however, told substantially implemented. Several others are ini- ist financing and fiscal or implemented? his London audience: Although “well on tar- tialled waiting completion. financial fraud.” As soon as However, Caruana was financial crisis”. and “in the aftermath, politi- Corporation tax level from “Frankly, if there were more get” to meet OECD criteria, Gibraltar is expected to that TIEA is signed, Gibraltar scathing on “the new criteria, Recognising that greater cians are going into hyper 2011. Regulatory sovereignty powerful voices available to “we have not rushed for num- move to the ‘white’ list of ter- will - under Spanish law - be invented at the G20 requiring tax transparency is important, reform mode”. It was right, of countries should not be the smaller international bers as some other countries ritories that have adopted removed automatically from an arbitrary number of TIEAs he asked: “What is it about in order to avoid a repetition, undermined more than strictly finance centres to counteract, have done”, Chief Minister standards of transparency and its list of ‘tax havens’. …we must beware pretexts the absence of TIEAs in the consideration be given to necessary, by “others on more or at least to contribute, to Peter Caruana emphasised to exchange of information But as Caruana pointed being relied on to achieve last 15 years that has con- how regulation and banking distant shores who for G20 deliberations, some of a packed Finance Centre when the OECD reviews out, when the OECD came to things that have very little tributed to the collapse of should be done better. decades had agendas to halt these things would be much lunch at Drapers Hall in the progress on 20 November. its second stage review, “We to do with the global large banks in America and But Caruana said: “It is the advancement and predom- more constructive.” the need for banks in Europe vital we do not allow the inance of the City of London Nevertheless, Gibraltar to be rescued and propped up reforms that inevitably will and other British and non- would be “adopting whatever by their governments?” follow to undermine the British financial services consensus emerges in regula- Ten down and still growing He felt “it an example of sovereignty of countries to set centres”. tion and tax transparency” to the aftermath of the [world their own tax systems and There was “a great risk remain in the mainstream of The tenth anniversary of ness professionals, but also a economic] crisis being used to levels.” that politicians across Europe, international consensus in Gibraltar Day (October) cross-section of Gibraltarians advance long-standing and Gibraltar was phasing particularly those facing elec- order to continue to prosper celebrations in London this living in the UK.