Gp12 ITIEABs Rp2A 6 Insurance LTMAay/June/JRuly 2010 INTERNATIONAL FINANCE AND BUSINESS Port spending to stay on course 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 PIRANHA DESIGNS Tel: +(350) 200 41200 • Fax + (350) 200 41201 Tel: +(350) 200 45599 • Fax + (350) 200 52037 www.deloitte.gi www.pdg.gi EUROPA TRUST COMPANY QUEST INSURANCE MANAGEMENT LTD. Tel: +(350) 200 79013 • Fax + (350) 200 70101 Tel: +(350) 200 74570 • Fax + (350) 200 40901 www.europa.gi www.quest.gi INVESTGIBRALTAR OFFICE JYSKE BANK (PRIVATE BANKING) Tel: +(350) 200 52634 • Fax + (350) 200 52635 Tel: +(350) 200 59282 • Fax + (350) 200 76782 www.investgibraltar.gov.gi www.jyskebank.gi MONARCH AIRLINES SAPPHIRE NETWORKS Tel: +44 (0) 8700 405040 Tel: +(350) 200 47200 • Fax + (350) 200 47272 Tel: +(350) 200 47477 www.sapphire.gi www.monarch.co.uk www.flymonarch.com PYRILLIUM SOFTWARE LTD HASSANS Tel: + 44 (0)207 3213746 Tel: +(350) 200 79000 • Fax + (350) 200 71966 Tel: + (350) 200 61449 www.gibraltarlaw.com www.pyrillium.com NATWEST / LOMBARD TRIAY & TRIAY / TOTUS Tel: + (350) 200 77737 Tel: + (350) 200 72020 Tel: + (350) 200 46475 Tel: + (350) 200 76108 www.natwestinternational.com www.triay.com • www.totus.com www.lombard.com/gibraltar www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 3 May/June/July 2010 EDITORIAL COMMENT Volume 16 / Number 2 Putting it together t’s interesting that Gibraltar hosted a meeting with senior representatives of Jersey and Contents Guernsey to discuss matters of mutual interest, including the NEWS P6-10 Ifinance centre. TIEAs come under scrutiny Is this to be the start of a type Ship arrests growing of lobbying group to defend the interests of finance centres that have $1m for two arrests been labeled variously as ‘offshore More courts to solve legal issues tax havens’, ‘small offshore finance Sharing experiences centres’ and the like, usually with negative overtones? Apparently not. Guernsey’s requested fact-finding meeting had Jersey joining in too; and not a word has TAXATION P12-14 been spoken on the subject since by any participant, at TIEAs taking effect least in public. The possibilities of what such a liaison might achieve MARITIME P16-18 – if it became a reality – are intriguing. Port spending on course Chief Minister Peter Caruana told Hedge Funds Review in December that part of Gibraltar’s problem in Go-getting yards growing the finance centre was achieving greater awareness. “As a member of the EU through its PROFILE P21-22 association with the UK, Gibraltar has a particular Jimmy Tipping, Simply part of a team challenge in making sure its voice is heard”, he said. Given that the jurisdiction as a finance centre is small in the global scheme of things, making a meaningful NEWS P24 impact on prospective financial services businesses, hedge Giving learning a boost funds, new insurers and the like to get them to make their Airport ready for summer 2011 base in Gibraltar, is a tough call. Forging alliances with other similarly challenged finance centres could help. Constructive dialogue to get a INSURANCE P26-27 bigger communication clout - a voice to be heard - makes Moves to protect against failures sense, particularly given that there is sufficient potential business to go around for all small finance centres like Guernsey, Jersey and the Isle of Man. PEOPLE AND PLACES P28-29 Jurisdictions don’t have to compete head-to-head; but there’s sufficient need to differentiate each, whether on LAST WORD P31 tax, approach to regulation, innovation or infrastructure. A timely tale Gibraltar, for example, has benefits of “passporting” financial products within the EU; Jersey and Guernsey cannot. Indeed, Jersey’s finance centre brochure illustrates the point well by making a virtue of its EU non- GIBRALTAR INTERNATIONAL MAGAZINE membership, saying (perhaps rather injudiciously): “Jersey is not a part of the European Union and is therefore not Published by Gibraltar No part of this publication obliged to implement EU directives”! International Publications Ltd . may be reproduced without 1/5 Irish Town, Icom House, the written permission of the When major nations are seeking to shift some of the Suite 6/PMB 104 publishers. The publishers blame for the current struggling world economies onto the PO Box 561, Gibraltar have tried to ensure that all existence of offshore finance centres, then a collective information is accurate, but response with reasoned arguments seems a good move. Editor emphasise that they cannot Changing perceptions is key. Just about every country Ray Spencer accept responsibility for any is considered co-operative, or largely so, since the OECD [email protected] errors or omissions. The publishers accept no initiative encouraging worldwide tax transparency through Sales responsibility for statements Tax Information Exchange Agreements (TIEAs). C.A. Tanner made by contributors or for And Gibraltar achieved OECD “white list” status [email protected] any claim made in an last November; having now signed 17 TIEAs, with a advertisement. possibility of more to come. Design This needs to be trumpeted as often and as widely as Bil Brooks Gibraltar International [email protected] Magazine is available on possible, particularly since the authoritative City of subscription, 4 issues posted London Financial Centres Global Index in March UK Agent: to: UK £24 - EU £32 - inaccurately referred to The Rock’s ‘grey list’ status! Tel: 0044 (0) 1993 703560 Rest of World £44. Especially when that valuable piece of research on attitudes to financial centres worldwide uses the on-line © 2010 Gibraltar International views of thousands of people working within financial Publications Ltd. centres worldwide. 4 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com NEWS NEWS under three broad categories: dictions being assessed now including tax exchange of tilateral simultaneous tax -availability of information; includes Bermuda, Cayman information, regular contacts, examinations, service of Tax transparency agreements access to information, and Islands, Denmark, Germany, liaison and exchanges documents and cross-border exchanging information. Jersey and Monaco and the between regulatory authori - assistance in tax collection, to come under scrutiny results will be available later ties, taxation and anti money while respecting national Quick to respond this year. The UK is reviewed laundering issues and sovereignty and the rights Whilst giving recognition to both for Phases 1 & 2 in the policies.” of taxpayers and ensuring Gibraltar’s compliance with which brings together 91 only three TIEAs – with the addressed to other jurisdic - progress that has been made, second half of this year. They aim to conclude a extensive safeguards to pro - the operation and implementa - countries and territories, US, Greenland and Denmark tions to see if these are rele - the Reviewers are expected to All members of the TIEA in part to combat “fiscal tect the confidentiality of the tion of its new Tax Information including both OECD and have come into force. The vant for them”. identify areas of weakness Global Forum ultimately will or financial fraud” and also information exchanged. Exchange Agreements (TIEAs) non-OECD countries, is ini - remainder are waiting for the The object of the Global and recommend remedial be reviewed and “no inference to adopt Double Taxation “New provisions aim to is to be closely examined in a tially over three years and various other countries for - Forum’s review process is to actions “so that jurisdictions should be drawn about a par - arrangements – both would remove obstacles to effective Peer review process in the forms part of the internation - mally to adopt them. promote universal, rapid and can improve their legal and ticular jurisdiction from the be a real step forward in co-operation and exchange of second half of next year to al fight against cross-border The second stage reviews consistent implementation of regulatory frameworks as timing of the reviews”, the Gibraltar/Spanish relations. information, especially those ensure rapid implementation tax evasion. - which in Gibraltar is not the standards of transparency well as their exchange of Forum insists. related to bank secrecy legisla - of the arrangements with other scheduled to take place before and exchange of information. information practices”, a Still more TIEAs may Removing obstacles tions,” said Thorbjørn countries. On site visits the first half of 2014 - will be This can be achieved, the Forum briefing note explains. be signed by Gibraltar. Chief In the meantime, the OECD Jagland, Council secretary- Gibraltar has signed 17 Phase 1 of the Review will be conducted by assessment Forum says, “when interna - OECD Secretary-General Minister Peter Caruana has and the Council of Europe general. TIEAs, the latest being desktop research to examine teams that generally consist of tional tax co-operation allows Angel Gurría, said: “The said his offer to “sign a TIEA have agreed on an update to “The amending protocol Norway and Iceland just the legal and regulatory two expert assessors, coordi - tax administrations to effec - Global Forum has been quick with whatever country wants the Convention