Gp12 GoveIrnmenBt RegulationRs Ap22 TouriLsm TNovA/Dec/Jan R 2012/13 INTERNATIONAL FINANCE l INVESTMENT l BUSINESS Gibraltar Day in London 2012 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. 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Contents ow as much a tradition as many other City of London events after thirteen years, the annual GIBRALTAR DAY p6 Gibraltar Day is seen as an opportunity for the Picardo cautions UK on tax whilst trying to woo Spain Ngovernment of the day to update UK Ministers and other parliamentarians and business leaders on progress NEWS p8 within the overseas territory. New team to put Gibraltar “more in your face” So it was something of a surprise when Chief Minister Fabian Picardo, just ten months into his role, took the FUNDS p10 opportunity to take the UK government to task strongly over Gibraltar Private Equity Funds its plans to introduce in two year’s time a “place of and Alternative Investment Fund Managers Directive consumption tax” on gaming. He did so whilst simultaneously thanking the UK for unswerving support in GOVERNMENT REGULATIONS p1 2 maintaining Gibraltar’s sovereignty against Spanish repeated Employment Registrations claims over the Rock. – Don’t be caught out! The Rock is the premier host to overseas on-line gaming companies and there’s a fear that some may decide to relocate PROFILE p14 to less well-regulated places in a bid to avoid the proposed Going back to roots helps bring real growth UK tax, while others may see business decline. And then George Bassadone talks to Ray Spencer many jobs may also go, significant office space vacated, and Gibraltar’s own low 10 per cent corporation tax take TOURISM p22 reduced! Projects boost historical appeal for private sector This comes at a time when, like other European countries, Gibraltar is working to mitigate the effect of the BUSINESS p26 world crisis on its economy. Not that the jurisdiction is doing Bike scheme proves popular for business badly – a 5 per cent growth in nominal Gross Domestic More aircraft landing Product this year is anticipated. Nevertheless, Marcus Killick, Chief Executive of BUSINESS ROUND UP p28 Gibraltar’s Financial Services Commission, notes in his Summer annual report that despite the poor EU economic HOTELS UPDATE p30 outlook, “Gibraltar’s economy remains firm, if vulnerable.” Paying for hotels is proving a problem The finance sector had proven resilient and continues to grow, but as he says, “albeit at a significantly slower pace than before the crisis began.” GIBRALTAR INTERNATIONAL MAGAZINE Killick pulls no punches: “Talks of Gibraltar being a ‘bubble’ are as inaccurate as they are foolish. We may be a Published by Gibraltar No part of this publication may be International Publications Ltd . reproduced without the written safe haven, but the tempest beyond our harbour walls still G7 Cornwall's Centre permission of the publishers. rages in earnest.” Although Picardo told the City, the Rock PMB 104 The publishers have tried to is not a hard place in which to do business, it clearly is not PO Box 561 ensure that all information is immune from the effects of the economic downturn all Gibraltar accurate, but emphasise that they cannot accept responsibility for around. any errors or omissions. The Little wonder then that he is pushing the UK to change Editorial enquiries publishers accept no responsibility its mind over the gaming consumption tax and also giving [email protected] for statements made by some urgency to reinforcing the Finance Centre team by contributors or for any claim made in an advertisement. taking on board top level specialists to promote key areas of Advertising enquiries insurance, funds and private client work. [email protected] © 2012 Gibraltar International The focus on BRIC countries – Brazil, Russia, India and Publications Ltd. Design China – is timely; those economies are growing by up to 10 [email protected] per cent per annum in sharp contrast to Europe, US and the UK. Financial services are regarded as the area with most UK Agent: potential to benefit from those four countries with spare Tel: + 44 (0)1993 703560 money to invest. Getting out in the marketplace has long been regarded by local professionals as the only means for Gibraltar to gain business and a key aim of the Finance Centre Council. London is one thing. But does it mean Gibraltar will need an office in Beijing, Hong Kong or Mumbai, for example, to capitalize on the opportunities? Ray Spencer 4 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com GIBRALTAR DAY Picardo cautions UK on tax whilst trying to woo Spain By Ray Spencer British Territorial Waters would “transform for the around Gibraltar by Spanish better the lives of people on efore a packed City of And Picardo noted: “The fishermen and police were part both sides of the international London reception, creeping attempts at of “A constant attempt by frontier that divides us.” Gibraltar’s Chief harmonisation of taxes in Spain to put obstacles in the The best way to achieve BMinister Fabian Europe are as anathema to way of Gibraltar’s own this would be to revive the Picardo appealed directly to Gibraltar as they are to the UK continued prosperity and Trilateral Forum under which the British Government to and the City in particular.” progress.” the UK, Spain and Gibraltar back down on revenue- discuss areas of common generating plans for a tax on interest and development, bets placed by its residents leaving aside all sovereignty from 2014 that could have matters. serious consequences for The Earlier in the day, Picardo Rock’s gaming companies and had spoken at the Finance employment. Centre lunch in the Guildhall He told an invited Library, and skirted the UK audience of nearly 1,000 at the gaming issue, saying simply Guildhall for Gibraltar Day that Gibraltar was the pre- celebrations in mid-October, eminent jurisdiction in the that whilst the UK had been establishment and regulation invaluable in defending of remote gaming. S E R Gibraltar’s sovereignty against “We are well poised to R O T aggressive Spanish challenges, remain so,” he declared, S E D that same UK Government “Enjoying the highest standards R U O was in danger of setting “an of regulation as well as an open L E C extremely dangerous and accessible labour market to A R G precedent” with its planned facilitate the operator’s need to : E R tax. recruit specialist skilled U T C I “A tax based on the place employees from outside P of consumption of a service Chief Minister Fabian Picardo makes his first address at the Guildhall lunch Gibraltar – either from within starts to really pervert the idea or outside of the EU.” of a common market and turn Since 1995 Gibraltar’s Even so, Picardo told his Gibraltar already had it into something it is not. If a gambling industry has grown audience that included for the some of the most advanced consumption tax can be from telephone betting to on- first time Ambassadors from telecoms infrastructure in applied to bets in the gaming line gaming and one of the several countries, including Europe and Gibtelecom – in industry, what would stop largest direct and indirect Malta, Singapore, Russia and which the government has a such a tax being imposed on employers – it accounts for Belgium, that he wishes still to 50 per cent stake – is a the consumption of financial around 20 per cent of GDP (as “engage positively with Spain founder shareholder and services based in the place of much as the finance centre and all our neighbours and participant in the Europe India residence of the ultimate itself) and provides jobs for European partners on issues of Gateway submarine cable beneficial owner that receives some 2,400 people, most of potentially mutual co- project from London to the benefit of such a service,” whom travel from nearby operation.” Mumbai.