p10 Gibraltar Day p 25 Profile: Sir Adrian Johns Nov/Dec/Jan 2010/11 GIBRALTAR INTERNATIONAL FINANCE AND BUSINESS 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 ISOLAS / FIDUCIARY GROUP Tel: +(350) 200 41200 • Fax + (350) 200 41201 Tel: +(350) 200 78363 www.deloitte.gi Tel: +(350) 200 76651 www.gibraltarlawyers.com EUROPA TRUST COMPANY www.fiduciarygroup.com Tel: +(350) 200 79013 • Fax + (350) 200 70101 www.europa.gi QUEST INSURANCE MANAGEMENT LTD. 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The fall from 35 per cent in 2007 has been quite spectacular and undoubtedly Lpartly responsible for the jurisdiction’s improved economic situation since. Economists have long argued that low corporation tax stimulates business activity for the greater good of society generally, because it encourages investment. In Gibraltar’s case, and being a services dominated Contents economy, this is more likely to encourage businesses to relocate or set up operations on The Rock, taking NEWS P6-10 advantage of the combination of an overall favourable tax environment – no capital gains, wealth or inheritance tax in Bid for insurance ‘billions’ addition - and the enviable lifestyle found in the southern Mediterranean. Moves to meet office demand They will be encouraged too by the growth in the Gibraltar Day – seeking high ground jurisdiction’s Gross Domestic Product (GDP) – rising 130 per cent in a decade - and a relatively low public debt, though predicted to rise, that is still only 15 per cent of PENSIONS P13-14 GDP, among the lowest in the world. New tax regime boost Little surprise then that Ministers expect low business tax to “create a bounce of interest” amongst companies relocating to Gibraltar. But at the same time, some ENERGY P16-18 nervousness has been shown at the lack of available quality Saving measures office space for these newcomers, even to the extent of threatening to kick-start a planned office development, reportedly long-stalled through lack of bank finance, by TAXATION P21-22 investing government money instead. Zero rate goes, but not firms It must be with some relief therefore, that a World Trade Center (WTC) Gibraltar is to be built, where 1,000 or more people will be employed, by end of 2012. The new PROFILE P25-26 building more than trebles the existing Ocean Village office Sir Adrian Johns - ‘personal relationships’ space, but, crucially, provides a large single floor area to accommodate a sizeable business – something that has so far been lacking. PEOPLE AND PLACES P28-29 The claim that this WTC development – the 335th to be granted an operating licence – will help put Gibraltar on TAXATION P30-31 the world stage, is more than promotional speak; it’s a truism. Benefits from new tax law The jurisdiction’s Finance Centre Council that reflects common business desires as well as concerns, is widely known to believe that more must be done to get the jurisdiction and its benefits better known, beyond one-off, big-time publicity efforts, such as the recent Financial Times GIBRALTAR INTERNATIONAL MAGAZINE special report on Gibraltar – good though that was. A recent survey of top UK fund managers focused on Published by Gibraltar No part of this publication Gibraltar and Malta as two potentially key jurisdictions to International Publications Ltd . may be reproduced without attract business, but found a lowly 2 per cent knew 1/5 Irish Town, Icom House, the written permission of the Suite 6/PMB 104 publishers. The publishers anything about what The Rock had to offer. In defence, PO Box 561, Gibraltar have tried to ensure that all some pointed to the fact that Malta had been aggressively information is accurate, but promoting its offering for several years. Editor emphasise that they cannot So if this jurisdiction is to be seen as a reputable, Ray Spencer accept responsibility for any international finance centre, people have to know why it [email protected] errors or omissions. The deserves that status. Drawing attention to Gibraltar by publishers accept no Sales responsibility for statements association with World Trade Centers across the globe is C.A. Tanner made by contributors or for only a first step. [email protected] any claim made in an Perception is everything as those waiting for Spain to advertisement. sign a Tax Information Exchange Agreement (TIEA) with Design Gibraltar this winter well know. Bil Brooks Gibraltar International If as a result, the stigma is removed of being regarded [email protected] Magazine is available on subscription, 4 issues posted by Spaniards as a ‘tax haven’, it will enable insurers, UK Agent: to: UK £24 - EU £32 - bankers, and company management firms to gain Tel: 0044 (0) 1993 703560 Rest of World £44. considerably from cross-border business unfairly denied to them thus far – even though Gibraltar is within the EU! © 2010 Gibraltar International And another Gibraltar plus will have been achieved; Publications Ltd. but will it then be well known? 4 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com NEWS Low tax Gibraltar pressing for share of UK ‘insurance billions’ Gibraltar could be the home refer specifically to Gibraltar agreed. “Being able to effect on income arising from insur- to billions of pounds of insur- and its special status within Part VII transfers will increase ance premiums to be excluded ance premiums and many the EU. Gibraltar’s value proposition from tax calculations. new jobs if the UK keeps to Correcting this omission significantly. That “places Gibraltar previous undertakings to would be “Gibraltar’s greatest “Using Part VIIs to trans- firmly at the forefront of ensure British insurers can opportunity for further sus- fer the assets and liabilities of potential business leader’s transfer their businesses to tained and sensible growth” one insurer in the UK to thoughts on jurisdiction of the territory. since the advent of ‘passport- another insurer in Gibraltar choice”, Quinn maintained. It is just one of several ing’ of goods and services fits well with the model of He is assisting an investment initiatives the jurisdiction’s throughout the EU, Steve robust yet responsive regula- bank with insurance interests insurance sector hopes will Quinn, Quest Group manag- tion that Gibraltar offers”, in Bermuda that expects to expand the market and ing director, told Gibraltar said Sykes. expand into Europe from reinforce Gibraltar’s position International. Yet, as Penny Hudson, Gibraltar early next year. as a mainstream onshore managing director of Caledonian And Quest has just helped International Finance Centre Insurance Management Services, establish Calpe Insurance and follows a series of London reminded: “Under UK rules, if an Company for the New meetings by Chief Minister insurer goes into run-off, the York based Transatlantic Peter Caruana with UK requirement is for the reinsur- Reinsurance Group, which Departments in October on a ance to go with it, and that can operates globally in 23 cities variety of financial services, be anywhere in the EEA – except and in Gibraltar will specialise EU, aviation, gaming and at present, Gibraltar.” in providing co-insurance to immigration issues. spread the risk for a primary A Tax Information Attracting business insurer – the first insurer of Exchange Agreement (TIEA) Hudson, who runs one of this type on the Rock. with Spain is also strongly seven Gibraltar insurance Quinn pointed out that "Firmly at forefront of business anticipated this December at leaders' thoughts" - Steve Quinn, management companies, has although the UK was its prime the separate Tripartite Quest. just sold her business with target market for new busi- Ministerial meeting also around £0.75bn under admin- ness, a new opportunity had involving the UK, which Speaking at the opening istration, to Randall & Quilter arisen with a specialist bonds would break the barrier to of his new Grand Ocean Plaza Investment Holdings, evidence and guarantees business estab- cross border financial services. offices, Quinn said “this will that insurers and major busi- lished for the Italian principals Insurers have to maintain sep- permit a 20 per cent growth in nesses in Gibraltar and in the of client, Hill Insurance. arate branches in both coun- Quest insurance management UK are interested in buying tries, because Spain still and broking business”, Quinn insurance companies to relo- TIEA with Spain regards Gibraltar as “a tax also noted: “We need to put cate to the jurisdiction. Being on the OECD “White haven”.