Minding Gibraltar’S Business Intouch 1
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Issue 13 - Summer 2010 inMindingtouch Gibraltar’s Business The New Income Tax Act GFSB Second Breakfast Meeting Gibtelecom achieves EFQM ‘Recognised for Excellence’ accreditation A consumer’s view by a Gibraltar ‘High-net worth individual’ Fit note, not Sick note Minimise Business Risk - Choose the right I.T supplier Are Banks open for business? Valuing your business for sale A guide to managing currency risk Online Safety: Wrapping your business website in bubble wrap The State of our Tourism Product www.gfsb.gi Minding Gibraltar’s Business intouch 1 CONTENTS intouchIssue 13 - Summer 2010 Minding Gibraltar’s Business GFSB Breakfast Club GFSB promotes ISO standards Contents Interoute and Gibtelecom bring new telecommunications choice InTouch | Issue 13 | Summer 2010 to Gibraltar GFSB Celebrate European Parliament’s Decision to Exempt Micro-Entities from EU Accounting Burdens Almost a MAGIC WAND! GFSB 10 tips of what not to do in a Recession Editor’s Notes 05 Developing an effective anti- money laundering culture within a Meet the Board Financial Services Institution. 06 WEEE PARKS? About as much fun as a park full of wee. EVENTS GFSB Second Breakfast Meeting 07 www.gfsb.gi The New Income Tax Act 08 Gibtelecom achieves EFQM ‘Recognised for Excellence’ 10 accreditation A consumer’s view by a Gibraltar ‘High-net worth individual’ 12 Federation of Small Businesses Fit note, not Sick note 14 The UK’s Leading Business Organisation FINANCE Minimise Business Risk - Choose the right I.T supplier 18 Are banks open for business? 19 LEGAL Valuing your business for sale 20 A guide to managing currency risk 22 INFORMATION TECHNOLOGY intouch Online Safety: Wrapping your business website in bubble wrap 24 Editorial Director Stuart Rodriguez TOURISM Designed by The State of the Gibraltar Tourism Product 26 Piranha Designs Gibraltar COMMERCIAL Published by Natwest: Press Release 29 The GFSB 122 irish Town EUROPEAN UNION Gibraltar Tel: +350 200 47722 ESBA News 30 Fax: +350 200 47733 Email: [email protected] EDUCATION & TRAINING www.gfsb.gi Gibsights - A local touch to your visit 32 What is Mind Mapping? 32 Disclaimer ISO 9001: 2008 Accreditation 34 No part of this publication may be reproduced without the wirtten permission of the publishers. The Publishers have made every effort to ensure that all of the information within this publication is accurate, but emphasise that they cannot accept responsibility for any errors or omissions. The Publishers accept no responsibility for statements made by contributors or for any claim made through advertisements published in this magazine. Minding Gibraltar’s Business intouch 3 The portfolio of responsibilities have been allocated by the Board as follows: Chairman Charles Serruya Vice-Chairman Stuart Rodriguez Business & Commerce Stuart Rodriguez Finance & Tax Charles Serruya Employment Gemma Arias (Conditions of Employment Board) (Labour Advisory Board) Events Secretary Gemma Arias Environment Gemma Arias Legal Stuart Rodriguez Business start-ups/EU Funding Ian Torrilla/Gemma Arias (JLAG, EU Funding Board, Small Grants Board) Information &Technology Ian Torrilla (E-commerce Board) Education & Training Tony Lopez (Employment & Training Board) Membership Secretary/ Members Benefits Albert Langston Shipping/Port John Piris Charles Serruya (Port Advisory Board) Banking Michael Borge Health & Safety Tony Lopez (Health & Safety Board) Tourism Stuart Rodriguez (Tourism Advisory Council) Wholesale & Retail Craig Sacarello International Stuart Rodriguez (ESBA Board) Charles Serruya (FSB) In Touch Stuart Rodriguez Design & Branding Julian Byrne 4 inintouch Minding Gibraltar’s Business EDITOR’S NOTES editor’s notes This Summer edition meets the new these remain untouched locally, why? It of policing quite substantially and act as draft Tax Act head on as we write is business and business alone which a massive deterrant. extensively on the consequences has to take the burden of these changes and potential impact of this piece whilst the public sector appears to In our last In Touch, we announced several of legislation to Gibraltar business. remain immune to these. In other words new initiatives for our membership and does not Gibraltar Plc include the public these are starting to materialize with sector? Obviously not! Board Members taken an active part in Essentially, the burden to business getting these off the ground. Our new could be crippling at worst or a strain on Another unwelcome trend developing Breakfast Club has already seen two resources (both human and financial) at locally is the increase in business crime, breakfast meetings being held with our best. Most businesses will have to pay predominantly as a result of two high- third one due in September. The idea tax on profits before they are earned – yes profile armed burglaries within the space is to create a platform for members I did say before! The new draft penalty of as many weeks. This immediately raises in which to network with others and system is also not something to be taken the issue of CCTV which our Federation hopefully generate business opportunity. lightly. Upon receiving a request from the have been advocating for the last few Our GFSB Discount Club has also been Tax Commissioner for tax information, a years. Placing this campaign against the launched and members have been given business will be faced with a penalty of context of these two burglaries, would an opportunity to offer discounts on goods £200 if the information is not forthcoming they have happened if these areas had and services to other GFSB members. In in 30 days and up to £500 per day until been installed with CCTV? The answer turn, the Board will actively market these he is satisfied that he has received this is probably not. One other factor that is discounts at no cost to the business requested information. This could equate beginning to slowly impinge on our “way thus elevating the profile of a particular to a fine of up to £15,000 if a person of life” (excuse me for sounding a bit too business or product. Our aim is to takes 2 months to reply instead of one! American here!) - in which I really mean increase the benefits that we are able to We are unhappy that the burden of our our historical records of low business offer members and through competitive inevitable change to our tax legislation crime - is the severe global economic advantage as well as business protection. has been laid squarely on the shoulder downtown. With Gibraltar being seen of the business community. The reason as a “soft” touch even by our friendly As always, I hope that you enjoy your read. why I say this is because the Government Mayor from La Linea (with his “toll-road” Sector has made no palpable savings of masterplan) how do criminals perceive Stuart Rodriguez its own in order to share this burden. Are Gibraltar? We need to send the message Editor we the only country in the world - whilst in out that we will not countenance such the middle of the worst global recession abuse of our friendly territory. CCTV in decades - that actually increases its would obviously help in sending this minimum wage? Also, whilst other message out as well as reduce the cost countries are cutting public sector wages Minding Gibraltar’s Business intouch 5 Charles Serruya Stuart Rodriguez Albert Langston Gemma Arias Chairman Vice-Chairman board Michael Borge John Piris Ian Torrilla Suresh Mahtani meet the Tony Lopez Julian Byrne Helen Moberley Office Manager One step ahead Planning a strategy We can assist in developing strategic plans to help shape the success of your company including preparation of business plans, budgets and cashfl ows and subsequent monitoring and analysis of variances. We can assist you in identifying and developing your strengths and opportunities. For more information, call Eran Shay or Stephen J Reyes on: Tel: +350 200 41200, Nightline: +350 200 48282, Fax: +350 200 41201, [email protected] www.deloitte.gi Merchant House, 22/24 John Mackintosh Square, P.O. Box 758, Gibraltar © 2010 Deloitte Limited. Member of Deloitte Touche Tohmatsu 6 intouch Minding Gibraltar’s Business EVENTS GFSB Second Breakfast Meeting The second breakfast meeting was held on Friday 16th July at the Wisteria Room, Rock Hotel. World War II Tunnels Mr Richard Desoiza gave an interesting talk on the subject of the World War II Tunnels (www.rockandfortress.com). The talk was attended by ten members who enjoyed the talk and participated in a question and answer session. Sponsor This event was sponsored by the Rock Hotel and the GFSB would like to thank the Manager – Mr. Stephen Davenport for all his help before and during the event. Next Breakfast Meeting The next Breakfast Meeting will be held in September (date to be announced) and will be on the subject of e-commerce, internet banking etc. The GFSB seek to lay a small informal platform for its members to network and get to know each other. GFSB Chairman and Vice-chairman Charles Serruya and Stuart Rodriguez respectively attended the annual Federation of Small Business UK Conference held in Aberdeen, Scotland earlier this year. This was an opportunity to catch-up with our international contacts and also meet our colleagues from the European Small Business Alliance. Both attendees had the chance to meet briefly with the previous Secretary of State, Lord Peter Mandelson to discuss general business topics and he also enquired as to how things were on the Rock. Minding Gibraltar’s Business intouch 7 EVENTS THE NEW INCOME TAX ACT On 16 June the Government published the new Income Tax Act together with briefing and explanatory papers. These documents have been published ‘in draft’ to allow for comments in writing to the Chief Minister up to 23 July 2010. The Government anticipates that it will publish the Act as a green paper in August with the European Commission a transitional The definition of tax residence (‘ordinarily to be presented to Parliament in period during which the tax-exempt regime resident’) has been amended to cover would be phased out.