GIBRALTFebA/March/RApril 2015 I NTER NATIONAL F I N A N C E n I N V E S T M E N T n B U S I N E S S Listing on GSX, Gibraltar’s new stock exchange 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 Tel: + (350) 200 50011 • [email protected] www.gibraltarfinance.gi DELOITTE QUEST INSURANCE MANAGEMENT LTD. 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Profile p16 Business round up p28 Unforgiving focus on priorities gets results Editorial Comment Maintaining EU connections provides 2015 challenge he concept of ‘fair play’ is very much a British thing, so we therefore having a shared policy and acceptance of each other – hope to gain by should perhaps be unsurprised that various countries around the adopting discriminatory tax measures; perhaps to appease Spain’s ideological world seem oblivious to the idea – and feel able to change the and political campaign over ‘ownership’ of The Rock. Tgame – ignore it even – whenever the opportunity arises. Such is There’s hope too of establishing Double Taxation Agreements with the situation British Gibraltar finds itself in when dealing with various several countries to ease doing business with Gibraltar companies in some countries over tax. situations, which must be good news for this New Year. More than two years ago, the then financial services minister told me But 2015 holds other challenges for the finance and gaming sectors that of his expectation for the imminent removal of this jurisdiction from a account for nearly half of Gibraltar’s economy. Public disclosure of beneficial handful of countries’ so-called tax ‘black lists’, a hangover from the deroga - interests in companies, and maybe also trusts, is a looming issue with Gibraltar tory ‘offshore tax haven’ label of yesteryear. In 2015, Gibraltar still holding out against a centralised registry amid security and legal concerns. That “expects” to make progress according to the present Minister, Albert Isola, position mirrors the ones taken by Bermuda and Cayman Islands recently in to end this discriminatory practice. going against UK Prime Minister David Cameron’s call for Overseas Territories Italy has been high on the target list and – like a half dozen or so other (OTs) to also establish central public registers. Unlike other OTs however, countries - still has not yet fully accepted that The Rock’s record and Gibraltar as part of the EU, could be forced to adopt such measures if present preparedness for tax transparency is amongst the highest in the world; the plans to extend the Anti-Money Laundering Directive are passed by the OECD rates Gibraltar tax information exchange performance equal to the European Parliament this spring. UK and Germany, for example, and the territory was an early adopter in full A continuing issue in 2015 will be how Gibraltar will be affected should a of the EU Tax Information Exchange Agreement Directive. proposed UK referendum next year result in a move to leave the EU. This along Portugal too promised early remedial tax ‘black list’ action in 2012, with other EU-related matters – not least the edge given by being able to but then changed the game by implementing a different interpretation of ‘passport’ services throughout all 28 Member States – will be targets for the acceptable countries with a new formula relating to comparative planned Gibraltar lobbying office in Brussels from Spring. Gibraltar’s corporation tax rates that in theory would adversely affect Ireland, Malta, government is undertaking an in-depth economic analysis “in order to best cali - Luxembourg and other countries, but in practice is unfairly only applied to brate our response to such a potential challenge in the future”, as Chief Minister Gibraltar. Fabian Picardo, put it in a New Year message. It is hard to see just what these countries – all part of the EU and Ray Spencer Published by No part of this publication may be reproduced without the written Gibraltar International Publications Ltd. permission of the publishers. G7 Cornwall’s Centre PMB 104, PO Box 561 Disclaimer Gibraltar Gibraltar International Publications Limited have tried to ensure that all Editorial enquiries information is accurate, but emphasise that they cannot accept responsibility for any errors or omissions, and that they accept no responsibility for [email protected] statements made by contributors or for any claim Advertising enquiries made in an advertisement. [email protected] Design [email protected] UK Agent: Tel: + 44 (0)1993 703560 © 2015 Gibraltar International Publications Ltd. Within the European Union Single Market 4 Gibraltar International www.gibraltarinternational.com News BangorBangor Business School – ExecutiveExecutive EducEducationation French TIEA not been signed. A DTA would CharteredCharterChartereded BankerBanker MBAMBA remove Gibraltar from the list. Tax agreements in ‘fair play’ However, DTAs present other difficul - ties. They work best where countries have a bid to neuter black lists similar type and level of taxation; the cake can be divided down the middle, each getting The OECD 2nd stage Peer Review of countries that operate “preferential” tax whatever is owed from the other. tax information exchange in practice, regimes with a higher level of taxation on Nevertheless, Isola revealed: “We are Cutting Edge and businesses from black listed countries. working extremely hard on DTAs - the private has judged Gibraltar “largely Portugal is an example, where companies sector is very keen on them - and we expect to compliant”, with just three aspects effectively are discouraged from doing have two under our belt in the first quarter of still to be remedied through law business with Gibraltar companies if they face 2015.” Asked if DTAs were necessary given Innovative Learning higher levels of taxation. the plethora of TIEAs, he observed: “I have changes this year. Greece, also within the EU where my own personal reservations, but I listen to multilateral tax information exchange applies the sector and I work with them closely and for the Financial Services Sector hat rating puts Gibraltar on a par with universally, has Gibraltar on its ‘black’ list. they believe there is good reason to go down the UK and Germany, but is in “It is sometimes argued that there is no actual this route.” T marked contrast to some other damage to Gibraltar companies caused by major financial services centres such as being on the list, but because it can DTAs client driven Luxembourg and British Virgin Islands, both be interpreted as a negative status, some One of the first DTAs is likely to be with the labelled “non-compliant”. By October businesses are put off dealing with our firms”, UK, because, as Isola explained: “When we Gibraltar had signed 135 tax information Jimmy Tipping, Gibraltar Finance director, speak to an EU country and say we would like exchange agreements (TIEAs) - 80 of which maintains. a DTA, they first ask whether we have one are active - with a total of 101 countries. Within the EU there should be no with the UK.” The case for DTAs is client Now Gibraltar is getting tough with barriers or impediments as in the case of driven; it is easier for Gibraltar businesses to countries that continue to have it on tax ‘black insurance companies passporting throughout say there are DTAs in place and there is also a lists’, and it is also pressing for a series of Europe. Sometimes it is more subtle; a network of international tax agreements. double taxation agreements (DTAs). particular benefit may not be available to A continuing concern is the possibility Local companies have identified six black listed countries.