AnniversaryTenth issue p6 Air travel p16 The budget Summer 2008 GIBRALTAR INTERNATIONAL FINANCE AND BUSINESS Contact our website: www.gibraltarfinance.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 ABACUS FINANCIAL SERVICES LTD. HASSANS Tel: +(350) 200 73520 • Fax + (350) 200 48267 Tel: +(350) 200 79000 • Fax + (350) 200 71966 www.abacusgib.com www.gibraltarlaw.com BARCLAYS BANK TOTUS Offshore Financial Services (Gibraltar) Ltd. Tel:+(350) 200 76108 • Fax + (350) 200 76976 Tel: +(350) 200 52378 • Fax + (350) 200 79987 www.totus.gi www.barclays.com MARRACHE & CO DELOITTE Tel: +(350) 200 79918 • Fax + (350) 200 73315 Tel: +(350) 200 41200 • Fax + (350) 200 41201 www.marrache.com www.deloitte.gi PIRANHA DESIGNS EUROPA TRUST COMPANY Tel: +(350) 200 45599 • Fax + (350) 200 52037 Tel: +(350) 200 79013 • Fax + (350) 200 70101 www.pdg.gi www.europa.gi QUEST INSURANCE MANAGEMENT LTD. BESPOKEXECUTIVE Tel: +(350) 200 74570 • Fax + (350) 200 40901 Tel:+(350) 200 46328 www.quest.gi www.bespokexecutive.com JYSKE BANK (PRIVATE BANKING) INVESTGIBRALTAR Tel: +(350) 200 59282 • Fax + (350) 200 76782 Tel: +(350) 200 52634 • Fax + (350) 200 52635 www.jyskebank.gi www.investgibraltar.gov.gi LLOYDS TSB MONARCH AIRLINES Lloyds TSB Bank (Gibraltar) Ltd Tel: +44 (0) 8700 405040 Tel: +(350) 200 50999 Fax + (350) 200 47346 Tel: +(350) 200 47477 www.lloydstsb-offshore.com www.monarch.co.uk www.flymonarch.com SUMMER 2008 GIBRALTAR INTERNATIONAL 3 Summer 2008 EDITORIAL COMMENT Volume 14 / Number 3 Contents Taxing Executive air travel gets Midas touch – Aviation 6-7 times If it doesn’t feel like a crime, t’s a fact of life that surely it’s not - Regulation 11 tax always will be Help on hand to protect an emotional against rising interest rates – Insurance 12 talking point, particularly Investing well aids charity Iamongst people in - Funds Investment 14 business. It is of little Effect of economic uncertainty, tax cuts surprise that even 10 and capital spending - Gibraltar Budget years ago when this special 16-17 magazine was launched, the threat of involvement of the European Union in Gibraltar’s Around & About - a round-up of own corporate tax setting was prominent. people & places 18 The argument was that Gibraltar should not Gibraltar companies set to remain set its taxes differently from those of the UK that would amount to “material selectivity”. The an attractive option matter has ended up with the European Court of - Corporate Services 20-21 Justice and a decision has long been waited. Big returns for start-up The tax exempt status for businesses is being – Brokerage 22 phased out and it will end in 2010. So Peter Caruana faced a difficult situation when setting Economic strength real driver for Gibraltar’s current year budget. His decision to property - Profile 24-25 speed up the planned reduction from 31 per cent Interest grows in customers to 27 per cent this time leaves him hedging his - Banking 28-29 bets. The UK corporation tax rate is 28 per cent, Everything and nothing changes so not too dissimilar to Gibraltar, but it’s left - Last Word 31 some businesses disappointed. They believe it’s inconceivable that the Court could single The GIBRALTAR INTERNATIONAL MAGAZINE Rock out when it has already ruled in favour the Azores being distinct from mainland Portugal. Published by Gibraltar International No part of this publication Finance Publications Ltd. may be reproduced without Others have felt the reduction now should 1/5 Irish Town, Icom House, the written permission of have been steeper to signal Gibraltar’s confidence Suite 6/PMB 104 the publishers. The PO Box 561, Gibraltar publishers have tried to in the Court result. As it is Caruana has simply ensure that all information said it should soon be 12 per cent, if not a Editor is accurate, but emphasise preferred 10 per cent, believing there will Ray Spencer that they cannot accept [email protected] responsibility for any errors continue to be freedom to act. or omissions. The The Isle of Man and Jersey of course, boast Sales publishers accept no C.A. Tanner responsibility for zero corporation tax, but other complementary [email protected] statements made by measures, such as VAT, do add a burden, so it’s contributors or for any Design claim made in an not as straight-forward as it may seem. Bil Brooks advertisement. The decision to change tack so The Rock is [email protected] Gibraltar International perceived as a low tax territory rather than a no Publisher Magazine is available on tax one must be right – all companies understand A.B. Tanner subscription, 4 issues that taxes on profit must be paid – it’s a measure posted to: UK £24 - EU £32 UK Agent: - Rest of World £44. of success. The Lodge, Court Road, Maidenhead, A Court decision is needed to remove Berkshire, SL6 8LQ © 2008 Gibraltar Tel: 0044 (0) 1993 703560 International Finance uncertainty – and it’s needed now! Fax: 0044 (0) 1628 630316 Publications Ltd. 4 GIBRALTAR INTERNATIONAL SUMMER 2008 AVIATION AVIATION the eye of those supplying ships’ parts. London, and the City with the option of “Vital parts can be flown to a helicopter link to Battersea, rather than Gibraltar within a few hours rather than use the capitol’s major airports, as well Executive air travel waiting a few days for land delivery and as regional airports for a wider reach. clearances,” Paul enthuses, noting that it “If you want to be in England for can cost a ship owner $US50,000 a day 4.30 pm on a Friday, we can make sure for a vessel to sit in port. More frequent you arrive at a time as close as possible and freight to get and larger cargo loads could be to that and in most cases there is no accommodated with the proposed difficulty in agreeing a landing time”, second cargo aircraft. Gibjets promises. International adminis- Although Gibraltar’s range of tration, aircraft maintenance and air the Midas touch! passenger flights has increased since the crews are handled by Mayoral, which recent Cordoba tripartite agreement on has gained a reputation for reliability aircraft and border matters, none seem and punctuality since being established ven before the formal launch particularly interested in freight business. in 1985. of its pioneer private executive With the Falcon’s range of 3,000kms And with two hours or so notice, Minister for Transport Joe Holiday jet hire service for Gibraltar, and speeds of up to 900km an hour, with Paul Butler at Gibjets’ launch private clients can be airborne from new company Gibjets was the ability to fly with stops in different Gibraltar such is the co-operation of the putting together a business countries en-route can make the need to first take an aircraft from terminal’s management and ground han- Eplan to add a second aircraft – this time executive jet option a viable one. Gibraltar. dling teams. “Basically, how quickly can for the business freight market. However if a client wants to start out in UK destinations include Biggin Hill you pay us – as soon as we have the Anything from small packages to Istanbul for example, then Gibjets will and Northolt for London to provide a money, the plane will be ready to go”, components and machinery up to three locate an aircraft in that area without the lower cost and speedier route into central Paul told Gibraltar International. tons payload could be considered with a minimum of three flights a week linking the Rock to European centres in Germany, Italy, Ireland and, of course, Still more flights on the cards as Spain and the UK. Described by some as “The man Manchester reunites with ‘The Rock’ with the Midas touch”, Paul Butler, the property developer and owner of fter a gap of just over two years, Peter Caruana, BA says it is looking at a European destinations”, he said. Queensway Quay marina, has linked low-cost airline Monarch is possible increase for next summer. As an example, the Government was with Malaga-based aviation experts re-launching services between BA took on the route after its former actively exploring with Iberia the possi- Mayoral Executive Jets to develop Gibraltar and Manchester, franchise partner GB Airways earlier this bility of an increase in frequency on private flights to and from The Rock. with a three flights a week year sold the Gibraltar connection to Gibraltar-Madrid services, which last They are targeted at financial and Aservice from after the summer. easyJet. Snr Porcel, who also met with year saw a reduction to two rotations per business clients in need of a personalised The move has been made possible by Gibraltar Tourist Board officials, con- week. and responsive service. the delivery of a new aircraft into the firmed BA’s commitment to maintaining The number of arrivals by air last Monarch fleet and services will operate the Gibraltar route for both Business and year was 179,267, an increase of 8.88% RIGHT FOR on Monday, Wednesday and Friday from Economy class passengers. over the previous year. 12 September, in addition to the airline’s easyJet committed to operating the Commenting on the re-launch of THE FUTURE The Gibjets leased twin-engine e16,000 depending on the landing fees at Gibraltar – London Luton and Gatwick 16 flights per week London Gatwick Manchester flights, Monarch’s managing Falcon 100 carries up to six passengers chosen airports.