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Monday, May 21, 2012

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PRIVY COUNCIL JUDGMENT ON EX-CHIEF JUSTICES COSTS Following the Judicial Committee of the Privy Council's majority Advice to Her Majesty the Queen last November in relation to the removal of the then Chief Justice of Gibraltar, the matter of costs came before the Privy Council on the 2nd July 2010. In a Judgment issued on the 01.10.10, Master Campbell of the Privy Council recalled how the case was "very unusual." The United Kingdom's most senior judges had heard the matter and Lords Phillips, Brown, Judge and Clarke had advised Her Majesty that the Chief Justice should be removed from office whilst Lords Hope and Rodger and Lady Hale had held that the case for removal had not been made out and that the proper course was for him to resign.

Previously a specially convened Tribunal in Gibraltar had unanimously recommended the CJ's removal (Lord Cullen of Whitekirk, Rt. Hon Sir Peter Gibson and Rt. Hon Sir Jonathan Parker).

Prior to the substantive hearing in London, Lord Phillips had ordered that the Chief Justice's legal costs be covered by the Government of Gibraltar. At the costs hearing the Government had argued that the Chief Justice's replacement of the legal team who had represented him before the Tribunal had led to an unnecessary increase in costs. Read the Full Story
POWER STATION NOISE NUISANCE CASE In November 2009 the owners at the luxury Clifftop residential development over looking the Straits of Gibraltar across to North Africa found out that an Environmental Impact Assessment Certificate ("EIAC") had been issued for the construction of a £50,000,000 power station in the nearby Lathbury area. The Claimants complained that they had not been consulted as required by the relevant planning legislation and that the Environmental Statement and the EIAC had not properly dealt with the question of noise emissions.

Following the issue of a claim for judicial review in the Supreme Court of Gibraltar and strenuous negotiations the parties agreed terms and on the 27th September 2010 a Consent Order was made by the Chief Justice requiring the Development & Planning Commission to amend the EIAC to include a limit on the permitted noise level to 42 dB(A) at the nearest facade of any apartment in Clifftop House when measured in accordance with BS 4142.

The Government was ordered to pay the Claimants' costs. Read the Full Story
GIBRALTAR TO CUT COMPANY TAX BY 12% Company Tax in Gibraltar is to be reduced from 22 per cent to 10 per cent with effect from 1 January next year. The new tax regime, which has been on the cards for several years – but whose introduction was delayed in part by a protracted legal clash with the European Commission over the problematic question of ‘State Aid’ –  will also abolish the current tax exempt company arrangements. The reduction – details of which are set out in proposals for a new, amended and consolidated Income Tax Act – ends the historic distinction between “onshore” and “offshore” business which, in the past has proved particularly attractive to international investors.

“Together with the tax information exchange agreements being entered into by the Government, and Gibraltar’s full integration in the EU and compliance with EU financial services regulation, money laundering and co-operation rules, the new Tax Act completes Gibraltar’s 14 year transition from tax haven to mainstream European financial services centre,” Chief Minister Peter Caruana told a local newspaper. Read the Full Story
GIBRALTAR HOME-BUYING BOOM BOOSTS CONVEYANCING Conveyancing in Gibraltar is growing strongly. The tax advantages and other attractions Gibraltar offered the on-line gaming industry combined with the Rock’s burgeoning financial services sector created an unparalleled demand for accommodation. It came both from an inflow of expatriate professionals and workers with specialized skills and from the growing demand by Gibraltarians to own their own homes. Many of these were families who moved from Government rental housing to home-ownership and this is a trend which continues today.

Two decades ago only some 6 per cent of the Rock’s inhabitants owned the houses and apartments in which they lived; today that figure is nudging the 50 per cent mark, and although some of this growth has stemmed from “affordable” Government-sponsored housing schemes far more homes have been privately built. And it was further encouraged by a new prosperity and improved individual incomes which developed as the finance sector – and retail growth – took over as the economic engine room following the closure of the Naval Dockyard. Read the Full Story
RECORD REVENUES & GDP UNDERSCORE THE ROCK’S FINANCIAL STRENGTHS Reflecting record  revenues, a record surplus and a rising GDP which has topped the 5 per cent mark, Gibraltar’s Budget for 2009/10 not only underscores the extent to which the Rock’s financial sector has weathered the global economic crunch, but – albeit on a smaller scale – provides a set of accounts which most developed Western countries would envy. For individual Gibraltarians and local companies it was very much a ‘give-and-take’ budget, in which corporate and personal tax cuts were partly off-set by rises in service costs. But it will be welcomed by the growing number of international investors who are making the Rock their financial headquarters for the Budget also heralded the arrival of the long-promised 12 per cent reduction of corporate tax to a highly competitive 10 per cent.

However it also, finally spelt the end of the ‘exempt company’ regime which will cease with effect from January 1 next year and which for many years has proved attractive to some investors. Some uncertainty surrounds the possible impact of ending the zero tax exempt company, and the Government has set aside £10 million of the $27.7 million surplus announced in the Budget to buttress Gibraltar’s finances against any impact the abolition might have. Read the Full Story
HOW GIBRALTAR’S TAX-PLANNING REGIME CAN HELP YOU With no capital gains, VAT, inheritance or wealth taxes, added to various tax incentives and full membership of the EU allowing the passporting of financial services across Europe, Gibraltar presents a myriad of tax planning opportunities to companies, investors and private individuals alike. However, issues of residence and domicile are central to all offshore tax planning and require careful attention. Charles A. Gomez & Co. have the necessary expertise to help you avoid any of the pitfalls of relocation whilst ensuring your tax planning is really effective.

We and our clients accept that tax cannot be avoided – indeed we would never advise a client to try to do so. However, if used carefully and effectively, with professional guidance Gibraltar’s unique tax structure can help reduce your tax bill.

Our associate barrister-at-law, Nicholas Piñero is a fully accredited member of the Association of Taxation Technicians and can advise you on any local and cross-border taxation issues involving the UK and/or Gibraltar. Read the Full Story
News 2008 Gibraltar Business Forecast

2008 Gibraltar Business Forecast

Wednesday, 05 December 2007 00:00 Written by Charles A Gomez

C Gomez & CoAside from "world events," Gibraltar's economic progress in 2008 will largely be determined by the decision of the European Court of First

Instance with regards to the Gibraltar and UK governments' appeals regarding Gibraltar's ability to continue to have a separate tax regime.

 

In the most likely event that the Court finds that Gibraltar's fiscal regime need not mirror that of any European region, the Gibraltar Government should be able to put in place an attractive system for international businesses to replace the tax exemptions legislation which had served us so well since 1967. The court decision should have already been handed down and is therefore imminent.
Quality Business

The auguries are certainly good. Even with the demise of the old tax regime Gibraltar has continued to attract quality business. Lloyds TSB Offshore Limited is set to start up an operation additional to Lloyds' existing presence and three major betting companies have joined Gibraltar's select list of operators: this year William Hill, Bet 365 and Betfred obtained their Gibraltar Government gaming licences. The prestigious international securities and brokerage firm Van der Moolen has just set up an office here. Both the Financial Services Commission and the Gibraltar Regulatory Authority report continuing interest from new players wanting to operate from our City.

The Gibraltar Stock Exchange is expected to open its doors at 55 Line Wall Road within the next 12 months.

Finance centre practitioners explain that Gibraltar's well established regulatory system and experienced professional infrastructure give us an edge over our nearest competitors despite the delay in the European Court ruling.

Communications wise, both Gibtel and Sapphire Network have made vast improvements in international bandwidth with greater resilience to meet demand. Legal and accountancy practices continue to expand with one major very well placed professional outfit reporting that partners saw Gibraltar's prospects for 2008 as particularly well favoured.

It is understood that the Chief Minister has told civil service mandarins to expect a major productivity overhaul of the public service to cope with the possibility of increased business. There have long been rumblings of discontent from both the Chamber of Commerce and the Federation of Small Business regarding the question of efficiency in the public sector although the general view is that its professionalism has greatly improved over recent years as its ranks have been supplemented by graduates and other professionally qualified people.
Decline In Values

Increased finance centre business could resuscitate Gibraltar's property market which has recently seen a decline in values after a decade of almost continuous growth. A continuation of price increases will certainly not be good news for people on average earnings who have effectively been excluded from home ownership by spiralling prices. The likelihood, however, is that demand will stabilise and prices will come down.
It is probable that Gibraltar airport will be able to count with a London Heathrow slot in 2008. This will enhance Gibraltar's attractiveness as a financial base.

Main Street shops have suffered from lack of parking facilities around town when compared to the mega stores in neighbouring parts of Spain. The closure of the Naval Grounds car parks pending the development of the Mid Town building will, unless mitigated, exacerbate the problem. Talk of the "credit crunch" and mortgage rate increases have according to Main Street retailers also dampened spending habits in recent months. Strategic reductions in import duty rates may be needed to keep Gibraltar's retail sector competitive.

It remains to be seen whether the Ocean Village commercial complex will compete with the more established shopping districts but, in any event, Ocean Village promises to be either a spectacular success or the opposite; commercial rent levels and expectations in this development will ensure that there can be no middle ground.

The hope in the business sector continues to be for more government consultation and better planning in the New Year. In turn Government circles say that they expect a degree more imagination and pro activity from the business class. Hopefully in 2008 both sides will meet each other's expectations!