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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 Investor Funds: A Boost for Gibraltar’s Burgeoning Funds Industry

Investor Funds: A Boost for Gibraltar’s Burgeoning Funds Industry

Wednesday, 14 April 2010 17:16 Written by Charles A Gomez

Gibraltar Hedge FundsTwo of Britain’s leading hedge funds are to switch their operations to Gibraltar in the face of increased taxes on profits and staff bonuses in the United Kingdom – burdens which could become even heavier if after the May the 6th General Election.

The two are understood to manage investments of more than $1 billion and will become a major force in Gibraltar’s burgeoning funds industry – established less than a decade ago with a single fund capitalized at less than £5 million – a sector which since then has become an integral part of the Rock’s investment scene.

The switch comes as Gibraltar’s legal services community anticipates more opportunities offered by proposed EU funds legislation as well as what it believes to be the increased attractiveness of the Gibraltar jurisdiction. There will also be considerable opportunities in Islamic finance as the jurisdiction promotes the possibilities of Shariah compliant hedge funds.

The decision of the two big players to move their operations to the Rock is also a confirmation of the praise in December last year by the influential Hedge Funds Review. “Gibraltar’s tactics have been to pursue slow, steady growth, taking time to build relationships with new partners,” it said. “The proliferation of hedge funds and the expected continued growth of this sector of financial services could help give Gibraltar a much-needed boost in its efforts to become a mainstream EU hedge fund domicile.”

The growing importance of the industry, with current managed investments already estimated to have passed the £1  billion mark, was stressed  recently Financial Services Commission CEO Marcus Killick. “Gibraltar consistently punches above its weight in the finance industry,” he said. “This is especially true in the funds industry that has shown tremendous growth over the last few years.”

Gibraltar’s fund regime, particularly the Experienced Investor Fund regime is considered to provide a safe balance between regulation and operational flexibility and is expected to be well received in the global international funds market.

 

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