Gibraltar’s deputy chief minister Keith Azopardi told a gathering in London he expected the package of reforms to be approved by the EU, the FT reported today.
Pressure on the UK colony to reform its policies originally came from the OECD in its drive to eliminate harmful offshore tax practices and improve transparency.
It was stepped up when the European Commission launched a state aid inquiry into the planned reform of Gibraltar’s company taxation laws.
The main point of contention is the concession granted to offshore companies that allows them to pay no tax for 25 years, while local companies are subject to tax at a rate of 20% to 35% on profits
The reforms entail the abolition of company profits taxation, replacing it with a payroll tax, (£3,000 per employee), and a business property occupation tax. Financial services and utilities would face top-up taxes on profits at 8% and 35% respectively.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states