Gibraltar to defend tax regime in court
Territory rejects EU ruling that states it is part of the UK and therefore cannot have its own tax regime
Gibraltar is to contest an EU ruling that states it is part of the UK, and
can therefore not have a more favourable tax system, The Telegraph reports
today.
The territory, where new FTSE100 gambling group PartyGaming is based, is to
take the European Commission to court to contest the EC’s suggestion that lower
rates of corporation tax in the territory constitute state aid, as it is part of
the UK.
The territory has British sovereignty, but is not part of the union of the
UK, and believes it can thus have its own tax system.
Changes to its tax laws recently reduced its effective overall tax rates for
all companies to less than 10%.