Gibraltar Taxes Upheld

01/02/2009		Gibraltar Taxes Upheld
Home History Games News Dictionary		The tax battle in Gibraltar has finally been resolved, to the relief of many online casino companies that based their registration and licensing out of the small country. After a long standing battle debating with the European Commission, a decision has finally been made in favor of current low taxation conditions, allowing the little Mediterranean nation to keep their taxes as they are. The battle has a significant history, having developed in 2002 when the European Commission decided to pursue a change in the taxes, attempting to increase the 15% tax levy on all profits on offshore companies which (conveniently) decided to base their businesses in Gibraltar for the break. Claiming that the taxation standards gave said companies, many of them internet gambling groups, an unfair advantage over their British based competition, the UK Commission took their arguments to a European Union court to have it decided- nearly seven years ago. The final decision was mainly supported by a 1969 constituional element that gives Gibraltar fiscal autonomy from it’s mainland governor. This autonomy has prevented Gibraltar from being subjected to the higher UK taxation for corporate profits. A previous decision was reached in 2004, which has been overturned by last week’s ruling. Luxumbourg’s court maintained the autonomy, negated the ’04 call. The intact and complete separation from the UK government supported the decision, as did a comparison to a similar case regarding the Azores, an archipelago belonging to Portugal. Effected online gambling companies include the well-known and popular 888 Holdings Plc, Party Gaming Plc, and the Mansion Group. Some surveys measure as many as 12% of residents of the country employed by internet casino groups.

01/02/2009

Gibraltar Taxes Upheld

The tax battle in Gibraltar has finally been resolved, to the relief of many online casino companies that based their registration and licensing out of the small country. After a long standing battle debating with the European Commission, a decision has finally been made in favor of current low taxation conditions, allowing the little Mediterranean nation to keep their taxes as they are.

The battle has a significant history, having developed in 2002 when the European Commission decided to pursue a change in the taxes, attempting to increase the 15% tax levy on all profits on offshore companies which (conveniently) decided to base their businesses in Gibraltar for the break. Claiming that the taxation standards gave said companies, many of them internet gambling groups, an unfair advantage over their British based competition, the UK Commission took their arguments to a European Union court to have it decided- nearly seven years ago.

The final decision was mainly supported by a 1969 constituional element that gives Gibraltar fiscal autonomy from it’s mainland governor. This autonomy has prevented Gibraltar from being subjected to the higher UK taxation for corporate profits. A previous decision was reached in 2004, which has been overturned by last week’s ruling. Luxumbourg’s court maintained the autonomy, negated the ’04 call. The intact and complete separation from the UK government supported the decision, as did a comparison to a similar case regarding the Azores, an archipelago belonging to Portugal.

Effected online gambling companies include the well-known and popular 888 Holdings Plc, Party Gaming Plc, and the Mansion Group. Some surveys measure as many as 12% of residents of the country employed by internet casino groups.