The ruling of European Court of the First Instance on December the 18th enabled Gibraltar Inc. to breath a collective sigh of relief.
The Chamber congratulates Government on this landmark victory, and in the same breath asks that GOG give some early indications of what the interim Tax structure will be prior to the introduction of the said “across the board” 10% tax in 2010-11, when our tax exempt company status expires. Will it remain at the 2009 levels through to a universal change, or will it reduced in stages to reach the new rate of 10%?
It is extremely important in these turbulent times that Members are able to plan ahead knowing as early as possible the financial constraints they are operating under. The Chamber seeks clarification in this respect.
Knowing as we do that we can set our own tax rates we need to be wary that the new tax system is uniform for all sectors of the business community. The new system needs to be fully transparent. One rate for all Gibraltar based companies be they trading locally or overseas.
For credibility to be maintained we must have a “one tax fits all” policy. If not we run the risk of further proceedings to challenge our system. If our playing field is not level one cannot start to imagine the uncertainty another court case might costs us in delays and confidence in the market place.
So well done GOG, let us now collectively push forward with long over due marketing efforts to promote the benefits of our Jurisdiction, and to this end the Chamber is keen to offer any assistance to the Finance Centre. that may be needed.