European Commission to extend Gibraltar corporate tax probe

gibraltar

Gibraltar’s tax rulings and frameworks are to be further examined by the European Commission (EC), as European Union (EU) member states, notably Spain have complained about Gibraltar corporate tax regime favouring certain Gibraltar registered companies, who may have received illicit state aid.

The EC will investigate Gibraltar’s corporate tax regime, focusing on its corporate tax exemption policies, in particular those which enable registered companies to ask for advanced exemptions to corporate incomes that are generated from overseas territories.

After reviewing more than 160 tax rulings, the EC said it had concerns that potential rulings may contain state aid for private corporations, this would breach EU business policies and rulings by creating unfair tax conditions between EU member states.

In 2010 the Gibraltar government had introduced new amendments to its corporate tax system, which allowed registered or inquiring corporations to ask for advanced confirmation of whether certain income channels could be granted exemption from corporate taxation.

In 2012 Spain issued a complaint to the EC against Gibraltar’s corporate income tax act, stating that it had granted selective and pre advanced  tax exemption advantages to offshore companies, thus creating unfair corporate tax conditions  for registered companies.

The EC followed Spain’s complaint by opening an investigation into Gibraltar’s tax rulings regarding corporate tax exemptions from multiple income channels .

Check Also

Wilken - Copyright: stocking / 123RF Stock Photo

Executive hires further strengthen SKS365’s operations

SKS365, the international sports betting and gaming operator based in Italy which boasts €1.2bn in …

Watch: Joe Lee on the importance of collaboration

Head of GB&I at Paddy Power Betfair, Joe Lee has emphasized the importance of developing a collaborative relationship …

Peter Murray, Alexem Services: Adapting to industry technological changes is key

Regulation Technology, or RegTech, is increasingly becoming an integral part in ensuring operator compliance across …