Gibraltar's tax system is to be overhauled in a major way to remove the existing discrimination between residents and non-residents. This forms part of the Gibraltar government decision to meet the OECD requirements on harmful tax practices.

The government here, in consultation with the finance centre, has been doing considerable preparatory work "and we are confident we shall be able to give the undertaking that is required of us...by modifying our tax system and our laws," said chief minister Peter Caruana.
This would be done in a way that "will completely enable our finance centre to survive."
Mr Caruana said that it was "absolutely essential" that the problem be resolved, as non-compliance with OECD requirements would put Gibraltar on a black list, with a series of sanctions that could make it incapable of operating.

We are in a position where we have to act, he added. The government would be taking action by compulsion.