2009 Will Bring Prosperity To Gibraltar, Says Chief Minister

by Jason Gorringe, Tax-News.com, London

13 January 2009

In his New Year Address, Gibraltar’s Chief Minister Peter Caruana welcomed 2009 as a year for change in Gibraltar, and he voiced excitement at the prospect that the jurisdiction can finally implement long-awaited corporate tax reforms following the conclusion of the European Union State Aid Case.

Reflecting on the outcome of the State Aid case, which allowed Gibraltar fiscal autonomy over the UK, Caruana said, “2008 has seen Gibraltar, once again successfully come through some important threats and challenges. The biggest of these by far has been the European Union’s challenge to our right and ability as a country to have our own tax system separate from, and different to the United Kingdom’s tax system. This has been at the very core of our ability as a people, during the last 50 years, to create a successful economy that in turn has enabled us to prosper socially and, most importantly, politically in the face of external challenges to our political rights, wishes and aspirations as a people. Failure to win would have very severely undermined and disrupted all of these things. This threat, and the success in winning over it, therefore ranks up there with the recent threat to our sovereignty and political rights as a people.”

”So, we can now look forward with confidence to a continuing bright and prosperous future. The government’s success in winning the case in the European Court enables us to continue to prosper, to enjoy the high standard of living and of public services and amenities that we enjoy, and most importantly, to bequeath our children, grandchildren and future generations a successful and prosperous Gibraltar in which they too will be able to flourish. In short, we are able to remain masters of our own destiny and architects and builders of our own economic, social and political prospects.”

“The turmoil in the world financial system will inevitably and necessarily bring big changes in its wake. The global banking and financial services industry will never be the same again. Here too, our work and policy during the last 12 years to reposition our finance centre away from simple and volatile tax haven business into a finance centre of excellence, high reputation, high standards of regulation and the mainstream of European and international financial services will now pay Gibraltar even higher dividend than it already has. Our finance centre, which is at the very core of Gibraltar’s economic success, is accordingly, very well placed to benefit from the changes that will come to the global finance industry, to continue to develop, grow and prosper and to provide quality jobs for us and our children, now and in the future.”

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