Gib Government Confident That Business Tax Reforms Will Secure EU Approval

by Jason Gorringe, Tax-News.com, London

24 October 2002

Speaking during a visit to London on Monday, Gibraltar's Deputy Chief Minister, Keith Azopardi expressed confidence that the majority of the jurisdiction's business tax reforms will survive EU scrutiny.

Responding to criticisms from the European Union with regard to the Rock's corporate tax regime, the government in July unveiled proposals to replace its company profits tax with payroll and business property occupation taxes, to be topped up with profits taxes of 8% and 35% respectively for financial service and utilities companies. However, last week Competition Commissioner, Mario Monti announced that the proposals would need to be investigated on the astonishing grounds that they constituted unfair State aid to 'a part of the UK'.

However, Mr Azopardia appeared philosophical with regard to this latest development, commenting this week that: 'We are confident that the package stands up to scruntiny,' and adding: 'We want the package to be compliant with the international agenda and more importantly with state aid rules.'

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