IRS Approves Gibraltar Withholding Tax Application

Panorama

19 October 2000

This story is reproduced by kind permission of Panorama at http://www.panorama.gi

An application about new withholding tax procedures on investment in US securities, made by Gibraltar, has been approved by the Internal Revenue Service of the United States.
The decision has now been taken to add Gibraltar to the list of jurisdictions whose "Know Your Customer" Rules have been approved under the IRS new regime for withholding tax on US investments.

"By obtaining this approval for its anti-money laundering procedures, Gibraltar joins a select band of jurisdictions whose financial institutions are able to apply for Qualified Intermediary status under the new US regime," said a Gibraltar government spokesman.

These new procedures will place heavy administrative and reporting requirements on banks and other intermediaries dealing in US securities. The Gibraltar government, the bankers association and the financial services commission have worked closely over the last few months in preparing the appropriate documentation for submission to the USA.

The new tax procedures become effective next January. The list of approved jurisdictions currently numbers 22 and includes major European finance centres. The fact that the IRS has approved Gibraltar's know-your-customer rules, after very vigorous vetting, is further proof of the quality and robustness of the anti-money laundering measures we have in Gibraltar and of the commitment in Gibraltar to maintain our jurisdiction in the leading pack of international finance centres, said Iain Currie, president of the Gibraltar bankers association.

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