The court of the European Union in Luxembourg has ruled in favour of Gibraltar's state. It has allowed Gibraltar to impose a 15% corporate tax in the profits of companies along the coastline. Gibraltar is a tourist destination that includes an industry for online gaming as a base for operations of the British territory.
The said ruling served as a response to the European Commission’s challenge that its objection was based on Gibraltar's fiscal autonomy from United Kingdom. It was in 2002 when the new system on corporate tax was proposed by Peter Caruana, Gibraltar's Chief Minister, for the territory. The European Commission (EC), charged the said companies because the territory is considered as part of the UK and they should be subject to corporate tax rates. Caruana has defended that the 1969 Gibraltar's constitution gives fiscal autonomy to the territory.
On the other hand, the challenge made by the European Commission has ended by the decision against Gibraltar in 2004. Their judgment has annulled that decision but the EU court dismissed the European Commission’s conclusion about the Gibraltar and its relationship with the UK. The EU court has drawn the 2006 decision on Azores’ tax regime that the political and administrative status of Gibraltar's is separate from the government of UK.
Meanwhile, the Gibraltar-based online gaming companies are PartyGaming, 888 Holdings and Mansion and it is said that they are listed in London Stock Market. This industry has employed 12% or more of the territory’s overall workforce.
The said ruling served as a response to the European Commission’s challenge that its objection was based on Gibraltar's fiscal autonomy from United Kingdom. It was in 2002 when the new system on corporate tax was proposed by Peter Caruana, Gibraltar's Chief Minister, for the territory. The European Commission (EC), charged the said companies because the territory is considered as part of the UK and they should be subject to corporate tax rates. Caruana has defended that the 1969 Gibraltar's constitution gives fiscal autonomy to the territory.
On the other hand, the challenge made by the European Commission has ended by the decision against Gibraltar in 2004. Their judgment has annulled that decision but the EU court dismissed the European Commission’s conclusion about the Gibraltar and its relationship with the UK. The EU court has drawn the 2006 decision on Azores’ tax regime that the political and administrative status of Gibraltar's is separate from the government of UK.
Meanwhile, the Gibraltar-based online gaming companies are PartyGaming, 888 Holdings and Mansion and it is said that they are listed in London Stock Market. This industry has employed 12% or more of the territory’s overall workforce.
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