has not entered into any Double Tax Treaties with other
countries, but has some arrangements with the UK for avoiding
double taxation of income.
signed a total of 18 Tax Information Exchange Agreements -
17 of those in 2009.
Ahead of the G20
London Summit in 2009, the government of Gibraltar released
a statement repeating its longstanding commitment to exchange
of information on the basis of the current OECD model agreement.
confirmed that Gibraltar had committed to the OECD standard
on tax transparency and that it had concluded negotiations
on the text of an agreement with the United States of America,
and the operative parts of a text with another of the largest
shares the view that international co-operation in tax matters
has become increasingly important, and will inevitably and
necessarily be an ingredient of the new financial order that
will emerge in the aftermath of the current global financial
crisis. Gibraltar remains willing to participate in exchange
of information on the OECD model basis," said the statement.
between the US and Gibraltar was signed by US Secretary Tim
Geithner and Gibraltar Chief Minister Peter Caruana in London
in advance of the G20 Summit.
The Tax Information
Exchange Agreement (TIEA) with Gibraltar provides the United
States with access to information it needs to enforce US tax
laws, including information related to bank accounts in Gibraltar.
The TIEA was the
first of its kind for Gibraltar and permits the United States
to seek information from Gibraltar and vice versa on all types
of taxes in both civil and criminal matters.
As with all agreements
to exchange information, only specific tax authorities are
allowed to receive and send information.
pursuant to the TIEA may be used only for tax purposes, and
the tax authorities must safeguard the confidentiality of
information exchanged pursuant to the TIEA.
The TIEA allows
the United States to ask for criminal tax information relating
to any taxable year and for civil tax information relating
to taxable years beginning after 2008.
Under this agreement,
Gibraltar obtains the same rights from the United States.
The TIEA with the
US entered into force on December 22, 2009.
A second TIEA with
Ireland was signed in June 2009, and further TIEAs with New
Zealand, Germany, the UK and Australia were signed later in
the year. Gibraltar was elevated to the OECD's 'white list'
of territories which have "substantially implemented"
the internationally agreed tax standard in October 2009, having
signed a total of 13 TIEAs.
In July 2009, at
the third Ministerial Meeting of the Forum of Dialogue between
Gibraltar, Spain and the UK, Gibraltar and Spain agreed to
cooperate more closey with regards financial services and
taxation, including the exchange of information on tax matters
to aid in the investigation of tax crimes. The countries also
agreed to establish liaison and exchanges between regulatory
authorities, and increase cooperation on taxation and anti
money laundering issues and policies.
In his 2009 budget
speech, Caruana confirmed that a 10% corporate tax would apply
in the jurisdiction, and that the Exempt Company regime would
end by the end of 2010.
2004, a Memorandum of Understanding on exchange of information
was entered into between the UKís Financial Services Authority
(FSA) and Gibraltar's Financial Services Commission (FSC).
The Memorandum establishes a formal basis for co-operation,
including the exchange of information and investigation assistance.
The agreement commited
both regulators to providing full assistance within the limits
of the respective laws of the two jurisdictions, defining
confidentiality constraints and setting up procedures and
liaison points so that information requests can be handled
speedily and efficiently.
In July, 2004,
it was announced that the Malta Financial Services Authority
(MFSA) and the Gibraltar Financial Services Commission had
entered into a Memorandum of Understanding on exchange of
information. The Memorandum was signed in Malta on June 30,
2004 by MFSA Chairman Prof. J.V. Banister and Mr. Marcus Killick,
Chairman and Commissioner of Gibraltarís Financial Services
The MOU set out
to establish ďa formal basis for co-operation, including the
exchange of information and investigative assistance in the
fields of banking, insurance, investment services and the
provision of professional trusteeship and company management
services, and the exchange of information on supervisory practices
and techniques.Ē During Mr. Killickís visit, bilateral talks
were held on how regulatory and supervisory collaboration
between the two organizations may be further enhanced, including
proposals for reciprocal visits by staff and other means of
improving mutual understanding of the operations and supervisory
techniques of the organizations.
Also in July, Gibraltarís
Financial Intelligence Unit (GFIU) was formally admitted as
a full member of the Egmont Group during the Groupís Annual
Plenary session held recently in Guernsey, further enhancing
the jurisdictionís credentials in the fight against global
money laundering activities. The Egmont Group, which has a
current total membership of 94 countries, was established
in 1995 and brings together anti-money laundering organisations
or financial intelligence units from all over the world. The
Group aims to improve communication and co-ordination between
the various agencies.
applied for membership in 1998 and whilst the GFIU was found
to be fully compliant by the Egmont Group, its application
was put on hold due to an objection from Spain to Gibraltar's
inclusion as a full and separate member of the group. However,
at a Plenary meeting of the Group held on 23 June 2004 Gibraltar
was unanimously accorded full membership in its own right.