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Is Gibraltar Hiking Gambling Tax
Tax hike on the cards?
A dispute with a neighbouring mayor has brought forth some interesting facts and figures on the British enclave of Gibraltar, a financial services and online gambling jurisdiction at the entrance to the Mediterranean, and adjacent to Spain.
The publication Panorama reports that rumblings about 'The Rock's' involvement in online gambling from the mayor of neighbouring La Linea prompted it to make a few local enquiries regarding the business. The publication approached Dr Joseph Garcia, the leader of the Liberal Party and opposition MP on Gibraltar, asking for information on the turnover and tax paid by online gambling companies domiciled in Gibraltar.
Garcia responded: “We do not have the data on the turnover for the online companies. The latest information is that there are 18 companies based in Gibraltar, employing a total of 1,905 persons as at 18 September 2010, of which 274 are Gibraltarian, 981 are British, 110 are Spanish and 540 have other nationalities.
"There is no information on the tax paid by these companies. Many, if not all of them, have been exempt companies up to now. This is expected to change when the new tax regime comes into effect, where they would be expected to pay 10 percent.”
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