A Taxing Matter...

Though Britain's Chancellor (and possible successor next year to Tony Blair), Gordon Brown has frequently indicated his support for the EU's and other attempts to tighten the reins on the world's small offshore finance centres, he appears happy to bend the rules when it suits him.

The financial double standards of the dour Scot was underlined recently by his plans to tempt internet gaming companies to re locate to Britain and the disclosure that tax concessions which he has introduced have attracted many of the mega-rich, who for years sought rehige for their wealth in the secrecy of Swiss bank accounts, to the UK. One third of those ap pearing on the UK's "rich list" are non-British nationals.

Brown's welcome mat of tax con cessions rolled out for the world's billionaires is in sharp contrast to his dog in the manger attitude to similar fiscal enterprise by jurisdic tions such as Gibraltar, Isle of Man or Jersey.

"Britain, with the special attrac tion of tax incentives for billionaires from overseas, is fast catching up [on Switzerland] as a new refuge for the rich," a recent analysis in the Simday Times suggested. Seven of the country's wealthiest superrich are foreign born — drawn to Britain by the fact that in settling there they do not face taxes on their earning overseas, it points out. And, as a result, Britain now has more billionaires per capita of population than the United States — traditionally the home of the world's wealthiest.

The revelations highlight a po tential dilemma for Gibraltar, touched on by international tax expert Chris White in a significant book released at a launch here last month. Though the Rock's financial sector continues to flour ish, it will need to change to meet new challenges, partly from the EU's attacks on offshore finance centres — whether or not these are sustained — and partly from other factors. White, tax partner at Hassans, points out in Gibrailar: International Financial Centre.

Atthesame time he highlights the benefits still available to the grow ing band of millionaires and high net worth individuals (HNWls) who have chosen the Rock as their tax domicile.

(Though no official figures are tion of the handbook is no less significant. Before joining Hassans, he spent 25 years working for the Inland Revenue in Britain and most of this time was spent as an inves tigator in offshore avoidance. Not quite — but almost — a reversal of the old adage which suggests that it is wisest to "set a thief to catch a thief." Certainly he probably knows more about both sides of "avoidance" than anyone else of the Rock.

After a period as the officer in charge of the Midland Special Office, White was seconded to Gibraltar and he advised the Gov ernment on taxation for three years before joining Hassans in 1997. Called to the Bar in 2000, he now advises clients and others in the Hassans partnership on Gibraltar's tax system and its interaction with other local legislation as well as its relation to the tax set-ups of other jurisdictions.

Published by Tottel Publishing and endorsed by one of Britain's top tax and accountancy partner ships, the 236-page guide is the most comprehensive to date and incorporates details of the extensive tax changes and developments Gi braltar's tax regime has undergone over the past few years. Taking in both European and UK legislation the user-friendly volume covers such topics as;

• the information tax planners need to know about corporate governance;

•a detailed summary of the Gibral tar's financial regime;

• a chapter on E-commerce;and

• details of the latest money laun dering regulations available for their numbers, local financial experts 'guestimate' that at least 300 have homes here and that applications for registry in the qualifying category continue to grow.Multi-millionaire entrepre neur and developer Greg Butcher — who expects his luxury Ocean Village to become home to a string of super-rich, believes that as many as 1,000 or more will eventually make their homes in what he envis ages as the Med.'s new Monaco.)

White, arguably one of the most knowledgeable experts on inter national taxation on the Rock, was clearly an ideal choice of senior partner James Levy QC to revise his own seminal work on the Rock's taxation and, indeed, the writer acknowledges that much of the fundamental material is based on Levy's original text.

But White's own contribution to what is in effect the fourth edi-

Perhaps significantly given the amount of work which Hassans does with high net worth individu als and the tax benefits Gibraltar can offer. White dangles our tempt ing attractions in the early pages of the guide.

Gibraltar, he points,out can offer an oversea investor—either corpo rate or individual — "a beneficial tax regime which can be used in a variety of ways to undertake busi ness transaction with maximum tax efficiency."

But, he adds, Gibraltar's cor porate tax regime is undergoing change.

"Challenges by the EU to the previous exempt and qualifying companies regime have resulted in the cessation of the qualifying com panies tax regime," he writes.And, pointing to the European Union's decision to contest Gibraltar moves to abolish corporate tax on earnings White stresses that"while the issue is being decided in the courts and agreement has been reached to allow a limited number of exempt companies."

The fact that Gibraltar does not impose capital gains tax, a wealth# a turbulent, fast changing world, there's a rock-solid offshore location that is costeffective, well regulated and accessible. And with the unique advantage of being in the European Union. This potent place is Gibraltar.

As a leading law firm, Hassans has steered many clients to the benefits Gibraltar offers, whether they are global corporations or private individuals of means.They find us expert, innovative, commercially-minded and client-focused.

Easy to deal with, too. There may be many miles of ocean between us but we're only a mouse-click away. Visit our website at www.gibraltarlaw.com or email us at lnfo@hassans.gi.