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Online Casino Companies in Gibraltar Are Not Threatened Anymore |
| As the European Court had removed the threat of increased taxation on Gibraltar-based online casino companies, there was a reason for them to celebrate. As online casino companies are all dotcom businesses, it has been easy for them to establish head offices in the low tax jurisdiction of Gibraltar. This has provided the companies with a significant edge on other sectors because they have not had to pay the UK corporation tax rate of 30 percent, creating massive savings for shareholders. But these significant tax benefits have been under threat from the European Union, which has been working to abolish Gibraltar’s exempt company tax regime.The commission said that by 2010 Gibraltar would have to put an end to its excused online casino company tax regime and implement a replacement tax regime instead. This raised the possibility that online casino groups based in Gibraltar could find themselves paying corporation tax of 30 percent. However, a recent European Court ruling has eased these fears. Gibraltar's 1969 constitution provides the territory with fiscal autonomy and the region should be able to continue providing online casino companies with an attractive tax regime. One of these online casino companies finance director said the ruling had removed the risk that his company and others based in Gibraltar would have to pay the full UK tax rate of 30 percent. |
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