Yay! Good one Gibraltar government and the UK. Click here.
Government of Gibraltar and United Kingdom of Great Britain and Northern Ireland v Commission
THE COURT OF FIRST INSTANCE ANNULS THE COMMISSION DECISION ACCORDING TO WHICH THE PROPOSED REFORM OF CORPORATE TAX IN GIBRALTAR CONSTITUTES UNLAWFUL STATE AID
This is an excellent result. Gibraltar and the UK have rightfully asserted the case with the EU for the Gibraltar government to determine its own policies and not be regarded as some little hick region of the UK.
For anyone who doesn’t click on the links, the whole issue is about Gibraltar’s ability to set its own tax regime, distinct from that of the UK. A judgement against Gibraltar would have resulted in a severe setback on the investment in Gib by financial and gaming companies, affecting local jobs and our economy here.
Interestingly, from the construction side of things, we have seen the reduction in spending – or in some cases downsizing – of some of the financial/gaming companies, as they have recently laid off staff and reduced to minimum office space. Hopefully, the companies that were worried about the impact of this ruling will now regain their confidence in investing in Gib.
It’s worth a national holiday. Thanks to the Government of Gibraltar and to the UK for fighting the case – and not least, thanks to the legal team for tackling – and winning against – Euro-bureaucracy.
Edited to add: the holiday declared for the 5th January 2009 has now been moved to 12 January.