The UK government, of which Gibraltar is an overseas territory, has accepted the European Union recommendation to abolish Gibraltar\’s Exempt Company tax regime, leading to fears of betting companies leaving the island in bulk.
Gibraltar has been given until 2010 to abolish the tax-free scheme and from February 2005 the number of beneficiaries is capped at December 2003 levels.
Gibraltar government might introduce an EU sanctioned low tax structure to replace the Exempt Company tax regime.
“If there is an identical tax rate in Gibraltar as in the UK, then you can foresee a lot of UK-based companies moving back,” said John Anderson, chief executive of Gibraltar-based 888.com.
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