News


 16.06.2008

 Dubai and Cyprus sign regulatory agreement

 The Dubai Financial Services Authority (DFSA) has entered into a Memorandum of Understanding (MoU) with the securities regulator of Cyprus, the Securities and Exchange Commission of Cyprus (CYSEC).

The CYSEC monitors the supervision of the capital market in Cyprus. It licenses, monitors and regulates investment firms, regulated markets, collective investments schemes and their management companies.

It also monitors and supervises the issuers of securities listed on the regulated markets and monitors the securities transactions in the country. It approves company prospectuses and takeover bids.

It is predicted that this bilateral relationship will grow in importance as more financial services companies join the Dubai International Financial Centre (DIFC) from Cyprus, as both regulators rely on the quality of regulatory standards administered in the other’s jurisdiction.


 14.06.2008

 EU and Liechtenstein anti-fraud negotiations continue

 The European Commission and Liechtenstein have conducted further negotiations on a proposed Anti-Fraud Agreement.

According to Liechtenstein's government, the negotiations, which were staged in Vaduz on 25th April, took place in a "constructive atmosphere".

Prime Minister Otmar Hasler said after the meeting: "We have made significant progress today on many questions. By joining the European Economic Area, we have chosen the path of European integration, because it is the best guarantor of our sovereignty," the Prime Minister continued.

One of the aims of the negotiations is to regulate cooperation on tax matters.


 12.06.2008

 Cayman Islands responds to UK Parliament's offshore report

 The Cayman Islands Financial Services Association (CIFSA) has sought to correct what it considers as a “misrepresentation” of the standards of regulation within the UK’s Overseas Territories. The UK's Public Accounts Committee suggested that the standards of financial regulation in most of the Territories were not as good as those which exist in the UK Crown Dependencies such as the Isle of Man and Jersey.

Eduardo Silva, Chairman of CIFSA responded to the statement: “CIFSA generally welcomes discussions on offshore centres because it improves the level of information on the important role of jurisdictions like the Cayman Islands. But we also feel that on occasions like this it is equally important to correct any misrepresentations, particularly those may impact international perceptions of the standards of regulation in the Cayman Islands," he commented.


 08.06.2008

 TNK BP wins tax rebate in Russia

 Joint Russian-British oil exploration firm TNK BP has won the right to a tax refund worth RUB9.7bn (USD406mn) in Russia.

A Moscow arbitration court has decided that the company is entitled to the refund because it overpaid value-added tax in the year 2006. Under Russian tax law, export businesses are exempt from the 18% VAT.

In November 2006, the company paid USD1.44bn in back taxes to the Russian government to settle a tax dispute relating to the 2002/3 tax year.


 01.06.2008

 UK/India film co-production agreement completed

 Negotiations between the UK and Indian governments have been completed to which will enable a UK-India film co-production agreement to begin. As part of the agreement, UK Trade & Investment (UKTI) will also run a series of workshops for Indian filmmakers.

The agreement offers filmmakers an economic incentive, providing access to benefits of national status for their films. In the UK, jointly-produced films will receive the same tax benefits as UK-only productions.

Films with a budget of less than GBP20mn will receive 20% tax relief, with larger productions qualifying for 16% tax relief. Producers will also get access to two funds run by the UK Film Council.

As a direct result of the treaty, it is expected that 10 UK-Indian co-productions will be made within the first two years.


 09.05.2008

 UK HMRC announces VAT changes

 HM Revenue and Customs has announced the introduction of a new Schedule 10 to the VAT Act 1994, effective from 1st June 2008.

In explanation, HMRC has said: "Schedule 10 to the VAT Act 1994 deals primarily with the option to tax supplies of land and buildings and was introduced following the European Court’s ruling that the UK had to tax the construction of non-domestic buildings. Following a series of amendments needed to block various avoidance schemes; this legislation has become increasingly more complex to follow. The new Schedule 10... greatly improves the layout of the legislation as well as simplifying the language."

For a complete summary of the changes, visit the HMRC website

If you would like more information on company registration in the United Kingdom and other jurisdictions, click here


 09.05.2008

 'Blacklisted' Netherlands Antilles on agenda at EC

 Alex Rosaria, Netherlands Antilles Secretary of Finance, has announced that he will hold talks with the European Commission regarding his state's inclusion on negative fiscal lists of some European Union (EU) member states.

Nations including Portugal, Poland, Greece and Italy have blackllisted the Netherlands Antilles, considering the state a “tax haven”.

“Calling us a tax haven is inaccurate and a totally misguided labeling of our country," Mr Rosaria stated. "In fact, the Netherlands Antilles complies with OECD and EU regulations making it a first class international business and financial services jurisdiction."


 08.05.2008

 Ukraine to join WTO

 Ukraine has informed the World Trade Organisation (WTO) of its acceptance of its membership agreement and will join the WTO officially on May 16.

Following more than a decade of negotiations, formal notification of Ukraine's ratification of the accession protocol was submitted to WTO Director-General Pascal Lamy on 7 May. The Ukrainian parliament had ratified the WTO accession protocol on April 10.

Ukraine will become the trade bloc's 152nd member.


 07.05.2008

 OECD welcomes tax information exchange agreements

 The Organisation for Economic Cooperation and Development (OECD) welcomed two new bilateral arrangements for the exchange of information for tax purposes, between Guernsey and the Netherlands and between the Isle of Man and Ireland.

This brings to 14 the number of such agreements signed since the beginning of 2007, with further new agreements expected shortly.

Paolo Ciocca, Chair of the OECD’s Committee on Fiscal Affairs, said, “The trend towards greater transparency and tax cooperation continues as more and more countries and jurisdictions implement the OECD standards.

“Recent events have put international tax evasion in the spotlight, demonstrating the pressing need for action to tackle tax compliance issues in an increasingly borderless world. These agreements will better equip their signatories to address all forms of tax abuses."


 05.05.2008

 UBM to become tax-resident in Ireland

 United Business Media plc (UBM) has announced plans to relocate its tax residency from the UK to the Republic of Ireland to take advantage of what it described as a "less complex system of taxation".

A new UBM holding company is to be created which is UK-listed, incorporated in Jersey, but resident for tax purposes in Ireland. If approved by shareholders, the new structure is expected to become effective on 30th June, 2008.

According to UBM, the new structure reflects the development of UBM into an international business-to-business media and news distribution organisation, which operates in more than 30 countries worldwide and now generates more than 85% of its profits outside the United Kingdom. UBM’s major international brands include PR Newswire, Game Developer Conference, Interop and CPhI.


 23.04.2008

 UBS boss expresses optimism

 Outgoing chairman of UBS, Marcel Ospel, has claimed that the worst of the financial turmoil that has engulfed the Swiss bank is over.

Mr Ospel, who is departing after UBS made $37.4bn (£18.5bn) of mortgage-related losses, told investors that market conditions were improving.

UBS is among the world's top banks, and has been worst hit by the so-called 'credit crunch'. Dissatisfied shareholders have been asked to approve a $15bn capital increase at the firm's annual general meeting (AGM) in Basel.


 06.04.2008

 UK Government announces Finance Bill

 The Finance Bill 2008, which enacts many of the measures announced by Chancellor of the Exchequer Alistair Darling in the budget last month, has been published.

"Today's Finance bill furthers the progress this Government has made in building a stable, competitive economy that supports a high level of enterprise and growth," commented Financial Secretary to the Treasury, Jane Kennedy, on the publication of the bill.

"Measures in this bill will contribute to a more sustainable future, and continue to support our goals of fairness and opportunity for all," she added.

Further details on the bill will be published on the Treasury and Revenue & Customs websites as it progresses through parliament.


 26.03.2008

 Malta-Singapore tax agreement comes into force

 An agreement between Malta and Singapore for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to taxes on income has come into effect. The agreement is expected to contribute to a further expansion in trade between the two sides.


 22.03.2008

 New EU Rules for VAT on services

 The European Council has announced new measures on value-added tax (VAT). These include new rules on the place of supply of services, in order to ensure that they are taxed in the member state where the service is used.

Also, the changes include the possibility for certain service providers to reduce their compliance costs by fulfilling their reporting obligations in a single member state.

Additionally, the package provides methods of improving cooperation between member states to prevent unauthorised tax avoidance. In general, the VAT package will become active 1 January 2010.


 18.03.2008

 New Dubai 'Exempt Company' regulations released

 The Dubai International Financial Centre (DIFC) recently released its new Exempt Companies Regulations for public consultation. The new regulations are designed to help financial institutions perform securitisation transactions using Dubai's legal and regulatory framework.

Governor of the DIFC Dr Omar Bin Sulaiman commented: "With the increasing number and growing sophistication of transactions taking place in the Dubai International Financial Centre, the DIFC has again proved its commitment to international best practices - this time in the area of securitisation and other structured finance transactions."


 15.03.2008

 UK Budget 2008 - stamp duty changes

 In his annual Budget statement on 12 March, UK Chancellor of the Exchequer Alistair Darling announced changes to stamp duty charges, part of a commitment to reduce the administrative burden on business. The changes remove stamp duty charges from the majority of share transfers, making administration much easier.

It is estimated that the change will reduce businesses' stamp duty administration costs by £13.8 million per year. The change took effect from 13 March 2008.


 13.03.2008

 Liechtenstein monarch warns on offshore reforms

 During the recent opening of Liechtenstein's new Parliament Building in Vaduz, Prince Alois reaffirmed that the jurisdiction will continue to improve regulation of its financial sector regulation. However, he pointed out that such improvements will not compromise individual privacy.

"The Liechtenstein financial centre has already undertaken considerable reform efforts in recent years," he told Parliament. "But more reforms will be necessary, not only to ensure the competitiveness of the financial centre for the future, but also to enhance it."

"At a time when other states are increasingly invading the privacy of their own citizens... the need of citizens for a stronger protection of their privacy is great," the Prince added.


 19.02.2008

 UK Companies Act 2006 - commencement timetable

 The UK Government announced details of the final commencement timetable for the Companies Act 2006 on 13 December 2007 which is available from the Department for Business Enterprise and Regulatory Reform website.

The Government also announced that there will be no amendment of Tables A to F of the Companies Act 1985 in April 2008 after reviewing these Tables against provisions of the Companies Act 2006 coming into force on 6 April 2008. It has been concluded that none of the regulations in the current Tables (as amended on 1 October 2007) are in conflict with those provisions being commenced.

The Government did consider whether there was a conflict between Part 12 of the Companies Act 2006 (Company Secretaries) and regulations in Table A for private companies regarding the appointment and duties of secretaries. Part 12 sets out that there is no requirement for a private company to appoint a company secretary. It concluded that there is no conflict.


 17.02.2008

 Investment potential in Belize highlighted

 The Belize Trade and Investment Development Service (BELTRAIDE) has announced its Action Plan for the coming year, which seeks to continue to unlock Belize’s potential for more investments, business opportunities and job creation.

According to BELTRAIDE’s Executive Chairperson, Lourdes Smith, to make this happen, the Service will focus on three strategic areas: Investment Promotion, Entrepreneurial Development and Marketing.

According to BELTRAIDE, it has, with the support of the government, over the last ten years, attracted over 1.1 billion dollars worth of investments.


 15.02.2008

 London Agreement comes into force May 2008

 The London Agreement, which will make patenting in Europe cheaper by reducing post-grant translation costs, is due to come into force later this year after France deposited the instrument of ratification with the German Ministry of Justice on 29 January.

The London Agreement was concluded in London on 17 October 2000 with the aim of creating a cost attractive post-grant translation regime for European patents. The Parties to the Agreement undertake to waive the requirement for translations of European patents to be filed in their national language. This change is expected to benefit small and medium-sized enterprises in particular.


 14.02.2008

 Progress on new tax system for Antillean islands

 Significant progress has been made in discussions between senior civil servants on a new fiscal scheme for the Netherland Antillean islands of Bonaire, St. Eustatius and Saba for when they attain a new constitutional status, it has been reported.

The BES islands have been negotiating their status as “public entities” of the Netherlands, and the results of the meeting will be pivotal if the December 15 target date is to be met, the St Maarten Daily Herald reported.

It is hoped that a final decision on the tax proposals will be agreed during further consultations, which will include the Dutch government.


 14.02.2008

 Hong Kong-Mainland tax deal signed

 Hong Kong and the Chinese Mainland have signed the second protocol to the Arrangement for the Avoidance of Double Taxation & Prevention of Fiscal Evasion with respect to Taxes on Income, it was announced this week.

Hong Kong's Secretary for Financial Services & the Treasury, Professor KC Chan, signed the agreement with Deputy Taxation Commissioner Wang Li in Beijing this week, further clarifying which Hong Kong firms should pay Enterprise Income Tax on the Mainland.

The tax arrangement was formally signed on August 21, 2006, and launched on December 8 that year, but the two governments differed on the interpretation of certain parts of it. After negotiations, they agreed on the amendments and initialled the second protocol last September.


 14.02.2008

 UK proposes changes in residence and domicile tax rules

 Wide ranging changes to residence and domicile tax rules to restrict the sheltering abilities of offshore trusts and companies in relation to capital gains tax and to prevent various methods of remitting funds to the UK tax-free are being proposed.

HM Revenue and Customs recently published draft legislation in relation to the changes to residence and domicile tax rules, which were proposed in the last Pre-Budget Report.

The changes aim to restrict the sheltering abilities of offshore trusts and companies in relation to capital gains tax and to prevent various methods of remitting funds. They will affect not only non-domiciliaries with offshore income and gains in their own name, but also those who have established offshore trusts and companies, or who are beneficiaries of them.

The new rules are scheduled to take effect from 6 April 2008.


 12.02.2008

 New e-services launched by Mauritius government

 Forty-eight additional e-Services are now available via the Mauritius Government Web Portal, it was reported last week. The new eServices will facilitate links and interaction between the population and the public sector, providing a wide spectrum of services relating to applications for retirement pensions, development permits, applications for training courses and other activities offered by various Ministries.

Other services such as reporting cases of alleged domestic violence, applications for environmental complaints, and online submission of yearly returns to the Mauritius Revenue Authority are also available. Applicants will be able to track their applications.


 17.01.2008

 New IBC Act for St Vincent and the Grenadines

 The government of St Vincent and the Grenadines published its new International Business Companies Act 2007 on Tuesday 15th January 2008. Among the key provisions of the new Act are:



 11.01.2008

 Six percent growth in Mauritius economy predicted

 The government of Mauritius has said that it expects the economy to grow by 6% in 2008. The growth in GDP is likely to be led by the financial intermediation and tourism sectors. However, when the sugar industry is removed from the figures, growth for 2008 is forecast at a more modest 5.6%.

According to the latest issue of Economic Indicators, released on January 9, financial intermediation is expected to expand by 7.6%. With a forecast of 975,000 tourist arrivals for the coming year, the hotels and restaurants sector is predicted to grow by 8%.

The government anticipates a 3% growth in construction, a reduction on the 15% increase in 2007, which was mostly due to more construction of hotels and Integrated Resort Scheme projects.


 10.01.2008

 Russian tax authorities ‘blacklist’ Cyprus

 The Russian government has reportedly placed Cyprus on on a blacklist of uncooperative territories.The move is intended to deter Russian companies from setting up offshore and repatriating income back to Russia tax-free.

At first, this blacklist was said to contain 59 jurisdictions, and included offshore territories such as the Cayman Islands and the British Virgin Islands. The list also contained some EU countries, but has now been reduced to about 40 countries after the governments of countries such as Ireland, Luxembourg and Switzerland reportedly lobbied the Russian authorities to be excluded from the list.

The Cypriot government has begun an approach to Moscow over the issue. The Finance Minister, the Cypriot Ambassador to Russia and the head of Inland Revenue all believed to been in discussion with their Russian counterparts.


 09.01.2008

 Finance minister comments on Bahamian economy

 Bahamas Minister for Finance Zhivargo Laing has spoken on the jurisdiction's economic performance in 2007, and looked to the future.

Speaking recently at the Bahamas Business Outlook Seminar, Mr Laing suggested that the economy needed to grow by between 3.5% and 4% in 2008, in order to meet forecasts supported by the International Monetary Fund (IMF). This follows a slowdown in 2007 to 3.1%.

Laing predicted a good year for the construction and tourism sectors, and an increase in liquidity in the banking sector. However, he warned that the country must fight to restore its dominance in the financial and tourism sectors, both regionally and internationally.

"This is not the time for half-measures. The opportunities that exist in the world today are huge; they are enormous," he announced, according to the Bahama Journal. "They will not be seized by doing what we have been doing all along, but by doing new and different things."


 07.01.2008

 Proposed changes to copyright laws in UK

 The UK government has launched a consultation on measures proposed in the wake of the Gowers review of the country's intellectual property regime.

Under the proposals, copying music from CDs to computers and MP3 players, technically illegal in the UK, would become legal. The move has had a mixed reception, with some groups representing rights holders suggesting such copying may damage the interests of writers and musicians.

Measures improving the rights of educational establishments with regard to the use of copyrighted materials were also put forward for consultation.


 23.10.2007

 India maintains Mauritius support

 The Indian government has reaffirmed its support for the low-tax jurisdiction of Mauritius, even though recent action by the Indian tax authority has threatened to undermine the Double Tax Avoidance Treaty between the two countries.

The taxation authority has been making efforts over several years to get residency rules tightened in order to prevent 'round-tripping' by Indian investors who make investments in India from Mauritius-based entities, by-passing the capital gains tax in India.

Indian External Affairs Minister Pranab Mukherjee and Mauritian Prime Minister Dr Navinchandra Ramgoolam met during the 62nd Session of the United Nations General Assembly in New York. After the meeting, Mr Mukherjee told the Mauritius Broadcasting Corporation: “This issue was discussed in greater details during the visit of His Excellency (Dr Ramgoolam) in Delhi. At that point of time, the (Indian) Prime Minister, Dr Manmohan Singh, assured him that nothing will be done to adversely affect the interests of Mauritius. I also reiterated that.”


21.10.2007

 Cyprus income tax threshold raised

 The Cyprus House of Representatives has approved new measures that would increase the country's income tax threshold.

The amendment means that no income tax is payable on the first CYP10,750 (EUR18,400) of income for 2007. The threshold will increase to CYP11,350 for 2008.

Tax residence in Cyprus is defined as presence in the country for more than 183 days in a calendar year, which is also the tax year, and then applies to the whole year.


20.10.2007

 Strong company support for EU tax harmonisation

 A new survey has indicated strong support among European companies for both a consolidated corporate tax base (CCCTB) and the harmonisation of European Union corporate tax rates.

KPMG International consulted finance directors, tax directors and tax managers from over 400 companies for their views on the European Commission's CCCTB plans, which propose that the profits of businesses operating in more than one EU member state should be calculated according to a single EU-wide formula. Profits would be reallocated to the countries in which the businesses are active, to be taxed at those countries’ rates.

The survey revealed that the idea is supported by 78% of respondents across Europe. Among the large economies, the UK, was most sceptical, with 62% in favour and 32% against. Only Ireland and Slovakia registered majorities against the proposal, with at least 50% opposed.

While the Commission has stressed that it is not proposing a single European corporate tax rate, 69% of respondents said they would prefer single rate for the whole of the EU.


 18.10.2007

 New UK gambling laws begin

 New gambling laws to protect children and vulnerable people, cut crime and keep games fair are now in force in the UK.

The Gambling Act 2005 creates the Gambling Commission, one of the most powerful gambling regulators in the world, and gives power to local authorities to inspect gambling premises and enforce the new laws.

Key changes include:

Betting shops and remote gambling sites based in the UK will be governed by a dedicated regulator.

New codes governing advertising come into force.

Adverts from outside Europe that fail to meet the UK's regulatory requirements will be banned.

TV advertisements will be allowed for the first time.

The membership requirement on casinos is lifted.


15.10.2007

 Cayman Islands economy strengthens

 Financial Secretary Kenneth Jefferson has told the Cayman Legislative Assembly that, during the past year, the Cayman Islands maintained its international ranking of sixth place for total banking assets held by a jurisdiction.

Meanwhile, the Cayman economy grew by 4.6%, outpacing its main trading partner, the US, where the growth was 3.2%.

Jefferson revealed that increases in the financial sector were seen in insurance company licences, mutual funds, company registrations, and stock exchange listings and capitalisation.


11.10.2007

 RBS-led consortium wins battle for ABN Amro

 Following the abandonment of Barclays' bid for ABN Amro,
a consortium led by the Royal Bank of Scotland has secured the takeover of the Dutch bank.

Around 86% of ABN Amro's shareholders accepted an offer of 71bn euro (US$98.5bn) to signal the go-ahead for Europe's biggest ever banking takeover. Members of the consortium, which also includes Spain's Santander and Belgian-Dutch bank Fortis, are expected to divide up the business between them.

Outgoing ABN Amro chairman Rijkman Groenink is to be succeeded by senior RBS executive Mark Fisher, subject to a ballot of shareholders to be held over the next few months.


10.09.2007

 EC launches cross-border business consultation

 The European Commission has begun a public consultation on whether companies face any obstacles when conducting cross-border business in the EU. The EC is particularly interested in the experiences of small and medium-sized enterprises (SMEs) and whether a possible European Private Company (EPC) Statute may help resolve any problems.

The consultation ends on 31 October and the
questionnaire can be found on the European Commission website: click here



09.09.2007

 BVI delegation to visit London in October

 The British Virgin Islands International Finance Centre
will be undertaking a series of presentations updating executives involved in the trusts and corporate business sector on the growth of the industries in the BVI, their regulatory environment and various opportunities in offshore finance.

Evening presentations for London-based executives in the trusts and corporate business industries take place on Tuesday October 2nd and Wednesday October 3rd respectively at the Dorchester Hotel from 6.30pm, followed by a cocktail reception. The seminars will feature speakers from both the public and private sectors.

If you would like more information on company
registration in the British Virgin Islands and other jurisdictions, click here



08.09.2007

 UK Parliament to study governance of overseas territories

 The UK Parliamentary Foreign Affairs Committee has announced a new inquiry into the exercise by the Foreign and Commonwealth Office (FCO) of its responsibilities in relation to the Overseas Territories*. It will also focus
on the FCO’s achievements against its Strategic Priority
No 10, the security and good governance of the Overseas Territories.

Among the topics on which the inquiry will focus are:

The Foreign Affairs Committee last reported on these matters in January 1998, at the time of the Government’s Dependent Territories Review. The Committee has since produced several Reports on Gibraltar, but this will be the first time it has considered the Government’s overall policy on the Overseas Territories since 1998.

* The Overseas Territories are: Anguilla, Bermuda, the British Antarctic Territory (BAT), the British Indian Ocean Territory (BIOT/Chagos Islands), the British Virgin Islands (BVI), the Cayman Islands, Falkland Islands, Gibraltar, Montserrat, Pitcairn Islands, St Helena and its Dependencies (Ascension Island and Tristan da Cunha), South Georgia and the South Sandwich Islands, the Sovereign Base Areas of Akrotiri and Dhekelia in Cyprus, and the Turks & Caicos Islands (TCI).



08.09.2007

 Marshall Islands removed from OECD “tax haven” blacklist

 The Marshall Islands has been removed from the Organisation for Economic Cooperation and Development's list of “uncooperative tax havens”, after making a commitment to improve transparency, and to establish effective exchange of information in tax matters.

The Marshall Islands is the second country in the past month, following Liberia, to be removed from the blacklist. Only 3 countries remain on the list: Andorra, Liechtenstein and Monaco. The Marshall Islands joins 34 other jurisdictions that have made similar commitments.

If you are interested in company registration in the the Marshall Islands and elsewhere, click here



06.09.2007

 UK regulations produce increase in Malta E-Gaming applications

 Malta is set to benefit from new e-gaming regulations due to be implemented in the UK next month, as internet gaming companies rush to register in other jurisdictions. Companies such as Intercasino, William Hill, Littlewoods, Playboy Casino and Virgin Games are all reported to have expressed an interest in registering in Malta

The surge in applications from such firms to register in Malta has been initiated by the UK government's recent announcement that only companies based in territories on its 'white list' will be able to market their services in the UK from September 1, when the Gambling Act 2005 comes into force. To gain a place on the UK white list, countries must meet stringent new standards.



03.09.2007

 Netherlands Antilles to explore DTAA with Suriname

 The Governments of the Netherlands Antilles and Suriname have reportedly agreed to start negotiations on a bilateral double taxation avoidance agreement, as the Caribbean jurisdiction expands its economic links in the region.

It is reported that negotiations between the two governments towards the agreement, which will also include anti-evasion provisions, will commence in the first week of February 2008.



31.08.2007

 Low-tax countries head GDP table

 The CIA has recently updated its list of countries ranked by Gross Domestic Product per head, with no fewer than 13 out of the top 20 countries being low-tax jurisdictions.

Heading the list is Luxembourg (US$71,400), Bermuda (US$69,900) and Jersey US$57,000). The United States (US$44,000) is placed ninth, while Great Britain, France, Germany and Japan are all outside the top 20.



22.08.2007

 Mauritius Assembly passes Financial Services Bills

 Three financial services bills have been adopted by the Mauritius National Assembly, making the island's Financial Services Commission independent and liberalising the international “global business companies” regime.

The Financial Services Bill, which replaces the Financial Services Development Act 2001, provides a common framework for the licensing and supervision of all
financial services other than banking and for the global business sector.

Under the new provisions, all resident companies conducting business outside Mauritius may opt for an alternative legal regime. Former restrictions on activities conducted by Category 1 Global Business Companies are being removed.

The Bill also provides for the designation of industry associations in all financial services sectors as Self Regulatory Organisations.



18.08.2007

 Low-tax status to be retained in Gibraltar

 In his recent budget statement, Gibraltar's Chief Minister Peter Caruana confirmed the government’s commitment to maintaining the jurisdiction as a low-tax economy.

To comply with EU law, Gibraltar must phase out the tax-exempt company in 2010. The government's decision is to introduce a single low rate of corporate tax for all companies. Caruana said this will be introduced by mid-2010 and will be set between 10% and 12%.

"The Tax Exempt Company has been the backbone of the development and growth of both our finance centre and the online gambling industry, and thus of a very significant part of our economy,” Caruana told Parliament.

In the meantime, corporate tax rates in Gibraltar will be reduced by 2% for 2007/08 from 35% to 33%, and by a further 3% from 33% to 30% in 2008/09. A further reduction to 27% will occur the following year.



15.08.2007

 Special Registration Scheme extended by Malta

 Malta's Ministry of Finance has decided to extend the duration of the Special Registration Scheme, as it is believed that a large number of those who expressed interest failed to register by the original closing date.

The original closing date for registrations will be extended by one month to 31 August 2007.

The Scheme was launched in April to prepare for the adoption of the euro as Malta's new national currency. It is designed to provide individuals residing in Malta with an opportunity to regularise their position in respect of their holdings of eligible assets in those cases where the associated income has not been declared for the purposes of the Income Tax Act.



15.08.2007

 Green light for Caribbean Single Economy in 2015

 At the recent CARICOM Summit in Barbados, Caribbean leaders decided that the Caribbean Single Economy should be fully operational by 2015, and that the preparation of a Strategic Development Plan based on the revised Vision Report should be completed by June 2008.

The Conference, which also urged Member States that had not fully implemented the provisions of the Revised Treaty to fulfill their obligations, remained engaged with Montserrat regarding its participation as a full partner in the CSME. Montserrat is completing the appropriate deliberations with the UK.

Members also confirmed their commitment to the Free Movement of Community nationals, and commissioned a new study into the movement of skilled persons.



12.08.2007

 Tax-cut package announced in France

 A EUR13.6 billion package of tax cuts has been announced to the national assembly of France by the country's Finance Minister Christine Lagarde.

The measures, which are designed to boost the economy, includes the removal of taxes on overtime, reduced inheritance taxes, income tax capped at 50% and the introduction of tax deductibility on some mortgages. In an effort to increase flexibility in the labour market, French president Nicolas Sarkozy's new government also wants to introduce reforms which could see the scrapping of the
35-hour week.

One aspect of the package that is certain to provoke debate is the emphasis on reducing taxes on the wealthy. Christine Lagarde defended the measures as vital in the development of France as a place of wealth creation.

Lagarde predicted that the measures, if approved, would increase the French GDP in 2008 by 0.5%.



18.06.2007

 Malta's financial services industry to be promoted
by new body

 A new government-backed organisation to promote Malta's financial services sector to international investors has been officially launched.

Headed by the current chairman of the Malta Stock Exchange, Joe Zammit Tabona, Finance Malta will oversee the promotional activities previously carried out by the Malta Financial Services Authority and organisations in the private sector.

In explaining the purpose of the new organisation, Parliamentary Secretary Tonio Fenech said that it will "harness the resources of the industry, the regulator and the government to ensure that the country maintains a modern and effective legal, regulatory and fiscal framework in which the sector can continue to grow".

He also drew attention to the fact that financial services now account for about 12% of the country's GDP.

The Maltese government aims for the jurisdiction to become one of the most important financial centres in the region by 2015.



17.06.2007

 EU offshore territories unite

At the recent Outlook for Financial Services Regulation Conference in the British Virgin Islands, representatives of the European Union’s overseas territories proposed working more closely together. Their cooperation is intended to maintain the good standing of international finance centres, and to tackle international challenges.

The conference - which was organised by the BVI International Affairs Secretariat, with assistance from OCTA (Overseas Countries and Territories Association of the European Union) and European Commission funding – was intended to promote discussion between international organisations and overseas countries and territories with finance centres.

The conference was attended by representatives from Anguilla, Aruba, Bermuda, BVI, Cayman Islands, French Polynesia, Greenland, Isle of Man, Mayotte, Montserrat, Netherlands, and the Netherlands Antilles, and from the Commonwealth Secretariat, the International Organisation of Securities Commissions (IOSCO), the Financial Action Task Force (FATF), the International Monetary Fund, the UK Foreign and Commonwealth Office and Financial Services Authority and the Netherlands Central Bank and Finance Ministry.



15.06.2007

 UK leads the way in company incorporations

 The United Kingdom has revealed itself as the substantial leader among jurisdictions incorporating new companies during 2006. Over the course of last year, the UK (England & Wales) saw in excess of 305,000 companies registered – more than four times as many as the next in the table, Hong Kong.

The British Virgin Islands claimed third place with 51,500 companies created, followed by Panama (36,650) and Cyprus (20,350).



13.06.2007

 Final tax reform report published by Hong Kong government

 In its final report with regard to the public consultation on tax reform, the Hong Kong government has recommended that several options be explored to widen the territory's narrow tax base.

A total of 2,400 submissions were received during the nine-month consultation, which was launched as after the government's decision to cancel proposals for a goods and services tax.

Among the options considered for widening the tax base were a “green” tax, a land-and-sea departure tax, a luxury goods tax, and a progressive profits tax.



10.06.2007

 Corporate Tax Cut in New Zealand

 New Zealand has announced a 3% cut in its rate of corporate income tax. Finance Minister Michael Cullen has also detailed a series of measures intended to boost the country's competitiveness in global markets. The main headline from the minister's 2007 Budget was a reduction in the rate of corporate tax to 30% from April 1, 2008.



09.06.2007

 IMF report praises Gibraltar

 Gibraltar’s robust regulatory environment has again been endorsed by the International Monetary Fund’s report on its regulatory environment and anti-money laundering regime.

Nine evaluators from the IMF visited Gibraltar in March last year to conduct a wide-ranging review of the regulatory and supervisory practices in banking and insurance, as well as a review of the Anti-Money Laundering and Terrorist Financing Regime.

In all three areas, Gibraltar was found to be meeting international standards, but the IMF made recommendations for further improvements, which the government and the FSC have accepted and have already been putting in place.

In a statement, Chief Minister Peter Caruana said, “Government is committed to continuing to pursue a policy of proper balance between demanding the highest regulatory standards from the providers of financial services and providing an attractive jurisdiction for the conduct of profitable, safe and competitive financial services."



08.06.2007

 Isle of Man reinforces its independence

 The Isle of Man recently announced a set of principles to reinforce the island's separate status within the context of its constitutional relationship with the UK, following two years of discussions between the Isle of Man government and its UK and other Crown Dependency counterparts.

Chief Minister Tony Brown said the 10 point document, which sets out a framework of principles for the development of the international identity of the Isle of Man, should help the Island’s reputation flourish.

“There is now a greater clarity about the Island’s position, which will be useful in dealing with governments, organisations and businesses around the globe,” he said.



19.05.2007

 Seychelles continues to expand its offshore sector

 The government of the Seychelles continues to expand the offshore business sector with new products, and is seeking to boost foreign investment with further liberalisation of foreign exchange controls.

President of the Seychelles James Michel commented recently: "We are going to widen services that are already in operation," he said, adding: "New services to be offered include mutual funds, special license companies, a stock exchange and new products and services in the insurance sector."

Investment in the onshore business environment will be promoted with a new law that exempts payment of business tax on the first SR250,000 (US$41,000) of profits for all companies, effective from 1 January 2007. The restructuring of the Seychelles tax system also continues, with the creation of a single Revenue Authority.

According to the Seychelles Central Bank, the GDP of the country increased by 3.3% in 2005, and by 7.6% in 2006. Growth in excess of 5% is predicted for 2007-2008.



17.05.2007

 EU launches tax information database

 The European Commission has launched the Taxes in Europe online database, which provides information on the main taxes in force in the Member States.

The database offers information on around 500 taxes and rates applicable, as provided to the European Commission by member states. It also provides information on the revenue generated by each tax. Access is free to all users.

In announcing the launch of the service, László Kovács, the Commissioner responsible for Taxation and Customs, said: "This information tool is 'user friendly' and 'citizen-oriented'. It gives citizens, business, tax professionals, researchers and the press direct access to information that was until today only available piecemeal."

The database will be updated every year. Coverage will soon be extended to the four member states not yet represented – Cyprus, Ireland, Malta and Portugal.



17.05.2007

 UK Registrar of Companies announces changes

 As of 1 April 2007, the UK Registrar of Companies has changed the way it manages Capital and Shareholder information on the forms of Annual Return and allotment of shares. Details that are usually provided on these forms are no longer to be updated by the Registrar.

The Capital and Shareholder details are no longer pre-printed on the paper Annual Return. This means that if the company continues to file these documents on paper, the share information will need to be completed by the company itself.

Capital and Shareholder information will continue to appear on the company record on the copies and images of these documents.

Companies which file these forms electronically will not be affected by these changes as their information is automatically updated by the Registrar's computer systems.


17.05.2007

 Cyprus and Malta ready for Euro, says EC

 The European Commission has confirmed that Cyprus and Malta are able to fulfil the necessary conditions to adopt the euro.

The Commission has proposed that Cyprus and Malta adopt the euro on 1 January 2008. EU Finance Ministers will make the final decision in July.

To become part of the euro area, a European Union country must satisfy multiple criteria regarding the government budgetary position, price stability, exchange rate stability and convergence of long-term interest rates.

Both the Cypriot pound and the Maltese lira have been part of the Exchange Rate Mechanism ERM II since May 2005.

Regarding legal convergence, the Commission said that all "outstanding incompatibilities" have been addressed in both Cyprus and Malta.



02.05.2007

 Barclays proposes merger with ABN AMRO

 The Managing Board and Supervisory Board of ABN AMRO Holding N.V. and the Board of Directors of Barclays PLC have announced that agreement has been reached on the merger of ABN AMRO and Barclays. Each has unanimously agreed to recommend the transaction to its shareholders. The combined group will be called Barclays PLC.

The proposed merger of ABN AMRO and Barclays will create a strong and competitive combination for its clients with superior products and extensive distribution. The merged group is expected to generate significant and sustained future incremental earnings growth for shareholders.

However, any merger is far from certain as Barclays faces a rival bid from a consortium led by the Royal Bank of Scotland.