Govt introduces new anti-avoidance tax measures
Photo by PA.
The Government of Gibraltar has introduced revised anti-tax avoidance provisions aimed at reinforcing tax compliance and aligning Gibraltar’s framework with international standards.
The updated rules grant the Commissioner of Income Tax extended powers to counteract or disregard any tax advantages gained through arrangements deemed inconsistent with the intent of tax legislation. The approach prioritises the economic substance of transactions over their legal form, ensuring taxation is applied fairly and consistently.
The provisions are in line with OECD guidance and internationally accepted tax principles. Similar rules are found in other jurisdictions and are considered essential elements of modern tax systems.
Key measures include new standards for professional accountability, allowing the Commissioner to refer tax advisors to regulatory bodies if they are found to be promoting or facilitating avoidance schemes. The rules also prevent tax deferral through the accumulation of profits within companies followed by liquidation for tax-free distribution.
The Minister for Taxation, Nigel Feetham, said: “Gibraltar is committed to a robust, fair tax system that meets global standards such as those set by the OECD.”
“These measures support the Government’s tax compliance strategy, targeting complex tax avoidance schemes and ensuring that large businesses benefiting from our regulatory and licensing regimes contribute their fair share of tax.”
“This strengthens our fight against tax avoidance while maintaining Gibraltar’s position as a transparent, attractive financial centre, helping secure our future economic prospects and broader macro-economic interests.”
