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- GIBRALTAR
THE EU DIRECTIVE ON A LEGAL FRAMEWORK FOR E-COMMERCE
- GIBRALTAR THE
EU REGULATORY FRAMEWORK FOR ELECTRONIC COMMUNICATIONS
- GIBRALTAR LOCAL
LEGISLATION
- GIBRALTAR TELECOMMUNICATIONS
- GIBRALTAR
HOSTING AND ISP FACILITIES
- GIBRALTAR INTERNET
WEB DESIGN SERVICES
- GIBRALTAR PAYMENT
PROCESSING
- GIBRALTAR BANKING
FACILITIES
- GIBRALTAR
PLANNING THE TAX STRUCTURE
- WHAT TO LOCATE
IN GIBRALTAR
- GIBRALTAR OFFSHORE
OPTIONS FOR E-BUSINESSPEOPLE
There
is something of a competition between a number
of offshore jurisdictions to offer the most advanced
e-commerce environment to businesses seeking an
offshore base for part or all of their operations.
Gibraltar would claim to be one of the preferred
jurisdictions in this competition. This section
of the Gibraltar site explores how businesses
can optimise their tax structure by using Gibraltar
as a base while still keeping to sensible commercial
principles of operation.
Can
Gibraltar become a major player in the expanding
and lucrative world of E-commerce and an effective
hub of such activity for the European Union?
In
April, 2004, the government established an E-Business
Advisory Council, whose membership consists of
government officials, including the government’s
head of IT, John Desoiza and the chief executive
of the Ministry for Trade, Industry and Telecommunications,
Richard Garcia. Two members of the panel are drawn
from the private sector and were nominated by
the Gibraltar Federation of Small Business and
the Gibraltar Chamber of Commerce, although they
will serve on the council in their personal capacities.
Gibraltar
has set itself an ambitious goal, since the world,
both onshore and offshore, is full of countries
which have said they mean to become global e-commerce
leaders. The UK may have shot itself in the foot
with its misconceived 'RIP' legislation and its
general slowness, but Ireland, Malta, the Isle
of Man and especially Dubai are just four of the
competitors which are arguably ahead of Gibraltar
in various respects.
Gibraltar's
advantages are her position in the EU, both geographically
and structurally, an established base of professionals,
good telecommunications and excellent port facilities.
If only the problems with Spain could be resolved,
Gibraltar could function as a tax-efficient e-commerce
gateway to Spain and the rest of the EU beyond
for physical goods as well as digital ones. As
things are, Gibraltar has to give preference to
digital products, including financial services,
in which the competition is strongest.
Some
of the basic infrastructure is already in place.
Despite Spain's efforts to baulk progress and
her reluctance to comply with EU obligations in
this field, Gibraltar has a relatively efficient
telecoms network and the capability to expand
this to provide the range of bandwidths that serious
development of E-com will require. Telecoms liberalisation
continues to reduce the current high costs of
the services, making these more competitive.
Geographically
Gibraltar is well-placed both as a stepping stone
into Europe and at a crossroads of the world's
communications network - though such advantages
are probably more psychological than practical.
In theory at least, cyberspace knows no boundaries
and the global nature of E-commerce allows it
to be conducted anywhere. As a speaker at a recent
international symposium on E-com legislation put
it: 'All you need is a laptop and a link to the
Internet and you are in business.' An over-simplification
which encapsulates a basic truth.
Another
"plus" is the solid international reputation
as an off-shore financial centre which the Rock
enjoys. Its company and banking legislation and
regulatory practices are comparable to those of
Britain and provide an important confidence-builder
for companies considering Gibraltar as a potential
home - whether for E-com or any other form of
business.
By
locating websites in Gibraltar to carry out functions
previously based in high-tax jurisdictions such
as sales and marketing, treasury management, supply
of financial services, and most of all, the supply
of digital goods such as music, video, training,
software etc, businesses can take advantage of
low rates of taxation for increasingly substantial
parts of their operation.
A
case in point is the betting and gambling sector:
In 2000 and 2001 Gibraltar attracted many of the
book-makers who fled the UK's high-tax regime
in order to set up telephone betting service centres
offshore. Some of them also offer Internet products,
either as a direct replacement for over-the-counter
or telephone betting on racing, or simply as pure
gambling products: electronic fruit machines and
other casino games. Telephone betting is labour
intensive, electronic betting less so, but there
was still a major boost for employment in the
territory. During 2002 the offshore betting and
gaming sector lost momentum, but in 2003 Gibraltar
appeared to be an increasingly popular choice
again for online gambling firms.
In
May, 2004, Gibraltar showed that its e-commerce
prowess wasn't limited to betting, when leading
London-based independent trading firm Mac Futures
significantly expanded its presence in the jurisdiction
of Gibraltar with the opening of a new 100-desk
trading facility by Chief Minister Peter Caruana.
In
May, 2005, PartyGaming Plc, the Gibraltar-based
e-gaming firm which owns the largest multi-player
poker room on the internet, announced a healthy
financial performance prior to its flotation on
the London Stock Exchange. PartyGaming saw unaudited
revenues of $602 million in 2004, deriving a profit
before share option expenses of $391 million.
The
company was subsequently dealt a blow by the introduction
of US legislation in 2006 effectively banning
online gambling involving US citizens.
However,
in March, 2007, the firm announced strong growth
in revenues and profits, as its decision to focus
on other markets began to pay off.
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