Comparative Guides
Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.
Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.
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Results: 4 Answers
Corporate Tax
5.
Anti-avoidance
5.1
Are there anti-avoidance rules applicable to corporate taxpayers – if so, are these case law (jurisprudence) or statutory, or both?
 
Gibraltar
Anti-avoidance rules are incorporated into Gibraltar legislation. More particularly, the Gibraltar Income Tax Act 2010 contains the anti-avoidance rules applicable to corporate taxpayers.

For more information about this answer please contact: Emma Lejeune from ISOLAS
5.2
What are the main ‘general purpose’ anti-avoidance rules or regimes, based on either statute or cases?
 
Gibraltar
Gibraltar legislation contains general anti-avoidance provisions which allow the commissioner of income tax to disregard an arrangement which he believes is fictitious or artificial.

For more information about this answer please contact: Emma Lejeune from ISOLAS
5.3
What are the major anti-avoidance tax rules (eg, controlled foreign companies, transfer pricing (including thin capitalisation), anti-hybrid rules, limitations on losses or interest deductions)?
 
Gibraltar
Gibraltar legislation also contains specific anti-avoidance provisions that deal with:

  • thin capitalisation;
  • transfer pricing;
  • interest limitation;
  • controlled foreign companies; and
  • hybrid mismatches.
For more information about this answer please contact: Emma Lejeune from ISOLAS
5.4
Is a ruling process available for specific corporate tax issues or desired domestic or cross-border tax treatments?
 
Gibraltar
Gibraltar recently incorporated specific rules that allow an application for a tax ruling to be made by an actual or potential taxpayer in relation to the potential income tax implications of a transaction, or any other matter relating to the practical application of Gibraltar tax legislation. Any requests are considered on a case-by-case basis at the discretion of the commissioner of income tax and on the basis of full facts and supporting documentation. The commissioner will reserve the right to invalidate a ruling if the facts and circumstances change or the legislation changes to the extent that it would no longer support such a ruling.

For more information about this answer please contact: Emma Lejeune from ISOLAS
5.5
Is there a transfer pricing regime?
 
Gibraltar
Yes. That amount of interest payments to connected persons which exceed what would be deemed arm’s length will be treated as a dividend and therefore will not be deductible for tax purposes. Also, if the amount charged for goods and services by the connected person is not at arm’s length, expenses allowed are subject to a maximum of the lesser of either:

  • the amount of the expense;
  • 5% of the gross turnover of the company; or
  • 75% of the pre-expenses profit of the company.
For more information about this answer please contact: Emma Lejeune from ISOLAS
5.6
Are there statutory limitation periods?
 
Gibraltar
There is an ordinary time limit of six years for making tax assessments. However, where any form of fraud, wilful misconduct or neglect has been committed, tax assessments may be made up to 20 years after the end of the year of assessment.

For more information about this answer please contact: Emma Lejeune from ISOLAS