Photo: Wikimedia commons
Britain had been hoping to enact a new corporate tax law for its tiny island off the coast of the Spain, Gibraltar.Given calls for austerity, the general movement to reclaim money from Swiss bank accounts, and so on, we would assume that the tax might be designed to gain more money from corporations, yes?
Well, perhaps not. According to the AFP, the European Union Court of Justice has found that the proposed tax system was “designed in such a way that offshore companies avoid taxation,” allowing companies with no physical presence on the island to pay no tax, as the tax is based upon physical locations and number of employees present.
Gibraltar, already known for its low tax laws, is not allowed to implement the laws now as they would effectively be “scheme of state aid which the United Kingdom is not authorised to implement,” being outside the accepted norms for the single market.
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