Brussels launches legal action against UK over ‘unfair advantage’ given to multinational firms operating in Gibraltar
- European Commission VP Margrethe Vestager made the statement earlier today
- It said Britain had failed to recover €100million in tax exemptions from the firms
- This is the latest in a string of spats between the EU and post-Brexit Britain
European Commission Vice-President Margrethe Vestager said Britain had failed to recover €100million in tax exemptions
Brussels has launched legal action against the UK over the ‘unfair advantage’ given to multinational firms operating in Gibraltar.
European Commission Vice-President Margrethe Vestager said earlier today that Britain had failed to recover €100million in tax exemptions from the firms despite the EU deeming the tax breaks ‘illegal state aid’.
The sum, equivalent to £85.8million, is small relative to many EU state subsidy cases but this is the latest in a string of spats between the EU and post-Brexit Britain.
‘The aid granted by Gibraltar in the form of corporate tax exemption for passive interest and royalties gave an unfair advantage to some multinational companies,’ Vestager said.
She added: ‘More than two years after the Commission adopted this decision, the aid has still not been recovered in full and sufficient progress has not been made in restoring competition.
‘That is why we have decided to refer the United Kingdom to the Court of Justice for failing to implement this decision.’
The United Kingdom left the European Union last year but the case dates back to a period before Brexit over which Brussels says the European Court of Justice still has jurisdiction.
Gibraltar (pictured) is a British overseas territory with a border with southern Spain and European member states have long had concerns over its competitive tax regime
Gibraltar is a British overseas territory with a border with southern Spain and European member states have long had concerns over its competitive tax regime.
In December 2018, the European Commission decided that some corporate tax exemptions granted to multinationals in Gibraltar between 2011 and 2013 broke EU rules against state subsidy.
They ordered the UK to recover sums granted to four companies but this has only been fully completed for two with the remaining pair challenging the order.
Gibraltar becomes the first nation in the world to fully vaccinate its entire adult population
Speaking in the House of Commons today, Health Secretary Matt Hancock revealed Gibraltar had vaccinated all adults
Gibraltar became the first nation in the world to fully vaccinate its entire adult population.
The British territory, which reached the milestone on Wednesday, is home to 33,000 people and has had 4,263 cases as well as 94 deaths.
Health Secretary Matt Hancock told the House Of Commons yesterday: ‘I am delighted to be able to tell the house that yesterday, Gibraltar became the first nation in the world to complete its entire adult vaccination programme.
‘I want to pay tribute to all Gibraltarians for their fortitude during this crisis and the kind words of first minister Fabian Picardo, who said yesterday ‘the United Kingdom has played a blinder on vaccinations and we are among the beneficiaries in the British family of nations’.
‘I agree, the vaccination programme has been a success thanks to a team spirit across the British family of nations.’
Chief Minister Fabian Picardo has since thanked the UK government for its support of the island’s vaccination drive.