20.07.2006 The government of Luxembourg was ordered by the European Commission to dismantle the system of tax breaks for financial holding companies. After a preliminary 4-year review and an investigation, that was started in February, and the European Commission concluded that the preferential tax regime in favour of Luxembourg's Exempt, Milliardaire and 1929 Financial Holding companiesclashes with European Commission Treaty state aid rules.
The scheme that grants sizeable tax advantages to providers of certain financial services setting up holding structures in Luxembourg distorts competition and trade.
In June 2005, Luxembourg made amendment in the 1929 law by to abolish the exempt status for holdings receiving more than 5% of their yearly dividend income from participating companies, not subjected to a tax comparable to the one applied in Luxembourg; and this narrowed the law, but still, he European Commission suggested does constitute state aid because the tax advantages stay the same.
In accordance with the requirements of the European Commission, the scheme must be repealed by the end of 2006, and its effects for the existing holdings must be definitively eliminated by the end of 2010. In this case, the existing beneficiaries will exit from the holding structures not incurring tax penalties.
20.07.2006 The US judicial authorities have signalled of their intention to crack down on illegal online gambling.
This was made after several executives of BetonSports were arrested on a number of fraud-related charges. The US Department of Justice reported that a federal grand jury in the Eastern District of Missouri had returned a 22-count indictment that charges 11 individuals and 4 corporations with different charges of racketeering, conspiracy and fraud.
BetonSports is a publicly-traded holding company having many Internet sportsbooks and casinos. Company's founder Gary Stephen Kaplan was charged with 20 felony violations of federal laws. These include tax evasion, the Wire Act, interstate transportation of gambling paraphernalia, Racketeer Influenced and Corrupt Organizations (RICO) Conspiracy and interference with the administration of Internal Revenue laws.
Other defendants in the racketeering conspiracy were Kaplan's siblings Neil Scott Kaplan and Lori Kaplan Multz, chief executive officer of BetonSports.com David Carruthers, Norman Steinberg, media director for BetonSports.com Peter Wilson, and Steinberg's son-in-law Tim Brown.
The allegations are that Gary Kaplan began his gambling enterprise in the early 1990s throught the operation of a sportsbook in New York City. Kaplan moved his betting operation to Florida and eventually offshore to Costa Rica after being arrested on New York state gambling charges in May 1993.
Additionally to the indictment, the US authorities have filed a civil complaint in federal court to require BetonSports PLC to stop taking sports bets from the USA and to return money that is held in wagering accounts to their holders in the USA.
It is presumed that online gambling sucks billions of USD a year out of the US economy. Also, it is used a means for money laundering.
06.07.2006 Today, 06 July 2006, the governments of the UK and Gibraltar have published the draft documents related to the proposed new Constitution for Gibraltar, which could lead to a referendum in September.
The new Constitution provides for good and modern relationships between Gibraltar and the UK.
Also, the Constitution ensures that Human Rights provisions accord with the European Convention on Human Rights. In accordance with it, UK Ministers will have no right to disallow laws that Gibraltar Legislature passed. The new Constitution also restricts the right to dissolve parliament that the Governor has now.
The UK's Minister for Europe, Geoff Hoon, suggests that the new Constitution does not diminish British sovereignty and that it gives Gibraltar greater control over its internal affairs.
The Constitution will reflect that the UK holds international responsibility for Gibraltar and its defence, and it is also responsible for Gibraltar in the EU.
