16.08.2006 The Manx Treasury's Economic Affairs Division has produced figures on the fiscal year 2004-2005. These figures reveal that the island's economy growth by 5.2% in real terms that represent the 22nd consecutive year of economic growth.
In accordance with the Treasury's figures, the Island's GDP equalled GBP 1.5 billion, which is an increase of 11.5% as compared to the previous year or an increase of 5.2% if to take into account inflation.
The figures are favourable if to compare with the UK economy which grew by 3.2% and the EU economy where member economies grew by just 2.2%.
Manx Treasury Minister Allan Bell noted that the figures reflected the growth expectations included in the Government Plan. Bell admits that many challenges lie ahead of Manx and promises that Government will go on striving to lay the foundations for economic success by means co-operating with all stakeholders in order to produce a favourable commercial environment for further development.
10.08.2006 Today, 10 August 2006, the Government of Gibraltar has reported that GDP growth in 2005 is likely to have been 7%, while in 2004 growth was 10.4%. As to per capita GDP, it is the 10th highest in the world and will have recorded a new high of GBP 21 000.
The Government of Gibraltar is estimating revenue of GBP 250 million in 2006-07 and expenditure of GBP 232.7 million, resulting in a surplus of GBP 17.3 million programme.
Public debt is still GBP 93 million and it is 15.7% of GDP.
Currently, inflation is 2.9% and, as to the employment in Gibraltar, it is almost full - 97% within the economically-active Gibraltarian population.
When talking about Gibraltar's economy, it should be noted that tourism and financial services account for about 30% of the economy each, the port and shipping account for 25%, and telecommunications, ecommerce, e-gaming and other service-related activities account for the remaining 15%.
The number of Gibraltar visitors reached 7.8 million in 2005.
A major part of the product base of most banks are providing investment services.
01.08.2006 IRS expressed their concern on the fact that tax shelters assist wealthy Americans to hide money in complicated offshore transactions, which remain invisible to the tax agents. They noted that offshore abuses have become a real problem. These concerns were announced in Tuesday's report to the US Senate made by IRS Commissioner Mark Everson. He named some real examples of asset protection and tax planning schemes that will be addressed by authorities.
This IRS report has proved the results of yearlong investigation of offshore tax shelters published by US Senate Homeland Security and Governmental Affairs Committee. In their study they concluded that offshore tax havens allow the Americans to avoid paying $40 billion to $70 billion of taxes each year, with the help of "an armada" of professional advisers.
The investigative subcommittee is going to address the problem by changing laws to presume that a U.S. citizen should be taxed on money in a corporation or a trust in a country known to the Treasury Department to be a tax haven.
