The Commissioner of Income Tax has formally advised the Government that he has exercised his statutory powers under section 68 of the Income Tax Act 2010 for the publication of a list of tax defaulters (15 in total) in the Gibraltar Gazette.

This measure is intended to support compliance with tax legislation and to safeguard Gibraltar’s broader macro-economic interests. 

The publication of such a list is expressly provided for under the Act and is used only in limited and exceptional circumstances. It is applied as a measure of last resort, following sustained and repeated non-compliance by taxpayers who have failed to meet their obligations despite extensive engagement, due process, and opportunities to regularise their affairs with the Income Tax Office. The cases concerned do not include taxpayers who have entered into agreed settlement arrangements in respect of outstanding liabilities. 

The preparation of the list has been undertaken strictly in accordance with the law, with all required safeguards, procedures, and statutory criteria carefully observed. 

The use of these statutory powers was referenced by the Principal Auditor in his report, which was subsequently debated in Parliament. As the Minister for Taxation Nigel Feetham explained during those proceedings, despite and notwithstanding the matters raised in that report, the Commissioner’s exercise of the powers under section 68 of the Act was imminent. 

The Government reiterates that its clear policy preference is for voluntary tax compliance and that the Commissioner’s statutory powers are exercised only as a measure of last resort where an employer has failed to remit employees’ PAYE contributions to the Government or a taxpayer has failed to pay tax due on profits. Where genuine financial hardship exists and the taxpayer engages constructively with the Commissioner, such powers are not invoked.