GSD: No Recognition Of Gibraltar In The “Bad Spanish Tax Agreement”
The GSD has said that Gibraltar’s constitutional status does not prevent it from directly signing the Tax Agreement with Spain.
A statement from the party argued: “Yesterday the Chief Minister said that the fact that Gibraltar was unable to directly sign the Tax Agreement with Spain was because it was prevented by our constitutional status. This is not true. The reason why Gibraltar could not sign the International Tax Agreement directly is because Spain refuses to recognise Gibraltar and would not sign it with us directly. This is her traditional position.”
Leader of the Opposition, Keith Azopardi added: “Gibraltar’s constitutional status has not prevented us from signing numerous bilateral international agreements concerning tax with countries such as the United States, Germany, France or Portugal. A link to some of those can be found here:
https://www.oecd.org/ctp/exchange-of-tax-information/taxinformationexchangeagreementstieas.htm
“These are normally simply enabled under a letter of entrustment from the United Kingdom after which Gibraltar can sign the agreements directly.
“The fact is that this mechanism cannot be used here because Spain has not and would not recognise Gibraltar. Spain would have been unwilling to sign an International Agreement with Gibraltar even if there had been a letter of entrustment in place. It is unreal to say otherwise.
“On the substance itself the GSD remains of the view that this is a harmful, intrusive and unfair agreement. It was a mistake to enter it. Together Gibraltar in their reaction welcoming the Spanish Parliament’s vote says the International Agreement makes concessions. That, at least, is a genuine recognition of its effect. It is in overall terms a bad agreement for Gibraltar.
“We will explain why when the Motion on it is debated in our Parliament at the end of June.”
