BEPS declaration demonstrates that Spain has not recognized Gibraltar

The Spanish declaration to the OECD on Gibraltar’s membership of the OECD’s base erosion profit shifting (“BEPS”) framework demonstrates that Spain has not recognized Gibraltar at all. Despite the GSLP-Liberal Government flaunting the Tax Treaty as Spanish recognition of Gibraltar the reality, as always, is quite different.

The Spanish BEPS declaration fully protects and asserts Spain’s traditional claim to the sovereignty of Gibraltar, clearly limits Gibraltar’s competence to local/internal matters and circumscribes the application of BEPS to Gibraltar in accordance with Article 10 of the Treaty of Utrecht.

In sharp contrast, and in line with the spin that all are becoming accustomed to, the GSLP-Liberal Government has asserted that Gibraltar has joined the BEPS framework as a result of the Tax Treaty with Spain and because this recognised Gibraltar and its people. The Spanish declaration, however, smacks of old Spain by emphasizing, several times, Spain’s traditional position and it’s non-recognition of Gibraltar.

Mr Picardo should abandon his spin that attempts to sell to the people of Gibraltar that the Tax Treaty was a recognition by Spain of Gibraltar.

GSD Leader Keith Azopardi said:

“This is another example of Mr Picardo trying to sell to the people a position that is diametrically opposite to the facts. The Tax Treaty was a bad agreement for Gibraltar. It taxes Gibraltarians returning home as if they lived in Spain and some of our companies as if they traded in Spain when they don’t. The only thing that Mr Picardo could say in its defence was to try to sell it as a recognition of Gibraltar by Spain. Now even that is shown to have been categorically wrong following the Spanish BEPS declaration to the OECD.”