Tax Treaty Criticisms by Spanish Tax Expert Vindicate GSD Position

The GSD notes that the criticisms and concerns of the Tax Treaty raised by an independent Spanish Tax Lawyer, at the recent seminar at the University of Gibraltar during the University of Cadiz Summer Courses programme, mirror those already voiced by the GSD repeatedly. These views from a Spanish tax expert support the GSD’s position on the UK-Spain Tax Treaty over Gibraltar.

GSD shadow minister for Public Finance Roy Clinton MP said:

“Mr Jorge Sanchez Alvarez has come to similar conclusions as the House of Lords did as to the one-sided nature of the Treaty and also coincides with the GSD’s view of the unfair aspects of the Treaty.

That he goes as far as to describe the Treaty as ‘imprecise and vague’ and suggest that it was not drafted by technical tax experts goes to the heart of the matter showing that the treaty is, as the GSD has said throughout, political first and foremost. It is also very significant that Mr Alvarez notes that the tax provisions go well beyond anything in current Spanish Tax law and so is open to challenge in court and for discrimination.

Mr Picardo holds up the tax relationship between Monaco and France, by way of example, to defend the Treaty’s intrusive nature, without acknowledging those countries entwined histories, the blockade threats from France that led to that tax relationship and that Monaco is practically a protectorate of France. Perhaps unconsciously that is what Mr Picardo is resigned to, but the GSD will not accept any dilution to Spain of Gibraltar’s tax sovereignty, which is what Mr Picardo’s GSLP-Liberal Government has conceded.”