The Tax Treaty is not a Positive Recognition or Protection of Gibraltar

The UK-Spain Tax Treaty and the other Brexit related UK-Spain Memoranda of Understanding (MoUs) do not
protect Gibraltar’s British Sovereignty or self-governing status under the 2006 Constitution. The Chief Minister,
Fabian Picardo’s, persistent defence is based on spin and delusion, yet he continues that mistaken argument
publicly, even before the UN Committee of 24.

The agreements between the UK and Spain, under the umbrella of the Protocol, are all concessionary that favour
Spain, on all issues covered, namely citizens’ rights, the environment, police and customs, taxation and the
protection of financial services. The GSD have never and do not support these actions of the GSLP/Liberal
Government.

Further, the GSD do not support the position of the GSLP/Liberal Government that the Protocol and MoUs can
form a basis for adoption for agreement with Spain should there be a hard Brexit. The Tax Treaty is effective
despite the nature of Brexit.

The GSD consider that the Tax Treaty surrenders elements of sovereignty to Spain on matters of taxation; not
least that Spanish nationals working in Gibraltar and companies controlled by Spanish nationals or residents that
operate in Gibraltar after a stated date, are taxed as if they were in Spain. It will also be a disincentive to economic
growth by taxing Gibraltar companies exclusively operating here as if they were operating in Spain if their
directors or shareholders reside in Spain.

The concessions are too fundamental to justify any questionable recognition by Spain of Gibraltarians. If Spain
was prepared to recognise Gibraltar, its Government, its people and our rights this would have taken a more
obvious form than mentioning Gibraltarians so as to tax them as Spanish residents when they return home. As
usual Mr Picardo twists the truth to the point that it is not recognisable anymore.

What more sovereignty concession than a concession on tax? Gibraltar’s elders will recall the mantra “no taxation
without representation”. It was the cry of Sir Joshua Hassan’s AACR when the UK tried to tax Gibraltarians before
some democracy was introduced.