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10th July 2019, 16:39

BEPS framework; GSD says Spain has not recognised Gibraltar at all

The GSD says the Spanish declaration to the OECD on Gibraltar's membership of the BEPS framework demonstrates that Spain has not recognised Gibraltar at all.

Gibraltar has joined a coalition of countries working towards “minimum standards” to prevent tax avoidance by multinationals, having previously been blocked by Spain.

But the official Opposition says despite the GSLP-Liberal Government flaunting the Tax Treaty as Spanish recognition of Gibraltar, it says the reality is quite different.

Gibraltar's inclusion onto the OECD's Base Erosion profit shifting framework, or BEPS, comes after Spain lifted its veto after it agreed the tax treaty with the Rock.

However, the GSD says the Spanish BEPS declaration fully protects and asserts Spain's traditional claim to the sovereignty of Gibraltar and clearly limits Gibraltar's competence to local/internal matters.

This, it says, is in contrast to the Government's spin that Gibraltar has joined the BEPS framework as a result of the Tax Treaty with Spain and because this recognised Gibraltar and its people.

GSD Leader Keith Azopardi said Fabian Picardo's attempt to sell the Tax Treaty as a recognition of Gibraltar by Spain has been shown to be catagorically wrong following Spain's BEPS declaration to the OECD.