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GSD welcomes UK double tax treaty, slams ‘unfair’ deal with Spain

The double tax treaty between Gibraltar and the UK will put business on a sounder tax footing, the GSD said yesterday, contrasting it with the “unfair” tax deal with Spain.

In a statement the GSD said it welcomed the Gibraltar Government’s announcement that a double tax treaty had been concluded with the United Kingdom.

It added that the new treaty will put UK/Gibraltar business on a sounder tax footing and will assist Gibraltar in a post-Brexit environment.

“A cursory reading of the UK Tax treaty especially in respect of the tests for tax residence will show clearly how unfairly the Spanish Tax Treaty has been worded in favour of Spain,” the party said.

The UK Treaty is based on the OECD model and, the GSD said, is the one it would prefer to have seen concluded rather than the “one-sided” treaty with Spain which “does nothing to maintain the ‘status quo’ as suggested by Together Gibraltar who are entirely misguided in their interpretation of the Treaty”.

“The GSD would welcome the publication in full of all legal opinions obtained by the Government in respect of the Spanish Tax treaty especially those that claim that there has not been any dilution to Spain of Gibraltar’s tax sovereignty, which is what Mr Picardo’s GSLP-Liberal Government has conceded.”