Friday, February 26, 2021 - 12:41

In a marathon session of Parliament, ending close to midnight, the GSD motion was defeated. The House approved by 10 votes to six that the Tax Treaty be passed.

Earlier the tax treaty with Spain has provoked a storm in Parliament, with the Opposition arguing that it be replaced because it is intrusive and harmful to Gibraltar.
This is the motion moved in the House late yesterday:
"THIS HOUSE:

NOTES the International Agreement on Taxation and the Protection of Financial Interests entered into on the 4 March 2019 between the Kingdom of Spain and the United Kingdom of Great Britain and Northern Ireland regarding Gibraltar (the "Tax Treaty") and signed by the Rt Hon David Lidington MP, the Chancellor of the Duchy of Lancaster, on behalf of Gibraltar AND;
CONSIDERS that the Tax Treaty is intrusive and harmful to Gibraltar's interests AND;
RESOLVES that the Tax Treaty should be replaced at the earliest opportunity with a neutral and fair tax treaty based on the OECD model tax treaty."
NO PREJUDICE TO SOVEREIGNTY, JURISDICTION OR CONTROL
For the Government, the treaty is not harmful or intrusive. It is Sovereignty protected.Jurisdiction recognised and Control exercised.
This Treaty was signed in March 2019.There has been a general election since then.All these arguments were put then - and the GSD lost. That's the Chief Minister's argument.
Mr Azopardi is being reminded that he was fourth from bottom with his arguments. Only Mr Clinton, Mr Philips and Mr Reyes were less popular.
The people of Gibraltar are no fools, says Mr Picardo.
The Government line is that the Tax Treaty provides greater clarity and transparency, ensures better relations with Spain for the future, removes us from the blacklist in Spain and has allowed Gibraltar to join international forum on tax transparency such as the OECD's BEPS Inclusive Framework.