Gibraltarians who live in Spain are already subject to Spanish tax, the Gibraltar Government said, responding to statements made by the Leader of the Opposition, Elliott Phillips, on a GBC Viewpoint debate last Thursday.
Mr Phillips’ suggestion that the Gibraltar Government had made concessions to Spain in that treaty were “clear lies”, No.6 Convent Place said in a statement.
“These are lies designed to mislead the public,” the government said.
“They are also, disgracefully, lies designed to spread fear amongst those Gibraltarians who reside in Spain because, he claims, they cannot afford to live in Gibraltar.”
The Gibraltar Government insisted it had not made any concessions in the tax treaty on sovereignty, jurisdiction or control.
“The Government has not agreed anything to damage the rights of Gibraltarians who live in Spain,” it said.
“The fact of the matter is that Gibraltarians who live in Spain are today already subject to Spanish tax.”
“If anyone lives in Spain but does not pay tax there, they are very likely in breach of Spanish tax law already.”
“What the tax treaty will do – which is a huge benefit for Gibraltarians who live in Spain and are properly registered in that respect – is provide a right to double taxation relief.”
“This relief is presently afforded by concession in most instances, but there is no right to it.”
“The tax treaty will provide a right to this unilateral double taxation relief.”
“Additionally, the treaty also provides other advantages for individuals, corporate entities and for Gibraltar as a nation.”
“The Government therefore looks forward to dispelling any further lies the GSD may want to try to spread.”