Gibraltar Used For Tax Evasion Says Spanish Daily

Iberia News

17 October 2000

This story is reproduced by kind permission of Iberia News at http://www.iberianews.com

The daily El-Mundo yesterday reported that Russia and Israel were amongst two other countries being placed in a blacklist created by the Home Office in Spain relating to money laundering issues and evasion of taxes through the use of tax havens, amongst them being Gibraltar, although not listed as the only possibility.

The report claims that the Spanish Authorities have indicated that there is an increase in activities across the Costa Del Sol by criminal groups originating from these and other countries listed in the report.

It further pinpoints that Gibraltar is still viewed as a special case in which it is believed that money laundering activities takes place due to its offshore centre. Although El-Mundo points out that transactions are done mainly through offshore centres such as Gibraltar, through the buying and selling of items such as property.

The Home Office report from the Spanish Government asks for banks to give details of transactions which might be seen as possible illegal investments, tax evasion or money laundering activities to curb the growing flow of money laundering activities taking place from Spain.

A total of 1,311 cases were reported last year, with 607 cases coming to the attention of the authorities after private banks had made details known to the authorities. This figure was the largest percentage of the activities registered.

The flow of money laundering activities has increased in the past few years, with only 27 cases reported in 1993.

Gibraltar was singled out due to its proximity to Spain, and the fact that it is alleged to be acting as a means to evade tax by some Spanish firms.

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