House Of Lords Expresses Concern Over Sovereignty And Tax In Gibraltar

by Jason Gorringe, Tax-News.com, London

14 December 2001

In a recent House of Lords debate, several members expressed concerns over the effect of current EU and OECD tax initiatives on the offshore financial centre of Gibraltar, and raised doubts as to the legitimacy of certain Spanish actions with regard to the territory.

When questioned as to the potential repercussions for the economy of the Rock, should changes be required to the workings of the offshore sector, the Minister for Trade, Baroness Symons, was reassuring, stating: 'We believe that Gibraltar's finance sector can continue to flourish within the framework of those [EU and OECD] initiatives and we are in consultation with the Government of Gibraltar on those issues.'

When questioned over the obstacles placed in the jurisdiction's path to progress in terms of telecommunications by the Spanish government, Baroness Symons reassured the House that the UK government was fully aware of the concerns of Gibraltarian businesses, and that the matter was under discussion with the Spanish government.

She pointed to the UK's defense of Gibraltar's money laundering record and its intervention during the altercation between Spain and the OECD over the territory's status as occasions when Britain had successfully intervened on the Rock's behalf, and stressed the UK's continuing support. But her anodyne statement won't cut much ice in Gibraltar, which is up in arms against the UK Government's perceived failure to defend the Rock's interests in Europe.

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