UK And Gibraltar Obstructing Spanish Criminal Investigations, Madrid Claims

by Jason Gorringe, Tax-News.com, London

10 November 2005

The United Kingdom Foreign and Commonwealth Office (FCO) has rejected claims from the Spanish government that the UK is being obstructive with respect to requests for information from Gibraltar regarding domestic tax evasion and money laundering investigations by the Spanish authorities.

A report by the Gibraltar Chronicle this week has highlighted Madrid's apparent indignation that recent requests for information by the police force of Andalusia into fiscal crime have not been forthcoming from Gibraltar. This position was emphasised in a statement released by the Spanish Foreign Ministry which reiterated comments made in parliament by the Spanish Interior Ministry last week that there has been "almost no cooperation from Gibraltar" in such matters.

However, as the FCO pointed out in its own statement, the situation is complicated by Spain's insistence that it will not communicate with the Gibraltarian authorities directly, meaning that all requests for legal assistance must be routed through a third party, namely the UK, in what is known as a "post-boxing arrangement."

"Gibraltar’s legislation meets with all current EU and international requirements in this field, as do police, judicial and administrative procedures for enforcement," the FCO said.

The statement went on to add that:

“Co-operation to tackle organised crime would be much improved if the Spanish authorities were to agree to speak directly to the competent authorities in Gibraltar. The UK Government understands that, in the spirit of trilateral dialogue, Gibraltar is ready to meet Spanish officials to clarify co-operation procedures.

"The UK Government also notes, as the Gibraltar Government has already done, that Gibraltar has responded positively to each and every request from Spain for judicial or police assistance that complies with the relevant international treaty and bilateral agreement."

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