MercoPress. South Atlantic News Agency

Exchange of information between UK and Gibraltar

Gibraltar in an official release confirmed it complies with the taxation of Savings Directive denying recent statements in the Channel Islands press alleging differences with the United Kingdom on the matter.

The Government of Gibraltar notes statements in the Channel Islands which refer to a "last minute problem" and "an initial difference of views between the UK and Gibraltar" in the implementation of the Taxation of Savings Directives between the UK and Gibraltar and demanding a "quick resolution to the problem". There have even been calls for UK to "force" Gibraltar to comply with the Directive. These remarks are based on lack of familiarity with the facts. Gibraltar already is within the ambit of and complies with the Savings Directive.

There has been no "last minute problem", nor any difference of views. Nor, as has been said, has "Gibraltar signed up to the Directive". The Directive applies, and has always applied to Gibraltar as of right and obligation because Gibraltar is an integral part of the EU. However, as was stated jointly by the Gibraltar Government and the UK Government in a joint press statement issued by them on 1st July 2005, the Directive does not apply as between the UK and Gibraltar because we are not separate member states in relation to each other.

Nevertheless, as announced jointly on 1 July 2005 the two governments are in discussion to agree appropriate arrangements for exchange of information between them outside of the legal framework of the Directive, which does not apply between them. The two Governments have jointly announced that they are working together with a view to agreeing such arrangements during the next few months. Expectations by ill informed third parties that this should happen by the end of this month are as inappropriate as they are unrealistic.

"Crown Dependencies appear to be getting over excited about this issue", said a Gibraltar government source adding that "this is not a challenge or a difficult or controversial issue for Gibraltar or its finance centre, which is not orientated to or based on providing tax shelter to UK resident depositors affected by this Directive". Gibraltar Finance Centre has developed well beyond a dependence on the sort of business that is jeopardized by this Directive, "we are happy to enter into appropriate exchange of information arrangements with the UK at its request which it has indeed made and hence the discussions now taking place and the 1st July joint statement", highlighted the Gibraltar government source.

Source: gibnews.net