Gibraltar lawmakers unanimously approved new legislation that will dramatically expand Gibraltar’s network of agreements for the exchange of tax information. The legislation implements OECD’s Convention on Mutual Administrative Assistance in Tax Matters in Gibraltar ahead of the March 1 deadline.
The move is part of the Government of Gibraltar’s policy of ensuring Gibraltar is recognized as being at the forefront of the international clampdown on tax dodgers.
Gibraltar had already signed bilateral tax information exchange agreements [TIEAs] with 27 countries around the world, including major governments such as German and the US.
Prior to this latest development, the Rock had also implemented the European Union’s mutual assistance directive, which provides for the exchange of tax information between member states.
The new legislation implementing the OECD convention effectively creates TIEA-equivalent provisions with some 70 countries around the globe.
It provides a framework for governments to exchange information on taxes on income and profit with a view to combating tax evasion and money laundering.
“This Government has a very clear approach to everything that relates to Gibraltar’s international relationships…and that is a culture of compliance,” said Chief Minister Fabian Picardo during a debate in Parliament.
Opposition leader Daniel Feetham welcomed the legislation, even though the “intrusive” nature of the measures meant some operators in the finance centre might view them with skepticism.
“It builds on existing measures [and is part of] a clear international trend that cannot be avoided,” he said.