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Spain, UK Wrangle Over Gibraltar's Tax Status

Tom Burroughes Editor London 5 May 2010

Spain, UK Wrangle Over Gibraltar's Tax Status

A treaty ending Gibraltar's status as a tax haven for Spaniards requires a British signature, a Spanish Foreign Ministry spokesman said, according to the UPI press agency, citing a report by The Times (of London).

A government spokesperson, not named, is quoted as saying: "We are working to reinforce the cooperation on fiscal issues but at the same time defending our position in international law."

The crux of the issue is that Spain does not recognize Gibraltar, a UK colony since 1704, as an independent sovereign state.

"The text is agreed and as far as we are concerned could be signed tomorrow," Gibraltar chief minister Peter Caruana said. "We don't want to be seen as a threat to Spain's public treasury."

Gibraltar has signed similar agreements with the US, France and Germany.

The tax agreement was established in principle with Spain, Gibraltar and Britain in July. Spain and Gibraltar are negotiating last-minute details, the report said.

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