Spain cannot have it both ways on tax transparency agreements say PDP

Spain "cannot have it both ways" says Gibraltar's Progressive Democratic Party.

In a statement today, which reflect my views on this issue completely (not the first time I agree entirely with the PDP I will add), the PDP say Spain "cannot constantly prosecute an unjustifiable campaign aimed at tarnishing our (Gibraltar's) finance centre for not co-operating and then when Gibraltar signs an exchange of information agreement with the United States make a diplomatic protest to the US".

The PDP statement follows reports of a complaint by the Spanish Foreign Ministry to the United States over an agreement for the exchange of tax information which the US signed with Gibraltar at the G20 Summit, at the end of March.

The PDP statement today argues that the agreement with the US "followed the same format as those with the Channel Islands", and added:

"It is absolutely right that the Government should have signed the Agreement directly and without any presence of the United Kingdom chaperoning proceedings."

In their statement today, Keith Azopardi, the PDP leader explains that Gibraltar "is fiscally sovereign and has the power to enter into these Agreements".

"Indeed, the PDP would have objected if the UK had signed such an Agreement on Gibraltar’s behalf because it would have amounted to a clear erosion of our constitutional competences."

Mr Azopardi, who served as Deputy Chief Minister of Gibraltar and Minister for Trade and Industry until 2003, in the incumbent GSD (Gibraltar Social Democrats) Government, said this was "precisely the condition" that he mentioned to the US when they first raised the possibility of signing such an Agreement during his tenure as Minister responsible for Financial Services.

Mr Azopardi is urging the Government to now "move ahead and sign up to further Agreements "so that Gibraltar’s finance centre can be placed on the OECD (Organisation for Economic Co-operation and Development) 'white-list' and taken off the so-called ‘grey’ list, a list of offshore 'jurisdictions that have committed to internationally agreed tax standards' but that have not yet substantially implemented these agreements.

Concluding the PDP statement, Mr Azopardi says the Government "has wasted the last five years" and that it should now "accept realities":

"The Government has wasted the last five years when it was obvious to all as far back as 2003 that the global environment was changing and that it would be necessary to sign up to these Agreements.

The Channel Islands started to do so in 2002 and we have lost ground in this area because of the Government’s reluctance to accept realities.

While the PDP support the signing of this Agreement it is clearly insufficient and the Government now needs to move far more quickly to catch up with our competitors!"

Amen to that Keith... Well said!

Spain's protests over US - Gibraltar tax agreement is laughable

Oh what a surprise... as once again Spain complains about Gibraltar... and this time, it really is quite laughable!

Spain's ABC daily is reporting today that the Spanish Foreign Ministry has made a formal complaint to the United States over an agreement for the exchange of tax information which the US signed with Gibraltar on 31st March.

ABC reports that the protest does not object to the agreement itself, which is considered to be positive (oh that's very good of them), but to the fact that it was signed before the Gibraltar and United States flags, as if, the paper says, "Gibraltar were independent". The British flag was not present at the signing!! Yikes!!

ABC says Luis Felipe Fernández de la Peña, the Foreign Ministry’s general director for Europe and North America, called both the US Embassy’s chief of business affairs, Arnold Chacón, and the UK Ambassador, Denise Holt, to the Foreign Ministry to pass on Spain’s objections. (Rhubarb... don't make me laugh!!)

According to ABC, London is said to have stated that delegations from the UK and Washington took part in the signing, and that normal UK protocol was followed. Spain is understood to be studying if the delegation referred to by the UK authorities is legally valid, ABC said.

The agreement signed in London by Gibraltar’s Chief Minister, Peter Caruana, and the US Treasury Secretary, Tim Geithner, is the first of a series of Tax Information Exchange Agreements which Gibraltar has committed to enter into this year.

This particular agreement was signed just days before the OECD (Organisation for Economic Co-operation and Development) published its report on progress by world financial centres towards implementing an internationally agreed standard on exchange of tax information. Gibraltar appears on the so-called ‘grey’ list, a list of offshore 'jurisdictions that have committed to internationally agreed tax standards' but that have not yet substantially implemented these agreements.

Sheesh... Gibraltar cannot win! Spanish politicians are forever complaining about Gibraltar being a 'fiscal paradise', constantly banging on with allegations (untrue) about money laundering and that we haven't signed any international agreements on tax transparency... then when Gibraltar does sign an agreement, Spain complains about it!

Mind you, to question the possible legalities of the delegation, I find is truly laughable and just shows how they clutch at straws to have a go at Gibraltar!

D'uh!! It was an agreement between Gibraltar and the USA... NOT between the UK and the USA... so it's hardly surprising that the flags present at the time were those of the USA AND Gibraltar... and NOT the UK's!!

If Spain's behaviour and constant whingeing and complaining wasn't so irritating (if not stupid as in this instance) it would be laughable. This particular one is like watching a Monty Python sketch for Christ sakes!!

Maybe they'd like to explain why they continue to refuse to enter into a tax transparency agreement with Gibraltar... (as Gibraltar has officially offered to do on at least two ocassions now). Might it have anything to do with the reasons I give in my post last week??

Damn risible hypocrites! Baaah! I wonder how long it will be, before we hear from Blanca Luz... climbing on this latest bandwagon??

"So please your Majesty, to singe the King of Spain's beard; it has grown somewhat too long."

Want another laugh?

If you would like to have another laugh you might want to have a look at the comments left by some Slop radicals on the ABC report.

One of them... manu-ao says:

"Muy bien y encima les hacemos un aeropuerto para que se muevan con mas holgura, aeropuerto que solo usan los ingleses y llanitos porque a iberia le resulta costoso por los pocos pasjeros que lo utilizaban.Entre tanto la princesa Ana paseandose tan chula por gibraltar , Obama con su amigo Zapatero,y los españoles presenciando un espectaculo lamentable."

For those non-hispanic speakers reading this, basically this guy is making some ridiculous complaint about Gibraltar's ingratitude, especially after "THEY... built us our airport"!!! Ha ha!!

I haven't got the heart to answer and correct him. Actually... to be honest, I just cannot be bothered... but it just goes to show how pathetically ill informed and twisted these radical slops are!

There are many other idiotic and ill informed remarks there too... including another one who is not aware that the actual date when Gibraltar was given away by Spain, "in perpetuity" in the, now anachronistic, Treaty of Utrecht was in 1713. This guy is convinced it was in 1710 and had something to do with Catalunya!

If anyone doesn't know and wishes to be informed about the history of Gibraltar Airport... have a look here: Gibraltar Airport @ Wikipedia, the free encyclopedia.

Gibraltar reiterates tax transparency agreement offer with Spain

The Gibraltar Government yesterday issued a statement reiterating that it has offered Spain an agreement providing for exchange of information, transparency and co-operation in tax matters in the fight against money laundering and regulation of the financial system.

The Government statement reiterated that the offer to share tax information with Spain "is not new".

A spokesperson for the Chief Minister's Office at No 6 added that it was also not "difficult to reach such an agreement at this time", a statement in response to comments made earlier last week by Spanish PSOE MP, Salvador de la Encina. The Government spokesperson added that Sr de la Encina's comments were "erroneous".

Last week, Salvador de la Encina, a PSOE MP for Cadiz had declared that "it is not Spain but the OECD (Organisation for Economic Co-operation and Development) and other international bodies", who describe Gibraltar as a 'fiscal paradise' and includes it in its 'grey list'.

The OECD 'grey list' is a list of countries, 'jurisdictions that have committed to internationally agreed tax standards' but that have not yet substantially implemented these agreements.

Speaking to the Campo press, Sr de la Encina was responding to Gibraltar Chief Minister Peter Caruana’s recent appearance before the Foro de Cadiz, stating that Spain would be delighted if Gibraltar were to be removed from such a list.

Mr Caruana said that "if from now on there is a willingness to operate with total transparency toward the Spanish Treasury in financial and fiscal matters, and Gibraltar is able to be removed from the list, that would be extremely positive".

"Spain would be delighted with that, but Gibraltar has to convince these international organisations."

Mr Caruana reiterated his offer to Spain of "total (fiscal) transparency", through an agreement for the exchange of tax information, during a conference he gave at the Foro de Cadiz this week, in an attempt to encourage Madrid to cease to consider Gibraltar a tax haven.

However Sr de la Encina declared that the Gibraltar Government should back these statements by implementing effective measures aimed at achieving greater transparency to be removed from the grey list and cease to be considered a tax haven.

The Gibraltar Government statement yesterday added that Sr de la Encina "appears not to be aware" that this was offered by Gibraltar in the run-up to the July 2008 Ministerial meeting of the Trilateral Forum in London. The offer was also included and agreed to, in the Joint Communiqué of that meeting issued by the Foreign Ministers of the UK and Spain, and Gibraltar's Chief Minister. Accordingly, the Governmnt statement added, neither the UK, nor Spain or Gibraltar "considers it difficult at this time".

The Government also said that Sr de la Encina’s statement, commenting on who is responsible for securing the removal of Gibraltar from the list of tax haven, was "also erroneous".

"Contrary to his statement, Gibraltar has not asked Spain to remove Gibraltar from any international list.

Gibraltar has offered Spain an agreement so that Spain is able to stop considering Gibraltar to be a tax haven under Spain’s own national legislation, which stipulates a clear and specific criteria for the removal of countries and territories from its own list of tax havens."

The Gibraltar Government statement concluded:

"No one in Gibraltar or elsewhere will understand any reluctance on the part of anyone in Spain to enter into an agreement of this type which delivers what Spain has criticised and demanded of Gibraltar over so many years."

As I've said before... it's a mystery to me too... but... no doubt they (Spanish politicians) will continue... ad nauseaum... to bang on about it for ever!

The question is... why does Spain continue to avoid the issue and continues to refuse to enter into a tax transparency agreement with Gibraltar?

One answer might be because it would obviously immediately take away a favourite stick of theirs. A cosh that many of their politicians, such as 'Blanca Luz'... or indeed many of their ill informed citizens... jumped up 'n'er do wells' such as 'Don Quixote de Marichalar' for instance, constantly enjoy bashing Gibraltar with at every and any opportunity!

Of course... then there's another possibility... one more Machiavellian reason why they do not want to enter into a tax transparent agreement with Gibraltar. Could it be... that they worry about what might show up... from their own inner circles? Could it be... that they don't want to kill their very own goose that's laying so many golden eggs for so many of them??

Brown's sleight of hand on Gibraltar OECD listing and 'tax havens'

Over the weekend, my friend Sancho, who as regular readers here may know, blogs over at Tilting at Windmills had a pop at Gibraltar's offshore status... which I must admit took me aback a little.

I say 'my friend' Sancho loosely, as we've never met... indeed we've never even spoken or had a conversation online... not even an exchange of emails... but I hope you and Sancho will pardon me if I describe him as 'my friend' because despite that, this is how I like to think of him, as a fellow blogger and friend. I hope it's mutual... but I have no idea.

The fact is that I enjoy reading Sancho's blog and by and large... enjoy his views and share his traditional British values of what is often termed these days as 'middle England'... something which curiously, is actually not that unusual to find on Spain's Costa del Sol where Sancho lives and blogs from!

Anyhow... the fact is that our communications have alway been 'one way traffic' with me commenting regularly on his blog posts... and sending him the occasional email 'chivving' him (as happened this weekend) when he's a little slow in approving blog post comments (me thinking he's decided not to post them). To his credit... he's always approved my comments (they've never been particularly controversial or conflictive). But... he has never acknowledged any of my emails or replied to either them or my blog comments... and that's fair enough. I have no problem with that... I'm just mentioning this as background... in order to explain this, somewhat curious (perhaps) relationship.

Anyway... getting back to Sancho's pop at Gibraltar over the weekend, I was a little surprised... as he is not one of those who constantly find one or other reason to harangue Gibraltar. My impression is that he just enjoys making observations at a distance and I have to say they are usually quite well informed, balanced and dare I say... even sympathetic.

Which is why I was a little taken aback when Sancho wrote "Gibraltar signed an accord to meet the OECD’s standards in 2002 then sat on its hands for seven years and did nothing."

Sancho's blog post was spurred by a letter sent recently by UK Prime Minister Gordon Brown, to all the British Overseas Territories and UK’s Crown Dependencies who operate offshore finance centres or so called 'tax havens', which are included in the OECD (Organisation for Economic Co-operation and Development) list of 'jurisdictions that have committed to internationally agreed tax standards' but that have not yet substantially implemented these agreements. The list includes Gibraltar, along with six other UK overseas territories, Anguilla, Bermuda, the British Virgin Islands, the Cayman Islands, Gibraltar, Montserrat and the Turks and Caicos. This OECD list also includes the UK crown dependencies of Jersey, Guernsey, and the Isle of Man who, whilst listed, have been accepted as having already 'substantially implemented the internationally agreed tax standards'... unlike Gibraltar and the other British Overseas Territories.

Gordon Brown's letter, which followed the G20 Summit, 'warned' these jurisdictions to "meet international transparency standards within six months or face sanctions".

In his blog post, Sancho wrote:

"The facts are these: Gibraltar signed an accord to meet the OECD’s standards in 2002 then sat on its hands for seven years and did nothing. Ahead of the G20 meeting it hurriedly signed a tax agreement with the USA but has seen itself demoted down the OECD’s list of “Good Guys”. Under the threat of sanctions the British Government has now given the Rock till November to get its house in order."

Sancho also questioned Gibraltar Chief Minister, Peter Caruana's confidence that he would meet Brown's timetable saying it would be "a miracle – 13 agreements in seven months after seven years of doing nothing", and concluded:

"So it still begs the questions why did Gibraltar sign the agreement in 2002 then do nothing when it could have acted and been the pace-setter amongst off-shore tax havens?

Why has it given the strong critics of tax havens a sitting target – because even if it now complies it will be the threat of sanctions that is held up as the reason – when it could have been"

Hmmm... whilst it wrankles me to hear it... I DO have to admit that Sancho has a point... in as much as I too share a discomfort in the way it seems that Gibraltar keeps giving its detractors the opportunity to have a pop at us... BUT... there ARE mitigating circumstances, as I explained to Sancho and his readers in my comment on his blog post on Sunday:

Good day Sancho...

I have to say I find your insistence on singling out Gibraltar, castigating it in the manner you do, accusing Gibraltar of "sitting on its hands" on the issue of tax transparency and bilateral agreements... a little (if not very) unfair and rather unbalanced.

Excepting the Isle of Mann and the Channel Islands, who do not depend wholly on themselves for funding their economies, Gibraltar, has done as much if not more than many other jurisdictions, in making sure they adhere to international standards as best it can, within the framework of the OECD and in the context of very competitive markets of offshore tax jurisdictions.

Gibraltar does not have a manufacturing base or the ability to earn revenue externally from agriculture or other means of production and exporting. It therefore has to rely for its income largely from two sources, tourism and the offshore financial centre.

Gibraltar is also not able to rely on other funding (nor does it wish to) from any outside sources, such as the UK as the Isle of Mann and the other Channel Islands jurisdictions in Jersey or Guernsey can do.

It is therefore hardly surprising that Gibraltar has not run around signing up to bilateral agreements with others thereby putting itself in a less attractive position... when compared to other jurisdictions, that also have not adhered to the OECD list (of 'jurisdictions that have committed to the internationally agreed tax standards' but that have not yet substantially implemented these agreements)... and not signed up to tax transparency agreements... countries such as Austria, Belgium, Luxembourg, Switzerland, Singapore and Bermuda. Nevertheless, on tax transparency issues, as I posted the other day, Gibraltar IS committed to the OECD 'tax haven' delisting and tax sharing agreements!

Issues on tax transparency are not the 'be all and end all' on offshore finance centres. In order to offer a more balanced view On Gibraltar's Finance Centre, you should also note other matters that the Gibraltar authorities are in the forefront of, as an offshore finance jurisdiction.

Far from "sitting on its hands", through the Financial Services Commission, Gibraltar has ensured it runs a very effective and well regulated Finance Centre... probably better than most. Have a look for yourself on the issue Gibraltar is most often wrongly criticised for... Gibraltar Financial Services Commission > Anti Money Laundering Provisions. On this page, you will see how the FSC openly addresses questions such as:

• What is Gibraltar’s record in the fight against money laundering?
• Does Gibraltar comply with international standards?
• What areas need updating?
• Does the fact that Gibraltar has a large company and trust management industry make it vulnerable to money launderers?
• Isn’t Gibraltar soft on some money laundering such as tax evasion?
• What are the main risks to Gibraltar from launderers?
• How have Gibraltar’s anti-money laundering provisions been verified?
• How does Gibraltar work with others in the fight against money laundering?
• Summary of the anti-money laundering provisions

You will see from this page and from a lot of other information provided 'transparently' on the Gibraltar Financial Services Commission > Anti Money Laundering Provisions, that Gibraltar, far from 'sitting on its hands' does a great deal to ensure it provides a effective and very well regulated Offshore Finance Centre, recognised as such by the IMF and other international regulatory bodies, including the OECD!

Whilst I believe it is right, in a democratic system of free enterprise, that it is a good thing to keep the regulators under scrutiny and of course Governments, I also think in fairness, these issues need to be put into context and any criticism should be a little more balanced than that normally aimed at Gibraltar.... perhaps unlike you have done on your post here today. Which is why I thought I would take the opportunity to redress this... with my comment... and I thank you for allowing me to do so! :)

A couple of Sancho's readers also commented on his post. I thought they were rather ill-informed so I answered them too!

Mark Tanner said:

"Now Gibraltar has received a warning from Brown it will be used to highlight the Rock's lack of transparency when it could have avoided this deadline by compliance."

In reply I responded that Gordon Brown's letter was directed at ALL British AND UK offshore jurisdictions or so called 'tax havens', NOT JUST Gibraltar. Namely... the seven UK overseas territories of Anguilla, Bermuda, the British Virgin Islands, the Cayman Islands, Gibraltar, Montserrat and the Turks and Caicos. Brown's letter also included the UK territorites as he sought to increase pressure on Jersey, Guernsey, and the Isle of Man – UK crown dependencies also on the OECD list.

Source: FT.com / UK / Politics and policy - Brown warns tax havens to comply

Another reader named Anthony said:

"Gibraltar was encouraged to develop its off shore financial centre as compensation for the closure of its naval dockyard. The British Government largely turned a blind eye to the lack of supervision and now that albatros is coming home to roost."

I thought this comment was a particular load of tripe and I said so. In reply to Anthony, I chose to ignore his affirmation that Gibraltar was "encouraged to develop its off shore financial centre as compensation for the closure of its naval dockyard"... couldn't be bothered with that one, it's so crass! But I did address his other point... and I'll share it with you here... as I thought my ending remark was quite amusing (well it amused me!).

With the greatest respect Anthony...that's a load of ill-informed rubbish!! If you bothered to check your facts you would have found that Gibraltar's offshore finance centre is constantly under a great deal of scrutiny in the UK Parliament. All you have to do is visit Parliament.co.uk and search their archives. A casual check for "Gibraltar Offshore" showed up over 300 instances of questions in BOTH Houses of Parliament regarding Gibraltar's finance centre in the recent past.

In the EU... if you bother to check, you will find many many instances, including cases that have gone to the European Courts of First Instance (where Gibraltar has mainly won nearly all cases) and again been very much scrutinised by the EU... under the auspices of Gibraltar's EU membership through the UK's own membership! Now... no one (at least no one well informed) would categorise this hardly as... "turning a blind eye"!

The reality is that Gibraltar (and many of the other British and UK crown dependent jurisdictions) have largely been accepted by a number of successive (I incorrectly wrote 'respective' in my original comment) UK Governments, including the present Administration, to run efficient and well policed jurisdictions. In his recent letter... Brown also stressed the importance of the tax information sharing deal reached between Gibraltar and the US, and acknowledged that Gibraltar was in well-advanced negotiations with other countries, so again, clearly not "turning a blind eye"!

If anything, what Brown is up to is covering his ass (as per usual) in the context of his pretence at leadership for the G20 countries... in the face of the difficulties all countries are facing in the Global economy and in the fight to avoid further global recession!

That.. is more what Brown's letter is about... sleight of hand spin that takes the focus away from his own Government's largely self created difficulties... and much less concern about how Gibraltar's (or other British and UK) offshore jurisdictions handle themselves.

Oh and Anthony... no 'albatross is coming home to roost' in Gibraltar. As a major world centre for bird migration, we are well used to these and other 'crows' just passing through... and moving along quite harmlessly and peaceably... even though, in their passing, they occasionally do sh**t on us from a great height!

Gibraltar committed to OECD 'tax haven' delisting and tax sharing agreements

Yesterday, I commented on a post over at Tilting at Windmills, defending Gibraltar's inclusion in the OECD (Organisation for Economic Co-operation and Development) list of 'jurisdictions that have committed to the internationally agreed tax standards' but that have not yet substantially implemented these agreements.

I was therefore very interested to read a story in the Gibraltar Chronicle today quoting a report published in the Financial Times last Friday, which I missed, saying that British Prime Minister Gordon Brown has written to the UK’s offshore tax havens, including Gibraltar, "warning them to meet international transparency standards within six months or face sanctions".

These reports say Mr Brown has told these jurisdictions to sign at least 12 bilateral tax information sharing agreements by November.

The Chronicle say that in his letter to Chief Minister Peter Caruana, Mr Brown also welcomed recent steps taken by the Gibraltar Government in this context.

He referred to a statement issued by the Gibraltar Government ahead of the G20 summit in London, in which Mr Caruana reiterated Gibraltar’s commitment to OECD standards. A Chief Minister's Office spokesman at the Convent told the Chronicle:

"The Prime Minister highlighted the fact that that statement was well received."

Mr Brown also stressed the importance of the tax information sharing deal reached between Gibraltar and the US, and acknowledged that Gibraltar was in well-advanced negotiations with other countries.

Last week, even before he had received Mr Brown’s letter, Mr Caruana said he was confident that Gibraltar "would sign at least 12 agreements by November".

In early April, following the G20 Summit, the Gibraltar Government issued a statement welcoming the global raising of standards of financial services regulation, transparency and exchange of information, saying "Gibraltar is already very well positioned and well placed to prosper from" these agreements and added that the Gibraltar Government "is very comfortable with the outcome of G20, as it affects Gibraltar".

In the aftermath of the G20 Summit, the Gibraltar Government said the OECD "appears to have adopted, as a test of 'substantial implementation' of agreed tax information exchange standards, the entry into of around 12 Tax Information Exchange Agreements".

The OECD has published a Progress Report as at 2 April 2009 in this respect.

In their statement after the G20, the Gibraltar Government added:

Since Gibraltar has not yet signed 12 agreements, Gibraltar is categorized among 'Jurisdictions that have committed to the internationally agreed tax standard, but have not yet substantially implemented'. This categorisation is accurate and fair.

The countries listed as committed but not yet substantially implemented, (like Gibraltar), include reputable EU Member States like Austria, Belgium, Luxembourg and others such as Switzerland, Singapore and Bermuda.

Gibraltar is well advanced in the process of signing up tax information exchange agreements and fully expects to be in the category of countries that have fully implemented the internationally agreed standard, by the time that the OECD issues its next progress report in November 2009.

The Gibraltar Government considers that it is right and fair that no 'black list' emerged at G20, especially not one based on a new, sudden criteria of which
committed, active countries had had no prior notice."

Concluding their statement in the aftermath of the G20 Summit, the Gibraltar Government publicly repeated their offer to all OECD countries, which was made through the OECD in November 2008 and subsequently directly to these countries, "to enter into Exchange of Information Agreements, at their request".

The reports of Mr Brown’s letter today in the Chronicle, comes just days ahead of publication of an initial report on the UK’s offshore havens. Michael Foot, a former Bank of England director who was commissioned to write the report, will publish his interim findings on April 22.

I'm sure this report will be read with great interest in Gibraltar.

These reports, in the Chronicle today and in the FT last week, gave me the opportunity to refresh my memory on the Gibraltar Government's statements on their inclusion in this OECD 'tax havens' list... and I'm pleased to say these rather underline my comment yesterday in the post over at Tilting at Windmills, when I said that Gibraltar was not "wishing to act illegally and cock a financial tax snook at the rest of the world"!

The Gibraltar Government's position is clearly one of willing co-operation and are clearly committed to meet Prime Minister Brown's deadline on bilateral tax information sharing agreements by November.

In meeting these internatonal standards and deadlines however, the Gibraltar Government must still ensure they maintain their position in safeguarding Gibraltar's independent economy, as a beneficial tax jurisdiction for high net worth individuals (HNWI's) and offshore corporations.

As I said yesterday, I'm no lawyer or international finance expert, but I imagine this is a tricky balancing act for Gibraltar... and I do hope these agreements do not put at risk, Gibraltar's ability to make it's own way economically... in difficult and changing global financial markets and tax jurisdictions.

One final point on this is that I believe the Government and Gibraltar authorities should be given credit for the commitment and effort they are showing in meeting these international standards... rather than be castigated... as they often are by the uninformed or, especially by mischievous opportunistic politicians from our neighbours to the north! As the Gibraltar Government themselves highlighted in their statement, there are many other countries listed as "committed but not yet substantially implemented", (like Gibraltar), including reputable EU Member States such as Austria, Belgium, Luxembourg, Switzerland, Singapore and Bermuda!

In conclusion, it is worth reiterating the Government's stated position that "Gibraltar is well advanced in the process of signing up to tax information exchange agreements and fully expects to be in the category of countries that have fully implemented the internationally agreed standard, by the time that the OECD issues its next progress report in November 2009".

Don Quixote is alive and well and 'tilting at Gibraltar windmills'

That most famous of literary 'Hidalgos' Don Quixote is alive and well... and these days has replaced his trusty steed Rocinante... for a jet ski!

Those of you who may be unfamiliar with the term 'Hidalgo' may like to know this is a synonym term used in the ancient Spanish colonies and territories that would become known as the Kingdoms of Castile and Aragon.

The term described a Spanish 'noble' or 'hombre rico' ('rich man'), although with time it came to colloquially mean the lower-ranking gentry, the untitled, or the non-wealthy nobility (who usually may not have owned real property).

It should be noted that Hidalgos were exempt from paying taxes. Over the years the title lost its significance, especially in Spain. Kings routinely awarded the title in exchange for personal favors. By the time of the reign of the House of Bourbon, over half a million people enjoyed tax exemptions, putting tremendous strain on the state. Attempts were made to reform the title and by the early 19th century it had entirely disappeared, along with the social class it had originally signified.

The prototypical and most famous 'hidalgo' was of course the literary fictional character Don Quijote de La Mancha (Don Quixote in English). He is often referred to as 'The Hidalgo'. His possessions allowed him a meager life devoted to his reading obsession, and his concept of honour led him to emulate knights-errant.

A perfect example of a Hidalgo... or in today's parlance, a jumped up 'upstart', might be the aristocrat, politician and 'sailor' Alvaro de Marichalar... or to give him his full title, Álvaro de Marichalar y Sáenz de Tejada!

Did I hear you say rhubarb... rhubarb or was that a huge raspberry?? Oh OK then we'll call him Don Quixote de Marichalar. If it walks like a duck, talks like a duck, etc!)

Don Quixote de Marichalar (rrrrraspberry), our modern day Hidalgo, has decided to turn his attention to tilting at a few windmills in Gibraltar!

In a letter to the Gibraltar Chronicle, published today,
Don Quixote de Marichalar (rrrrraspberry) makes a scathing attack on Gibraltar, describing the Rock as "a refuge for thousands of tax free companies known as ‘brass plate’"!

Don Quixote de Marichalar (rrrrraspberry), apparently, is no stranger to Gibraltar, as he was here some years ago during one of his highly publicised jet-ski expeditions across Mediterranean ports.

In a vain and inaccurate thrust at Gibraltar's Financial centre, our modern day Don Quixote declares:

"It is a pity that the rest of Europe condones through inaction the last colony in Europe!"

Don Quixote de Marichalar (rrrrraspberry) has made a bit of a name for himself as an 'adventurer' though it's probably more accurate to describe him, in today's society, as a 'bit of a celebrity'. Apparently he is the first person to jet ski across the Atlantic (a pointless and idiotic feat to my mind... but each to his own).

Personally, I think the likes of Sir Ranulph Fiennes or Robin Knox Johnston, might have something to say about our Hidalgo being described as an 'adventurer'!

Perhaps more pointedly, our Don Quixote de Marichalar (rrrrraspberry) was forced to retire from the Spanish Air Force following an accident, having served for only two years. That's more in keeping with my impression of inept Hidalgos tilting at windmills and coming off the worst for it!

Don Quixote de Marichalar's (rrrrraspberry) credentials as an 'aristocrat' (usually known as wasters to you and me) are a little more credible though, as his grandfather was Viscount of Eza, a Minister for War with King Alfonso XIII and Mayor of Madrid. Grandad is also known for having helped establish Spain's social security system (something that our Hidalgo may be especially grateful to his Grandad for). His brother, who either has awful taste or awful eyesight, married the Infanta Eleanor of Spain, the daughter of King Juan Carlos and Queen Sofia. Maybe, in the best traditions of 'old aristrocracy' he may instead, perhaps like his brother, also have an eye for a 'good sponge'!

So, now that we have established our Hidalgo's dubious 'authoritative' credentials for commenting on Gibraltar's finance centre, we can move on to tell you what
Don Quixote de Marichalar (rrrrraspberry) had to say.

His diatribe against Gibraltar includes describing the Eastside project as "an illegal reclamation of land from Spanish waters, using platforms erected on the Spanish seabed". This, while claiming that the Rock’s main economic activity is "money laundering as stated by the GAFI-OCDE".

At best, our Hidalgo is being 'economical with the truth'. At worse, and to my mind in point of fact, he is being mendacious and mischievous, to say the least!

This mention of 'GAFI-OCDE' refers to the (Organisation for Economic Co-operation and Development or OECD in English). It relates to a report in June 2000, when Gibraltar was among 35 jurisdictions identified by the OECD as a tax havens. This report is often mentioned by Spanish politicians (and Hidalgos), when wanting to 'put the boot' into Gibraltar. What they always fail to mention is the further reports since, from both the OECD and the IMF in particular.

These Spanish politicians, (and our Hidalgo today), fail to mention that the OECD, long after the 2000 report was published, has since accepted the commitment by Gibraltar "to implement transparency and effective exchange of information for tax purposes" and has endorsed and implemented the standards required by the OECD. This is confirmed in a number of reports since and most recently in the OECD Progress Report in April 2009.

Don Quixote de Marichalar (rrrrraspberry) also said that "Gibraltar has tailored its own fiscal regulations repeatedly declared illegal by the European Commission"!

This statement is also inaccurate... or put quite simply another way... untrue!

As a result of having made a commitment in accordance with the OECD's 2001 Progress Report on the OECD's Project on Harmful Tax Practices, Gibraltar is not included in the OECD's list of uncooperative tax havens. What's more, it has also never been listed on the FATF Blacklist of uncooperative countries in the fight against money laundering. This can simply be proved by visiting the Financial Action Task Force (FATF - GAFI) website, where a search for 'Gibraltar' will reveal... NOTHING... no document related to Gibraltar. So, our Hidalgo's statement is simply a very mendacious tilt at this windmill... in other words... in simple language... a lie!

Furthermore, in 2007, the International Monetary Fund Report on the Detailed Assessment Report on Anti-Money Laundering and Combating the Financing of Terrorism once again endorsed Gibraltar’s robust regulatory environment.

According to the report:

"Gibraltar has a well-regulated financial sector.

The Gibraltar authorities are concerned with protecting the reputation and integrity of Gibraltar as a financial center, and are cognizant of the importance of adopting and applying international regulatory standards and best supervisory practices.

Gibraltar has a good reputation internationally for cooperation and information sharing."

Emphasising Gibraltar's willingness for transparency and co-operation in respect to its Finance Centre, only last week during the G20 London Summit, probably at around the same time as our Don Quixote was sharpening his mendacious quill, US Treasury Secretary Timothy Geithner and Gibraltar's Chief Minister Peter Caruana signed an agreement that will allow the two countries to exchange tax information.

Failed in flight and failed in politics

I am reliably informed that our Don Quixote de Marichalar (rrrrraspberry) has also been tilting at a few windmills in his own country. He has been having a go at Spanish national politics and not been particularly successful here either. In 2007 he joined Rosa Diez’s UP y D party (Union Progreso y Democracia). He stood for election to parliament for the province of Soria in 2008 and 'went down a storm', failed to obtain a seat, obtaining only 1,106 votes, representing a measly 1.97% of the votes cast! At least the voters of Soria know a prize bullshitter when they see one!

Our Hidalgo seems to me to be a bit of a failed fighter pilot and failed politician... but good at jet skiing, tilting at windmills and mendaciously mouthing off about matters that really don't or shouldn't concern him. He also sounds to me a bit desperate for cheap publicity!

Don Quixote de Marichalar (rrrrraspberry), in his letter to the Chronicle, makes a number of other ridiculous claims... (including one or two other lies) that I, quite frankly, cannot be bothered to answer or refute and would sooner treat them with the contempt they deserve... ignoring them... but I will answer them if pressed (please note)!!

Anyway... as a fitting final typically nonchalant and brave act, inherent in all good windmill tilters, with a flourish of his quill, our Hidalgo has also shown great insight (if not brains), in publishing his address, presumably encouraging us (or potential sponsors) to write to him. I am happy to oblige him and reproduce his address here for those of you who might want to let him know what you think:

Calle Azalea, 82 La Moraleja, 28109 Madrid Kingdom of Spain

That 'Kingdom of Spain' bit is his idea not mine! He has also made public his email address: atlantik2002@hotmail.com.

Which all rather makes life easier for those of you who may want to extend your cordial good wishes to him, in the same way as it makes it easy for those beloved SPAM harvesters, who I hope will also take full advantage (let's hope he has a good anti virus proggie but I would doubt it).

A footnote on Hidalgos

In terms of knights-errant... our particular 'Hidalgo', the subject of our piece here today... is certainly no knight... but I do believe he is 'errant'... and definitely another candidate for a truly great sailor and Knight... our very own Sir Francis Drake!

"So please your Majesty, to singe the King of Spain's beard; it has grown somewhat too long."

Tilting at Windmills - A disclaimer

In closing, I would like to point out that this 'Gibo's Tale' today, has no connection and does not refer in any way to my esteemed colleague Sancho, who excellently blogs over at Tilting at Windmills, and who may well have something to say on the subject of our Hidalgo, if and when the urge takes him!

Gibraltar and US agree exchange of tax information

Dow Jones Newswires reported this evening on a US Treasury announcement Tuesday that they have signed an agreement with the Government of Gibraltar that will allow the two countries to exchange tax information.

US Treasury Secretary Timothy Geithner and Gibraltar's Chief Minister Peter Caruana signed the agreement in London in advance of the G20 meetings this week.

The agreement allows for the exchange of criminal tax information relating to any taxable year and civil tax information relating to taxable years beginning after 2008.

Additionally, it calls for Gibraltar to provide the US with information on bank accounts in Gibraltar.

Good to see the 'Chief' has moved very quickly and rather adeptly foiled any problems that were likely in the wake of the US Government and other countries looking at the so called 'fiscal paradises'!

There'll be some worried looks exchanged around Spain's 'elite' when they read about this! What are they going to bang on about now?? Maybe they should focus on where they put their own money!

Madoff pirates twats blanca luz and the height of hypocrisy

Spain has netted a huge fine for illegal fishing.

Andalucia must pay the record 100 million euros fine for failing to prevent the capture of rare fish and for illegal fishing off the coasts of Andalucia.

The massive fine is being levied on Spain by the European Union, after constant warnings about the illicit capture of, in particular, young boquerones and chanquetes, went unheeded.

The European Court has ruled that Spain has continually failed to control the illegal fishing in its waters.

And they have the cheek to accuse Gibraltar of 'piracy'! Don't you just love 'em? Listen to this...

Yesterday, our friend, that guiding light of Spain's right wing PP opposition party, José Ignacio Landaluce (or Blanca Luz for short), was stirring it up for Gibraltar again, no doubt whilst enjoying stuffing himself over lunch with plenty of illegal omega 3!

While the illegal fishing goes on 'Blanca Luz' has the bare faced cheek to denounce Gibraltar's "fiscal paradise" (yawn), impugning that somehow, Gibraltar is responsible for 'him who Madoff' with all those rich people's money!

Reaching out for the high (immoral) grounds of hypocrisy, 'Blanca Luz' affirmed yesterday, that the Madoff case "ratifies the denunciations" he has been "making for a long time" over Gibraltar's "money laundering" activities!

'Blanca Luz' assured that the investigations that the New York authorities intend to conduct in Gibraltar, (with which by the way he fails to mention that the Gibraltar authorities are co-operating fully), the "known destination of the money allegedly defrauded by the banker Bernard Madoff", is once again "raising the unfair competition posed to the rest of European Union countries, by the the "Rock's fiscal paradise laws".

What I would love is for that other old wily Spaniard, Judge, Baltasar Garzon, himself under fire for some supposed 'fishy tax' wrongdoings... to sort his problems out... and come and have a look at 'Blanca Luz's own tax and money affairs. I wonder where 'Blanca Luz' stashes his dosh??

I'm sure it is pure idle gossip... and well we would say this wouldn't we... but I am given to understand... from good authority... that many of Spain's top bods (and this includes in high places in political circles) have loads of dosh stashed away... in the many banks of our grand 'fiscal paradise'... but of course, they will never admit that will they?! What a bunch of hypocritical twat pirates! Sheesssh... don't it make you mad? It does me... and yes I am coming out with a touch of the vernacular as I cannot bring myself to talk propa English when discussing twats!

I wish I had the GrumpyOldTwat's grasp for imaginatively (and comically) tinkering with Photoshop... as otherwise I'd dress our friend 'Blanca Luz' up as a Johnny Depp lookalike in 'The Pirates of Andalucia'!

For his prowess in reaching heady heights of hypocrisy... I am awarding 'Blanca Luz' today... my highly honoured "Twat of the Week" award!