Spanish tax evasion task force targets Gibraltar

(Photo: elmundo.es)

MADRID / GIBRALTAR The Spanish tax authorities (Agencia Tributaria) have created a task force aimed at stopping hundreds of millions of euros from crossing the border into Gibraltar. According to Madrid, there are still some 30,000 companies registered on the Rock - one for each member of the population, they say with irony - despite the efforts made by Government to be taken off the black list of what in Spain are called 'fiscal paradises', or tax havens. One of the concerns of the Agencia Tributaria is the number of well-heeled business people living on the Costa del Sol who daily cross the frontier with cash or bankers' drafts in millions. They evade taxes not only on cash transactions but also on other off-shore earnings - some of which is considered 'black money' or illegal gains. The task force is made up of specialists from Andalucía, Ceuta and Melilla, who will be checking on cross-border transactions, as well as financial operations on the Rock. Corporation Tax in Gibraltar is 10%, for instance, while in Spain it is 30%, which makes evasion a temptation even for legitimate business people. (A more detailed article on this subject will soon be available on SpainInformer.com)