Spain Signs Information-Exchange Agreement with Three British Territories

We have all become aware that numerous governments in Europe and across the world are stepping up their game in order to prevent tax evasion and taxpayers hiding large amounts of money in secret bank accounts.

As new agreements between countries are put in place, the number of tax havens are gradually being reduced.

And as of this week there will be three fewer destinations in which Spaniards can turn to in order to stash their cash.

Although it was approved by the Spanish Cabinet of Ministers to enter into an agreement with these three British territories earlier on in the year, it wasn’t until last week that Spain actually signed on the dotted line.

First of all, an agreement between Spain and Guernsey was sealed two weeks ago, which was followed by a similar tax information exchange agreement with Jersey last week. Now it just remains for representatives from the respective governments of Spain and the Isle of Man to conclude their own contracts at the Spanish Embassy in London.

The tax information exchange agreements between Spain and Guernsey, Jersey and the Isle of Man represent a significant step forward in terms of anti-fraud measures for preventing tax evasion, and will have a major effect on the fight against international tax fraud.

From now on, Jersey, Guernsey and the Isle of Man have promised to collect and hand over all types of information relating to tax matters that could be of use to the Spanish government in collecting unpaid taxes, as well as prosecuting those that have tried to evade the law by not paying.

Included in the agreement are all State taxes related to personal income tax, non-resident tax, corporate income tax, wealth tax, inheritance tax, gift tax, capital transfer tax, stamp duty, VAT, and local income tax.

This convention to guarantee the exchange of tax-related information is applicable in a total of 68 countries and jurisdictions, and Spain remains one of the most active participants in ensuring transparency and the exchange of fiscal material between countries along with Germany, the UK, France and Italy.

Source: www.europapress.es, www.elboletin.com, www.lamoncloa.gob.es