Spain wants to attract money from financial havens

Spain wants to attract money from financial havens
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By h.b. - Mar 18, 2009 - 1:09 PM

EFE

Spain is offering impunity for those bringing money into the country from financial havens to buy public debt

The Spanish Government has announced that it has prepared, via a Royal Decree, a method to invest in public debt in Spain bringing in the money from financial havens, which will grant total impunity to the owners of the cash.

In addition such money will not be subject to tax, and the Royal Decree also cancels the obligation to declare the identity of the owner if non-resident, its country of precedence, and the amount involved.

El Mundo reports however Hacienda tax inspectors complained on Tuesday about what they consider to be the ‘ambiguity’ of the new law which comes ahead of the Spanish Government’s intention to press for the closure of financial havens at the G20 summit in London on April 2.

The new procedure is in addition to another decree a year ago which allowed the residents of financial havens to take on Spanish Public Debt without having to pay tax on the income.

Hacienda inspectors, Isabel Martínez and Francisco de la Torre, say that those to suffer under the new deal are Spaniards, and residents in Spain, who will have to pay the 18% tax which will be retained if they are individuals, and 30% if they are companies. Residents of other countries will have to meet their corresponding income tax requirements also.

The measure nevertheless shows the Spanish Government’s current need for cash to finance the increasing public debt which is a consequence of the economic crisis.

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