August 14, 2020

Panama highlights the commitment to strengthen its taxation, following an evaluation by the OECD

Panama on Tuesday highlighted its commitment to strengthen its fiscal system so as not to be included in discriminatory lists, after the OECD Global Forum suspended the Central American country in compliance with its transparency rules.

The Global Forum of the Organization for Economic Cooperation and Development (OECD) determined in a recent assessment that Panama only "partially" meets the standards for the exchange of fiscal information as opposed to the results obtained by seven other countries and jurisdictions evaluated.

In this evaluation, Panama fell below Andorra, Curaççao, the Dominican Republic, the Mashall Islands, Samoa and the United Arab Emirates that have made progress and have come to respect them "widely", according to the OECD Global Forum.

In the case of Panama, during the supervision period, between April 1, 2015 and March 31, 2018, it received 302 demands for tax information from other countries, but only gave 20 responses. In addition, 46% of requests received only a partial reply.

According to the Global Forum, Panama should guarantee a response in a timely manner.

The Ministry of Economy and Finance of Panama (MEF) said that of the total number of applications, the country provided partial responses in 46% of the cases (140) due to "the inability to access accounting records of Panamanian entities that do not maintain operations in the national territory, or that only function as asset holders. "

The MEF said in a statement that "the work necessary to adapt to these international commitments and improve our qualification as soon as possible has begun."

As of this date, Panama has a period of between 12 to 18 months to request a supplementary report "that allows evidence of improvements and a better qualification," added the Ministry of Economy.

He also noted that the Government of Panama "is aware of the importance of continuing to strengthen its system for transparency, to avoid being included in other discriminatory lists"

He stressed, however, that the evaluation of the OECD Global Forum on information exchange "does not represent the immediate inclusion of Panama in any discriminatory list by this agency, but serves as a benchmark in some processes of this type ".

Panama was evaluated by the OECD Global Forum regarding the execution of the exchange of information, upon request, for fiscal purposes during the period covered from April 1, 2015 to March 31, 2018.

This evaluation assesses the Panamanian legal framework for the purpose of having available and accessible information on legal property and final beneficiaries of legal entities, accounting records and bank information.

The effectiveness of the country to be able to exchange this information for international cooperation purposes is also valued.

The OECD Global Forum is comprised of more than 150 countries that are subject to evaluation based on criteria that have been adopted as international standards with the consent of all its members.

. (tagsToTranslate) Panama (t) commitment (t) strengthen (t) taxation (t) OECD

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