In series:Global Forum on Transparency and Exchange of Information for Tax Purposes: Peer Reviewsview more titles
Published on November 04, 2016
The Phase 2 review rates Panama overall as non-compliant with the international standard. The Phase 2 review shows that Panama experienced serious difficulties in obtaining and exchanging information for tax purposes during the three-year review period from 1 July 2012 – 30 June 2015. The Report points at a variety of reasons for this, including issues related to a disproportionate number of deemed inactive companies in Panama, the absence of requirements for entities operating outside Panama to keep accounting records, as well as deficiencies in the use of Panama’s powers to obtain and collect information. This resulted in the Panamanian Competent Authority not always obtaining and exchanging all of information requested by its treaty partners. Since the review was completed, Panama has taken a number of important steps to address the recommendations made, including amending its domestic legislation to enhance the strike off of deemed inactive companies, introduce requirements to keep accounting information for all relevant entities and enhance its access powers and enforcement provisions. A reorganisation of the Panama’s Competent Authority office, processes and procedures has also taken place since the end of the review period, with substantial new resources having been allocated. In addition, on 27 October 2016 Panama has signed the multilateral Convention on Mutual Administrative Assistance in Tax Matters greatly extending its exchange of information network. For further information on Panama’s exchange of information practices and to read the full report click here.