Regarding the request made by the Chamber of Commerce, Industry and Agriculture of Panama, the Ministry of Economy and Finance (MEF) explained that "... There are points that the guilds would like to modify, which would undermine the law project so far that its objective would be lost. Panama needs a solid proposal. To request that the amount of fraud be raised to 500,000 balboas does not demonstrate seriousness in combating money laundering."

From the MEF statement:

October 22, 2018. The Ministry of Economy and Finance (MEF) proposes that, in the absence of agreements on Laws 591 and 692, the efforts made by the Government and the private sector to seek a solid document should be considered.

Eyda Varela de Chinchilla, head of the MEF, said that "There are a few differences of opinion between what the guilds expect, but we believe that the law that seeks to criminalize tax evasion, promotes transparency which is key to raising our institutional payment of taxes to the state. It also constitutes a commitment or debt of Panama to the international community."

The improperly named Panama Papers contained many cases considered fiscal crimes in other jurisdictions, which used our legal structures, where money laundering is not a crime, which impedes the judicial cooperation of the Public Ministry with the country requesting the collaboration.

Read full statement (In Spanish).

More on this topic

Panama: Strengthen Penalties Against Evaders

January 2019

The law that criminalizes tax evasion was approved by the National Assembly when the amount defrauded in a fiscal period of one year is equal to or greater than $300.000.

With a majority vote, Project 591, which criminalizes tax evasion in the Criminal Code and is considered a crime resulting from money laundering, was approved in the third debate, informed the Legislative Assembly.

Progress in Tax Evasion Law

October 2018

The law project approved in the first debate in Panama establishes penalties of two to four years in prison for evasion of $300,000 or more and could be used as a precedent for money laundering.

The Commission of Government, Justice and Constitutional Affairs of the National Assembly, approved in the first debate the law project 591, which considers tax evasion as a crime.

Project to Penalize Tax Evasion Moves Forward

December 2017

In Panama, the Cabinet Council has approved a bill that converts tax evasion of more than $300 thousand into a felony punishable by up to 2 to 5 years and fines of up to 10 times the amount defrauded.

From a statement issued by the Presidency of Panama:

Plans to Penalize Tax Evasion

November 2017

In Panama, a bill put forward by the Varela administration proposes that tax fraud of $300 thousand or more be classified as a criminal offense, and punished with 1 to 3 years in prison.

The Ministry of Finance and Economy insists that the country is at risk of being included once again in the gray list of the Financial Action Group if tax evasion is not considered a crime. Panama is one of the few countries where tax evasion is not considered a criminal offense.