An agreement was signed to create a working group on fiscal and financial transparency cooperation, with the aim of removing Panama from the French list of non-cooperating countries in tax matters.
The Ministry of Economy and Finance of Panama reported that the working group will contribute to strengthening cooperation, improving the exchange of fiscal information, promoting financial transparency and the fight against money laundering, focusing on finding more efficient mechanisms and practices for the exchange of information for fiscal purposes, within the framework of the provisions of the tax agreements in force between the parties, including all aspects of the process, from the preparation and sending, to the receipt and response of requests for exchange of information.
Legal tax engineering is a mandatory business practice for anyone who wants to be competitive in today's globalized world, and only those who are not entrepreneurs can afford to refuse to acknowledge this fact.
EDITORIAL
With the same firmness that we criticize businesspeople who evade taxes or bribe officials to get a contract, we must defend every business practice which is framed within the law to pursue the best use of available resources to generate wealth through the production of goods and services, which is what businesses do.
The two countries signed an agreement to avoid double taxation with respect to taxes on income and to prevent tax evasion.
From a press release by the Ministry of Foreign Affairs in Panama:
The UK and Panama have signed a treaty to avoid double taxation with respect to taxes on income and to prevent tax evasion, bringing the total number of agreements of this nature signed by the Government to 18 and an equal number of nations who are mainly members European Union.
The government has designed a strategy to change the international perception of the country as a tax haven in order to avoid discriminatory measures being taken against them.
From a press release by the Ministry of Foreign Affairs of Panama:
In order to end the discriminatory measures that Panama faces by being described as a tax haven the High Level Presidential Commission for the Defense of International and Financial Services, is looking at tools that could be used to defend the country on financial issues from the moment that they start, caused by being categorised as a tax haven.
The governments of Panama and Israel have signed a treaty to avoid double taxation.
A statement from the Ministry of Foreign Affairs reads:
Panama and Israel sign Treaty to Avoid Double Taxation
Thursday, November 8, 2012
The Deputy Foreign Minister, Francisco Alvarez de Soto, who is on an official visit to the State of Israel, emphasized that holding the first session of political consultations and the signing of a treaty to avoid double taxation, represent relevant bilateral achievements.
The Cabinet Council is supporting a bill to approve an Agreement between the Republic of Panama and the Czech Republic for the avoidance of double taxation and to prevent tax evasion with respect to taxes on income and its protocol.
From a press release from the Presidency of Panama:
Cabinet approves agreement for double taxation and preventing tax evasion number 14
The French government has reported that Costa Rica will no longer appear in its list of states and territories who are non cooperative with regards to taxation.
A statement from the Presidency reads:
- Decision conducive to investment climate in the country.
- New information exchange agreements will be signed in the next few days
The Finance Minister of Costa Rica, Fernando Herrero, said Costa Rica was excluded from the list of tax havens drawn up by France in early 2010.
Before April 2012 the country will negotiate double taxation agreements with the UAE and Hungary.
The announcement was made by the Minister of Economy and Finance, Frank de Lima, during the opening of the new ordinary session of the Legislature.
"The head of the Ministry of Economy and Finance stressed the importance of the ratification by the French legislature of the double taxation agreement with Panama signed last December and its departure from the "gray list " collated by the Organization for Economic Cooperation and Development (OECD). He said that the move by France means that later this month, when France makes its list of countries with uncooperative tax policies, Panama should be left out of this category", reported Prensa.com.
In January, the first Convention of Tax Information Exchange could be signed with Australia.
In order for this convention, and others are under negotiation, to be implemented, Congress needs to approve the banking secrecy law, which would allow access to accounts relating to tax matters, a requirement of the Organization for Economic Cooperation and Development (OECD).
In light of the decision by the Finance Committee of the French Senate, the Panamanian Presidency has issued a statement:
On the morning of Wednesday, December 14, the Government of Panama received a visit by Mr. Damien Loras, special envoy of President Nicolas Sarkozy, who confirmed France’s commitment to approving the Double Taxation Treaty with Panama in order to remove our country from the French list of countries not cooperating in the exchange of tax information.
The French government has approved a bill to formalize the double taxation agreement with Panama.
The French government issued a statement after the Council of Ministers meeting which says, "The French government today approved the bill to formalize the agreement on double taxation with Panama, whose final adoption should allow the Central American country to be removed from the French list of tax havens."
If Panama does not efficiently and effectively provide the information required by foreign authorities, it will worsen the current perception of non-cooperation.
An analysis of this thorny issue made by Carlos Barsallo, president of the National Securities Commission, makes clear that since 1949, the adoption of Act 62 of 1938, Resolution 38 October 1949 and the reform of the Tax Code 1957 and subsequent regulations, have the clear purpose of turning Panama into an offshore financial services center (commonly known as a tax haven).
Both countries have agreed to start meetings in Panama, in order to sign a Double Taxation Treaty.
A press release from Panama’s Ministry of Economy and Finance states:
Following a visit by the Minister of Economy and Finance, Frank De Lima, to Britain, and also his meeting with David Hartnett of HM Revenue and Customs, both officials have agreed to start meetings in Panama, with the view to signing a Double Taxation Treaty .
After completing twelve agreements to exchange tax information with as many other countries, the OECD has announced that Costa Rica will be excluded from the gray list.
A press release from the Ministry of Finance reads:
COSTA RICA OUT OF THE LIST OF TAX HAVENS
• Bill Compliance Standard on Fiscal Transparency is essential for implementation of international agreements