Arguing that it does not comply with the standards on transparency and exchange of information for tax purposes, the OECD evaluated Guatemala negatively and recommended working on direct access to taxpayers' banking information.
As planned, following the temporary suspension by the Constitutional Court (CC) of the article of law facilitating access to taxpayers' bank information, the Organization for Economic Cooperation and Development (OECD) decided to include Guatemala in the list of countries that do not comply with their fiscal information commitments.
In its next evaluation, the OECD could lower Guatemala's rating, because in August last year access to bank information with a court order was suspended, which could lead to an increase in the credit price.
Thirteen foreign banks with operations in New York will have to report on their relations with the Panamanian firm Mossack Fonseca including communications, telephone records and any transaction made.
An article on Bloomberg reported that the Department of Financial Services (DFS) in New York has asked 13 banks with offices in that State, among which are Deutsche Bank AG, Credit Suisse Group AG, Commerzbank AG, ABN Amro Group NV and Societe Generale SA, to provide communications, telephone records and other records of transactions, between their branches in New York and employees or agents of the law firm, Mossack Fonseca & Co. The banks in question are not accused of any wrongdoing.
This new list of tax havens is a collection of countries considered as such in at least 10 member countries of the European Union.
Despite some steps taken to establish international agreements on tax information and the adoption of other measures to avoid being considered a tax haven, Panama has been included in the list of 30 non-cooperative countries or territories on these issues by the European Commission.
The Panamanian Association of Business Executives is proposing regulating cooperatives, pawn shops and casinos, signing the memorandum of IOSCO, creating a new law on money laundering and strengthening the Financial Analysis Unit.
During the second business forum called 'gray lists: Check Mate for Panama?', the Panamanian Association of Business Executives unveiled their proposals, action lines and suggestions for improving the conditions of the country and getting off the "gray list" it has recently been included in.
According to the Superintendency of Banks, removing the country from the list will be more complex than expected, as not all sectors see it as a priority issue for the economy.
Panama needs to improve legislation and controls in the financial system in order to achieve compliance with the recommendations made by the Financial Action Task Force (FATF).
Many and varied are the interests which on one hand keep Panama on unwanted lists and on the other try to clean up the country's image as a tax haven.
Strengthening regulatory standards of bodies such as credit unions and the system of bearer shares are part of the changes that need to be made in the financial system in order to improve the country's position on this issue.
The president of the central bank said that this would prevent Guatemala from being regarded internationally as a tax haven.
This was explained by Edgar Barquín, president of the Bank of Guatemala (Banguat). He added that approval next year in the U.S. of the Foreign Account Tax Compliance Act (Facta) will be incompatible with Guatemala where there is no law to release bank secrecy.
Panama's government is to reactivate the discussion on a bill to immobilize bearer shares, with extensive consultation with the sectors involved.
The bill has the support of most international bankers and lawyers. However in the view of attorney Adolfo Linares, the law assumes submitting to the demands of the Organization for Economic Cooperation and Development (OECD), an organization which is trying to limit the jurisdiction of Panama's financial center in order to promote the interests of its member countries.
The Government will ask Congress to hasten the adoption of a law on bank secrecy, after an unofficial list of tax havens has been released in France which includes Guatemala.
According to President Pérez Molina, the country's inclusion in the French list "is a unilateral decision" of the French Government, because "Guatemala has not approved bank secrecy."
Panamanian Congress will resume discussion of the bill that immobilizes bearer shares.
Frank De Lima, Minister of Economy and Finance, has sent a report to the Organization for Cooperation and Development (OECD) to report on the postponement of the project in response to a letter from the Organization requesting a report on Panama's efforts in this area.
President Martinelli's administration has changed its position and halted the Bill on bearer shares.
This topic has been critical in heated debates regarding its usefulness, and which up until now had been advocated by the Minister of Economy and Finance, Frank De Lima.
According to an artcile in Prensa.com, "With less than two months to go before the key date for approving the bill which seeks to immobilize bearer shares, the administration of Ricardo Martinelli, who defended the move, has made a u turn and decided to suspend the debate in the National Assembly. "
Under pressure from the OECD, the government of Panama is preparing a bill to immobilize bearer shares.
Panamaamerica.com reports that "The Organization for Economic Cooperation and Development (OECD) has asked the country to immobilize, within it’s financial system, bearer shares, a measure which will allow Panama to be excluded from the list of discriminatory countries."
Representatives from the Tax Authority and the Ministry of Finance will sign agreements to exchange tax information with several countries.
S21.com.gt reports that "In Paris on Wednesday Guatemala signed an agreement to exchange financial information with 38 countries in order to get removed from the list of tax havens held by the Organization for Economic Cooperation and Development (OECD). "
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.