The Organization for Economic Cooperation and Development has released a plan for the design of international standards to prevent abuse of rules such as the one that lets companies avoid paying taxes in two countries.
Nacion.com reports that "The secretary general of the OECD, Miguel Angel Gurría, accompanied by the G20 finance ministers, today in Moscow presented an ambitious plan to combat the shortcomings of countries tax systems and halting tax evasion by multinationals. "
The Tax Justice Network of Central America is proposing the elimination or reduction of these incentives, which are equivalent to 4%-6% of the region's GDP.
According to the director of the Social Forum on External Debt and Development of Honduras (Fosdeh), Maurice Bourdet, a member of the Tax Justice Network of Central America (RCJF), governments in the region "are thinking about how to carry on being tax havens, which does nothing to help reduce inequalities. "
The project aims to encourage information sharing in order to strengthen measures to prevent money laundering by the drug trade.
Argentina's tax authority (AFIP in Spanish), proposed that a multi-lateral tax information agreement be implemented, which could be adopted by Central American countries and others in Latin America, if it is approved by the Inter-American Tax Administration Center (CIAT in Spanish).
One focuses on banking, with consequences on bank confidentiality and has drawn criticism from various sectors.
Latribuna.hn published, "the former head of the National Commission of Banking and Insurance (CNBS), Gustavo Alfaro, said yesterday that there is confusion regarding the two projects related to fight against tax evasion one submitted by liberal Congressman Jose Simon Azcona Bocock and the other by Deputy Minister of Finance (MOF), Carlos Borja."
The country known for its canal is making progress toward its objective to sign at least 12 DTA in order to comply with the OECD requirements and come off the organization's list of tax havens.
Signing double taxation agreements (DTAs) has the added benefit that it may make it easier for the countries with which the information sharing agreements are reached to invest in Panama.
Finance Minister William Chong Wong affirmed they will be completely transparent when the International Monetary Fund reviews Honduras’ accounts.
The previous IMF visit to review national accounts, a compulsory process for all member states, was conducted in Honduras back in 2009, when Manuel Zelaya was still president. According to Proceso.hn, the mission “reviewed the numbers and found imbalances in public spending, mismanagement of state companies and noncompliance with the agreement signed with the Fund”.
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