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.
The Panamanian government assures that if the law that criminalizes tax evasion is not approved, the country will be exposed to enter the FATF grey list again in 2019.
From the Ministry of Economy and Finance press release:
The Ministry of Economy and Finance considers that it is necessary for Panama that the National Assembly approve the law that increases tax evasion to a criminal offence and as a precedent for money laundering.
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.
During the discussion of a tax evasion law project, the Panamanian business sector requests that the amount defrauded to be considered a legal crime be increased from $300,000 to $500,000.
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."
The bill presented by the Varela administration in the National Assembly stipulates sanctions of 2 to 5 years and fines up to 10 times the amount defrauded.
From a statement issued by the Ministry of Economy and Finance:
January 18, 2018The Ministry of Economy and Finance (MEF) today presented to the National Assembly a bill proposing the inclusion of the crime of tax fraud as a crime in the Penal Code.
Nearly $14 million may have been defrauded from the Guatemalan treasury by a group of people who, through using front companies, issued false invoices to simulate livestock purchases.
The Superintendency of Tax Administration (SAT) released a list of 150 companies that may be involved in a case of tax evasion through the creation of ´fronted' or fake entities.
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:
The Cabinet Council approved this Friday, in an extraordinary session, a project presented by the Ministry of Economy and Finance (MEF) that seeks to protect the country's financial system.The approval was achieved after several months of debate.
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.
A proposal has been made to criminalize tax evasion in Panama, where, unlike other countries, it is only considered an administrative defect.
In order to avoid going back on the gray list and improving compliance with international standards against money laundering and fiscal transparency, the Panamanian government has presented a comparative study on tax offenses in Panama and other countries in order to start a debate on criminalizing tax evasion in the country.
The Superintendency of Securities may provide access to bank information when investigations because of breaches are carried out in the stock market.
The decree took effect on December 17, 2016, and states that when the Superintendency of Securities (SMV) requires information on bank depositors and liabilities, this will be requested through the Superintendency of Banksof Panama. In addition, the two regulators signed a memorandum of understandingto facilitate exchange of information.
The Panamanian government has announced its willingness to review current practices in the legal and financial system and collaborate with other governments in legal proceedings over financial and tax offenses.
Following the massive leak of financial information from a Panamanian law firm, the Government announced that it is evaluating the practices relating to its financial system and that it will collaborate with other jurisdictions to investigate citizens suspected of criminal activities, including tax evasion. The announcement was made by President Juan Carlos Varela.
Treasury data shows that in respect to income tax on legal persons, there was a 70% shortfall on potential revenue, representing 4.23% of GDP.
"... We are still finding fraud, smuggling, omissions, arrears and taxpayers taking advantage of weaknesses in our laws, they are still looking for ways to default on their obligations, therefore we are trying to improve controls and our tax laws," said Helio Fallas, Minister of Finance in Costa Rica.
A proposal has been made to create a special and temporary tax on assets above a certain amount in order to finance the operations of the Public Prosecutor against impunity and corruption in the state.
Ivan Velasquez, head of the International Commission against Impunity (CICIG), believes it is necessary to move on from "... discussing corruption to taking action", and therefore is proposing, together with the Public Ministry, the creation of a new tax to strengthen the institution's budget in the fight against impunity and corruption.
The General Attorney noted that the number of employers allegedly involved in customs fraud related to the case known as "The Line", could reach 1,500.
An article on S21.com reports that after consulting the Attorney General over the possible flight of businesspeople, Thelma Aldana said that "it has been ruled out because they do not know 'who is going to be cited'.
The Constitutional Court has found that the evidence presented by the prosecution is enough to have Congress to decide whether or not to remove immunity from the president.
The decision to lift the immunity of President Perez Molina so that he may face corruption charges now lies with the legislature. The component members of The Inquiry Commission will have to investigate based on the evidence presented by prosecutors, and then make a plenary decision.
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