Arguing that the country "fulfils all its commitments in terms of fiscal cooperation", the European Union decided to remove it from its list of nations and territories considered as non-cooperative.
Albania, Costa Rica, Mauritius, Serbia and Switzerland have implemented, ahead of schedule, all the reforms necessary to comply with the principles of good tax governance of the European Union (EU). These countries will be removed from Annex II of the Conclusions, according to an official statement dated 10 October 2020.
All of the OECD countries and others such as Costa Rica have agreed to the automatic exchange of tax information.
From a statement issued by the Organization for Economic Cooperation and Development (OECD ):
Paris, May 6, 2014
Bank secrecy for tax purposes is coming to an end because countries, along with major financial centers have committed to the automatic exchange of information between jurisdictions.
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. "
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).
The country has not been able to pass the first filter set by the Global Forum on Fiscal Transparency.
Accompanied by Uruguay and Barbados, among other countries, Panama is part of the list of countries that, according to the OECD, do not meet certain rules to promote tax transparency, for example, the implementation of information exchange agreements.
If Congress does not approve the bank secrecy law, the country will remain on list of countries which do not contribute to fiscal transparency.
In light of a visit by representatives of the Organization for Economic Cooperation and Development (OECD), Victor Mancilla, head of the Superintendency of Banks (SIB), reiterated to Congress the urgent need to pass the Law on Banks and Financial Groups, which would mean the elimination of bank secrecy and the need to sign agreements on tax information exchange with at least 12 countries.
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.
As the country progresses in making tax information more transparent, large fortunes seek shelter in the last tax havens, which include Panama and Costa Rica.
As the pressure imposed by the Organization for Economic Co-Operation and Development (OECD) starts to produce results, money keeps fleeing from one place to another, as its owners try to hide it from their tax authorities.
Staying at OECD’s tax-haven lists add fiscal disadvantages for transnational corporations operating in the country.
Costa Rica emerged of the “black list” of the Organization for Economic Co-Operation and Development, but is now in its “gray-list”, after assuming the commitment of negotiating tax information treaties with at least 12 countries. But of the required 12, the country has just one in place with the United States, and is negotiating another with Argentina.
Costa Rica and Guatemala were upgraded to the "Gray List", whereas Panama remains listed as a "Tax Haven".
A September 24th report by the Organisation for Economic Co-operation and Development (OECD), shows progress in the implementation of transparency and fiscal information exchange standards.
Panama remains cataloged as "a tax haven committed to adopt international fiscal standards, but who has not implemented them substantially".
For this to occur, it was enough to send a letter to the OECD, agreeing to adopt the international standard for the exchange of tax information.
Following the decision by the G20 to act against nations that fail to cooperate in the international exchange of tax information in their last meeting in London, Costa Rica had to act quickly to get out of the "black list" of countries that were not committed to adopting this standard. It was enough, like the other three countries in the same situation (Uruguay, Malaysia and Philippines), to send a document to the OECD adopting the commitment.
They are included in an OECD list of countries that have not implemented the international standard for exchanging tax information.
However, the status of each of these countries is different for the OECD. Panama and Guatemala have committed themselves to the implementation of the international standard for the exchange of tax information, but with the difference that Panama was included in a list of tax havens in the 1998 OECD Report while Guatemala was not blacklisted.
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