Panama Rolls Over And Signs Controversial Tax Agreement With The US

Panama Rolls Over And Signs Controversial Tax Agreement With The US

Wednesday, November 24 2010 @ 12:17 PM EST
Contributed by: Don Winner
Views: 262
Panama’s strategy to be removed from the gray list of the Organization for Economic Cooperation and Development (OECD) seems to have become a very difficult obstacle to overcome. The announcement of the signing of a “tax agreement” with the United States on Tuesday 30 November 2010 has aroused suspicion among legal professionals and economists in the country, mainly because the details of the agreement are unknown. Both Carlos Ernesto Gonzalez Ramirez and Roberto Troncoso think the agreement has not been released by the Ministry of Economy and Finance (MEF), so it is unknown whether the document contains some benefit for the country or whether, on the contrary, it represents more pressure on Panama and the ratification of the Free Trade Agreement by the Americans. (La Estrella)

Alberto Vallarino, Panama’s Minister of Economy and Finance

Editor’s Comment: Why not release the contents of the “tax agreement”? I already know why – because there are a whole lot of people who are going to scream bloody murder when they see what Panama gave up, that’s why. The government of Panama is motivated by being able to stick feathers in their cap. It now appears they want to secure the passage of the bilateral Free Trade Agreement between the US and Panama, almost at any cost. They have reportedly rolled over completely on the issue of bank accounts and information on US citizens in Panama – so any “privacy” is now gone. In return they got an agreement which will make Panama more attractive to tourists – in that any money spent by companies to take trips to Panama for conventions or what have you can now be deducted from their US corporate taxes. Again, the details remain to be seen, but this is almost certainly going to be a very unpopular agreement, especially among the members of the English speaking expatriate community.

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