Trust Bloomberg BNA's Premier International Tax offering for the news and guidance to navigate the complex tax treaty networks and business regulations.
By David Haskel
Aug. 11 — Panama intends to retaliate against countries that “discriminate” against it on tax and trade issues.
Retaliatory legislation sent to the Assembly Aug. 11 “will help us better safeguard Panama and defend ourselves from discriminatory steps that have been adopted by other countries over the past few years and those that may eventually come up in the future,” Economy Minister Dulcidio De la Guardia said in a statement.
The bill contemplates substantially raising taxes on dividends and remittances sent by citizens of those countries from Panama, as well as royalties, interests, tariffs on certain goods, and implementing limitations to immigration of citizens from countries included in the list.
The legislation would restrict “contracts with the government” and “issuance of new licenses or concessions to companies from those countries,” as well as other measures the government deems adequate, the minister said.
In addition, under a decree effective Aug. 16 through year's end, the government is to increase import duties on fresh cut flowers, mineral coal, clinker, and garments. Excluded from the increase are nations that have a free trade agreement with Panama as well as members of the Central American Economic Integration Subsystem and some Latin American Integration Association (ALADI) members.
The moves come on the heels of the resignation of Nobel-laureate economist Joseph Stiglitz and the ex-chairman of the OECD's Working Group on Bribery in International Business Transactions, Mark Pieth, from an eight-member panel set up in April to help the country boost its financial and legal transparency in the aftermath of the Panama papers scandal.
“Having a committee on transparency that is not transparent itself makes no sense,” Stiglitz told the Spanish news agency Efe Aug. 6.
The Panama chapter of Transparency International Aug. 10 lamented the move, saying that without their presence the report that the remaining six local members of the panel are expected to issue soon will lack credibility.
“We have missed a chance to have a document that had generated great expectation and to show the government's commitment to transparency,” it said in a statement.
The Central American nation has been under international pressure after its financial and banking image was badly tarnished by the leak in April of 11 million documents from the local law firm Mossack Fonseca & Co., which triggered the scandal of global proportions widely known as the Panama Papers (70 ITM, 4/12/16).
To contact the reporter on this story: David Haskel in Buenos Aires at email@example.com
To contact the editor on this story: Rita McWilliams at firstname.lastname@example.org
The Ministry of Economy and Finance's announcement is at http://www.mef.gob.pa/es/noticias/Paginas/leyderetorsion.aspx.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)