Tax exchange agreement with U.S. on fast track

In spite of reservations by the local business community, including the banking system, Panama’s government is closing fast on an agreement with the U.S, on the exchange of tax information.

Many fear that the agreement, intended as another to get Panama of the OECD gray list and to help the Canada-US Free Trade Agreement (FTA) by  giving the U.S, Congress the view that, in the words of Vice President and Foreign Minister, Juan Carlos Varela  “the country as a serious and responsible financial center for the development of the region.”

On Tuesday, April 5 Varela, submitted, to the National Assembly for ratification, the Trade Promotion Authority (TPA) agreement for the exchange of tax information.

Some business leaders are concerned that  Panama could give up its fiscal sovereignty to the U.S. but Panama’s  government is seto make a joint announcement on the ratification with the U.S. government in the coming weeks. "I hope the announcement is made before Easter,” said Varela.