Colombia names Panama a tax haven

COLOMBIA has joined some international organizations and a host of Latin American countries in declaring Panama a ”tax haven” The official decree was issued on Wednesday October 8.
The action was taken because Panama has refused to sign a tax information agreement with that country.

Colombia Tax Director Santiago Rojas said that Panama is also considered a tax haven by Brazil, Argentina, Peru, Ecuador and Chile, reports La Prensa.
The measure means the government can take action against citizens or Colombian companies that have deposited their money in Panama to reduce their tax burden. Rojas said the measure is to prevent companies and individuals from taking advantage of Panama’s low tax rates.
Minister of the Presidency Álvaro Alemán said the situation is unfortunate and misguided. Panama is one of 41 jurisdictions that have been included in the new list of tax havens issued by Colombia. In addition to the decision by Colombia, Panama this week was suspended as a voting members of the International Organization of Securities Commissions. The group said the move was made due to the lack of transparency in the country. The move was because the Panama securities market does not have the legal capacity to obtain information from banks when this is required by their peers as part of an investigation.