OFF THE CUFF: Tax evasion not a crime in Panama

MOST of Panama’s legal and and economic sectors, accept the decision to fall in line with Organization of Economic Cooperation and Development (OECD) and implement the automatic exchange of tax information.
But José Alberto Álvarez president of the National Association of Lawyers (CNA) thinks that Panama still has wiggle room. He told La Prensa that if the Foreign Ministry studies the opportunity to enter in information exchanges through bilateral treaties with signatory countries, that would be a better option, although that had already drawn the ire of the OECD. H e recognized that refusing the OECD could have a substantial impact on Panama.
He was also clear that evading taxes is not a crime in Panama.
“Here this is not criminal behavior,” he said. “This point should be made clear at the negotiating table.”
The capitulation to the OECD was announced by Panama after the publication of articles related to the activities of the law firm Mossack Fonseca.
Economist Felipe Chapman said that the proposal made by the government to preserve the integration into the global financial system was a sensible move for Panama to make, as it will strengthen transparency in its financial and legal systems.
He said that Panama had two options in this matter, either make the changes or refuse to cooperate, which would have eventually isolated Panama from the world and he indicated that agreements for the exchange of tax information were most likely going to be signed by Panama at some point anyway.