$20 billion undeclared Colombian assets in Panama

COLOMBIA’S Finance Minister , Mauricio Cardenas, revealed on Tuesday May 17  that two thirds of people and companies related to revelations of documents of Panama law firm  Mossack Fonseca by the International Consortium of Investigative Journalists (ICIJ) evaded taxes or carried  fraudulent practices.

“The percentage of natural and legal persons who have effectively declared these investments is extremely low,” said Cardenas.

Although the Colombian government avoided assessing the escapees taxes, the Tax and Customs (DIAN) estimated that there may be assets of Colombians in Panama for about $20 billion, of which last year only half was  reported .

On April 28 Panama and Colombia agreed to sign a treaty to avoid double taxation, subject to the automatic exchange of tax information. At that time, Cardenas sent a message to his countrymen: “Declare income or assets that are based in Panama.”

The  agreement is consistent with the rules of the Common Reporting Standard of Organisation for Economic Co-operation and Development (OECD).

The document will be signed next month by Panama  president Juan Carlos Varela, and Colombian president  Juan Manuel Santos, in June.

T he head of the DIAN, Santiago Rojas, said that “there is still a large group of taxpayers who have not reported their investments abroad they have  in Panama.”

Rojas explained that companies in  cases of fraud  inflating   costs and decreasing  both profits and  tax bills have been uncovered.