OPINION: Legalized Fraud

OPINION: Legalized Fraud

Law 122 of December 31, 2019, which modified another tourism incentive law – which allowed up to 50% of the investment made in a tourism company to be considered as deductible expense of income tax – is a legalized fraud, both by the Legislative and the Executive, since that 50% from before is now, with the 2019 Law, 100%. This modification has already attracted the attention of investors who have accumulated more than $900 million so far this year alone and none of these investments benefits the country’s small hoteliers who, on the contrary, are at a clear disadvantage compared to the large ones. It is, then, $900 million that will not enter the state coffers. How can the Government give up that income with this economic crisis? It has already been done twice: in the first, it gave up hundreds of millions with Panama Port Company (PPC), and now this, only the consequences are much worse than with PPC. What is the criteria to approve this robbery? Pay favors or collect bribes? Give the country away? Being a hidden investor? Wash assets? We demand a reasonable explanation because so far we have not found any other than influence peddling. – LA PRENSA, Aug. 16