In Panama, MEF Will Replace the E-Tax System After Tax Credit Fraud Detected in Operation Pandora
The Minister of Economy and Finance, Felipe Chapman pictured below, announced that in addition to legal action, new internal controls and a new digital platform will be implemented to strengthen traceability and transparency at the General Directorate of Revenue.
“We are going to replace the E-Tax system we know today with a more robust digital platform, where each procedure is recorded and can be followed step by step.”, as announced by the Ministry of Economy and Finance of Panama (MEF)
Panama’s Ministry of Economy and Finance (MEF) will replace the vulnerable e-Tax 2.0 system with a secure digital platform after detecting a $40 million tax credit fraud scheme during Operation Pandora. The overhaul includes freezing suspicious credits, firing linked officials, and launching comprehensive audits.
Overview of Operation Pandora
- The Financial Loss: An estimated $40 million was drained from the state through illegal manipulations.
- The Method: Insiders within the General Directorate of Revenue (DGI) un-linked legitimate tax payments and changed them into fake, unapplied credits.
- The Network: Arrests included public officials, former officials, lawyers, accountants, and private business actors.
Government Action and System Replacement
- Freezing Assets: The MEF blocked the processing of all tax credits under suspicion.
- New Platform: Minister Felipe Chapman pictured below announced that a robust digital system will replace e-Tax to track every procedure and remove manual work.
- Official Inquiries: The Comptroller General initiated a full review of system vulnerabilities.
Following the corruption and fraud scheme related to tax credits and the manipulation of the e-Tax 2.0 system of the General Directorate of Revenue (DGI), which allegedly caused a financial loss of approximately $40 million, the Minister of Economy and Finance (MEF), Felipe Chapman above, announced the complete replacement of the technological platform. The Minister of Economy and Finance, Felipe Chapman, through a video published on the ministry’s social media, explained that the current e-Tax system will be replaced by a more robust digital platform, in which each procedure will be recorded and can be monitored step by step.
