Panama “must try harder” says OECD report

Panama only  “partially complied” with the system of exchange of financial information during the period between on April 1, 2015, and March 31, 2018. between countries says the OECD’s  Global Forum on Transparency which develops rules on tax and tax law to eradicate tax havens

“During the review period, Panama received 302 requests for information and sent 20. Panama provided only partial information to 46% of the requests it received. Panama must ensure that it can fully respond to requests for tax information in a timely manner,” he says. The OECD

The last analysis of this type was in 2016, before the country signed the Mutual Administrative Assistance Agreement in Fiscal Matters in Paris.

Through this agreement, Panama has access to the country-by-country reports of the multinational groups to which the subsidiaries operating in the isthmus belong.

In addition, it established the obligation to the country to make accessible the reports presented in Panama by the local business conglomerates to other tax jurisdictions of the countries with which it has agreements.

In this regard, the OECD recognizes that the country has provided a robust legal framework for the fight against illicit financial flows.

“Panama has taken steps to address the recommendations, including the strengthening of controls, the elimination of inactive entities and the requirement that all entities maintain accounting records,” said OECD experts.

However, they stress that “some important challenges to ensure the availability of accounting information and information on real beneficiaries” remain pending.

“Panama must also strengthen its supervision programs to ensure that this type of information remains in practice,” they conclude.