Ecuador’s Listing of Tax Havens will now remove Panama
Mulino, below left, had words of recognition for his Ecuadorian colleague, Daniel Noboa, below right, for “his support and leadership.”
The tax agencies of Panama and Ecuador signed an agreement this Thursday that will allow the Central American country to be removed from Ecuador’s list of tax havens, announced Panamanian President José Raúl Mulino. “Today at noon, a tax information exchange agreement will be signed between the General Directorate of Revenue (DGI) and the Internal Revenue Service of Ecuador. This is of utmost importance for both nations, especially because with this, Panama will be removed from Ecuador’s list of tax havens,” Mulino declared during his weekly press conference.
Signing of the Agreement with Ecuador Ends Panama’s 17-Year Stay on the Tax Haven List
The head of state praised his Ecuadorian counterpart, Daniel Noboa, for “the support and leadership” that led to the signing of the tax agreement and Panama’s subsequent removal from the discriminatory list, which is “the fruit of conversations and rapprochements” between the two sides on the matter. Ecuador’s removal from the list “is another step in the right direction that I have proposed and is part of my government’s efforts to remove itself from all discriminatory lists and actions to improve public policies, including the application for admission to the Organization for Economic Cooperation and Development (OECD),” Mulino added.
According to official Panamanian information, Ecuador has kept Panama on the list of tax havens since 2008. The Central American country recently left a European Union (EU) money laundering list and, at the end of 2023, also from the Financial Action Task Force (FATF) gray list. “Panama has taken steps with the United States and the European community, which makes it easier for our country to continue along these lines and be able to lift any restrictions or tax haven lists,” Noboa stated on June 29 in Seville, Spain, after a meeting with President Mulino, in which they discussed not only the tax issue but also cooperation in the areas of logistics and energy. Ecuador “is an important user of the Panama Canal,” Mulino emphasized, explaining to his Ecuadorian counterpart the canal’s plans to build a new reservoir to guarantee its water supply, according to the Ecuadorian government.
