Colombia and Panama fail to meet deadline in tax evasion dispute

[forest444]

Colombia and Panama have given each other another 60 days to come to agreement on how to combat Colombian tax evasion through Panamanian banks.The two countries failed to meet the negotiation deadline set for the exchange of tax information after one year, extending a further 60 days, in a Colombian bid to fight money laundering and tax evasion on Panamanian soils.

The bilateral negotiations seek to enable the efficient exchange of tax information, if successful Colombia will have access to figures of savings that Colombian tax evaders are hiding in the neighboring country.

Though an exact number is not known, initially estimated to be up to $7 billion in losses for the Colombian government as citizens continue to hide money in Panama and other countries as a means of avoiding taxation. This money, Colombia’s Finance Minister Mauricio reports he believes should be used to help the poor in Colombia, and fund the post-conflict process in the aftermath of the Cuban-sponsored peace talks between Bogotá and FARC rebels.

Tensions flared between the countries last October when Colombia declared Panama a tax haven, over the Central American country’s failure to meet a deadline to sign a bilateral tax information exchange agreement. As a consequence money transfers were set to incur taxes of 33%, instead of the usual 10%.

In response Panamanian officials gave Colombia an ultimatum: if the country was not removed from the list sanctions would be placed on the country, including imposition of VISAs for travel, and tax changes, even threatening the deportation of thousands of Colombians living illegally in the country, giving the Colombian government a week to make a decision.

Panama is the largest foreign investor in Colombia after the United States, and has been one of Latin America’s fastest growing economy since 2008, showing a 6.2% GDP growth last year with 2015 forecasts to remain at this level (double Colombia’s predicted 2.8%).

Much of that growth has been driven by favorable tax structures attracting foreign investment and companies, where exemptions from income, property and import taxes are often granted. These kinds of favorable taxing laws made Panama by far the largest foreign investment market for Colombia, with over 40% of Colombia’s 2013 total going there.

At: http://colombiareports.com/colombia-and-panama-fail-to-meet-deadline-in-tax-evasion-dispute/
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Panama's gains have become everybody else's losses.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aOjRYA47d8ms

[Judi Lynn]

1. Good grief! Panama's recently departed (absconded) former President Martinelli is in trouble too,

for his enthusiastic misappropriation of large chunks of the people's money.

Colombian elites are more accustomed to having government officials handing them buttloads of the people's money in Colombia, too, rather than being required to pay their own fair taxes. One of Uribe's appointees was just dispatched to the local pretend prison for taking the money meant to go to help citizen farmers, campesinos, with their own hard working businesses. He opted to throw it all at the wealthy Colombians, including, oddly, a former Miss Colombia. Go figure.

Has Panama always been a place to hide assets for right-wing greed-driven clowns? It appears too much attention has been focused on Panama by now and they are attempting to clean up their image.

Panama is showing some very strong intentions to Colombia.

Thank you for posting this new information.