30 June 2015
Global Tax Alert
News from Americas Tax Center
EY Americas Tax Center
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Panama denounces
its inclusion in the EU
Commission’s list of noncooperative tax jurisdictions
In a statement issued on 25 June 2015,1 Panama’s Government strongly opposed
the EU Commission’s inclusion of Panama on a list of jurisdictions that it considers
as non-cooperative for tax purposes.
On 17 June 2015, the EU Commission released a list of jurisdictions that it considers
as non-cooperative for tax purposes.2 The list is a compilation of domestic lists
established by EU member states. EU member states considered compliance with
transparency and exchange of information standards; absence of harmful tax
measures, other criterion in determining which countries to include on their lists.
The Organisation for Economic Co-operation and Development (OECD) responded
to this initiative by stating that: As the OECD and the Global Forum we would like to
confirm that the only agreeable assessment of countries as regards their cooperation
is made by the Global Forum and that a number of countries identified in the EU
exercise are either fully or largely compliant....3
In its statement, Panama’s Government strongly opposed the EU Commission’s
position, which it believes is not the result of an objective assessment. It also
stressed that Panama has an information exchange mechanism (under double
taxation treaties (DTT) or tax information exchange agreements (TIEA)) in effect
with the following EU members: Czech Republic, Spain, Finland, France, Ireland,
Luxemburg, Portugal, the Netherlands, the United Kingdom and Sweden. It further
stated that it has instruments signed, albeit not yet in effect, with Denmark (a TIEA)
and Italy (a DTT). A TIEA is also negotiated and about to be signed with Germany,
and a DTT with Belgium is currently under advanced negotiation.
Although not referred to in the above-mentioned
statement, it is worth mentioning that Panama took
the following steps in April 2015 to improve its tax
transparency:
• Acceleration of the bearer shares custody regime’s
implementation: The compliance due date is now
31 December 2015, instead of August 2018 for the
certificates of bearer shares issued before the law’s
effective date (i.e., 4 May 2015) that will have to be
delivered to a custodian or replaced by registered
share certificates.4
• A new Anti-Money Laundering and Terrorist Financing
regime: The new regime is now in effect and allows
access to the final beneficiary information.
• Penalties for noncompliance with record-keeping
obligation of certain corporate records: Specific
penalties for a legal entity’s noncompliance with its
obligation to update and maintain current its share
register and to keep proper records of the minutes
of board and shareholders’ meetings and resolutions
are now imposed.5
Endnotes
1.See: http://www.mire.gob.pa/noticias/2015/06/25/panama-rechaza-inclusion-en-listado-de-paraisos-fiscales.
2. See EU Commission’s press release: http://europa.eu/rapid/press-release_MEMO-15-5175_en.htm.
3. See letter to Global Forum Members signed jointly by Pascal Saint-Amans, Director of the OECD Centre for Tax
Policy and Administration and Monica Bhatia, Head of the Global Forum Secretariat: http://www.oecd.org/tax/
transparency/eucommissionsannouncementonnon-cooperativejurisdictionslettertoglobalforummembers.htm.
4. See EY Global Tax Alert, Panama amends Law on the Custody of Bearer Shares and accelerates its
implementation timeline, dated 27 April 2015.
5. See EY Global Tax Alert, Panama enacts new penalties for noncompliance with record-keeping obligation of
certain corporate records, dated 15 May 2015.
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Global Tax Alert Americas Tax Center
For additional information with respect to this Alert, please contact the following:
Ernst & Young Limited Corp., Panama City
• Luis Eduardo Ocando
+507 208 0144
• Isabel Chiri
+507 208 0112
[email protected]
[email protected]
Ernst & Young, S.A., San José, Costa Rica
• Rafael Sayagues
+506 2208 9880
• Alexandre Barbellion
+506 2208 9841
[email protected]
[email protected]
Ernst & Young LLP, Latin American Business Center, New York
• Ana Mingramm
+1 212 773 9190
[email protected]
• Enrique Perez Grovas
+1 212 773 1594
[email protected]
• Pablo Wejcman
+1 212 773 5129
[email protected]
• Leticia Arias
+1 212 773 7783
[email protected]
Ernst & Young LLP, Latin American Business Center, London
• Jose Padilla
+44 20 7760 9253
[email protected]
Global Tax Alert Americas Tax Center
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