Posts Tagged Roberto Martinelli Offshore Banking

President Roberto Martinelli, Panama’s new president (below) has decided to take a strong stand against the anti-tax haven bullying of the Organization for Economic and Community Development (OECD).  Therefore, we believe that the Panama tax haven for offshore banking and investing remains secure.

Panama will not agree to the automatic exchange tax information demanded by the OECD and that group’s high tax, G-20 nations sponsors. Currently Panama law makes it a crime to release any financial information unless under court order and action by the new conservative dominated National Assembly would be necessary to change that law. Obtaining a court order is not an easy process and usually can only be obtained in the cases of drug trafficking, terrorism and serious financial crimes (such as ponzi schemes).

At a meeting last Thursday of a special commission charged with developing the strategy for dealing with the OECD, it was determined that Panama will hold firm to its financial privacy laws…only doing that which is beneficial for Panama.

That means Panama will be pleased to negotiate double taxation treaties that will benefit companies doing business in Panama, but the government refuses to go along with wide-open tax information agreements demanded by the OECD which automatically opens the door to one-way “fishing expeditions”.

This is a very good and firm positioning strategy and once again is a reminder to those, mostly self serving commentators and marketers, who continue to affirm that Panama has no choice but to back down and “open its books”.

Hard Line Defense of Panama’s Priorities

The High Level Commission for the Defense of International Financial Services together with the Cabinet Council approved a policy that is grounded “on the basis of national priorities,” and not on political demands by other countries.

The official policy goes even further, and restates the government’s intention to apply the existing “law of retaliation” to countries that discriminate against Panama on the basis that it is a tax haven.

This law allows sanctions and trade restrictions for those countries that discriminate against Panama. Countries mentioned were Spain, Mexico, Argentina, Peru, Ecuador and Venezuela.

Not content to stop there, Panama will also file complaints with the World Trade Organization (WTO) against nations that place Panama on phony “blacklists” and also raise the issue at the International Monetary Fund.

The Panama Chamber of Commerce, which our company is a long time member of, has come out in support of this new initiative. According to its chairman, Adolfo Linares, it is a first step to counter the unjust OECD attacks on Panama. Linares also advised the government to match its rhetoric with substance by follow through on applying Panama’s law of retaliation.

From all appearances, a very independent Panama, home to one of the world’s essential commercial waterways, is not going to allow the OECD and its high tax backers to dictate national policy. At the very least it will be a good and strong positioning strategy to start any negotiations from.