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Canadians Beware: Panama Will “Rat You Out” Too

Article Summary:

Panama has announced that it will negotiate a tax information exchange agreement with Canada (TIEA). Once the agreement has been finalized, it will become Panama’s second TIEA after the one signed last year with the United States.

Photo Credit: Prensa

Original Article Text From Prensa via Google Translate :

Panama and Canada Negotiated Tax Information Agreement

Panama and Canada negotiated an agreement to exchange tax information Tax Information Exchange Agreements or (TIEA, for its acronym in English), which will help improve the image of this country in financial matters and transparency in banking transactions.

The decision to launch formal negotiations with Canadian authorities confirmed Friday by the Panamanian Minister of Economy and Finance, Frank De Lima.Canadá and Panama have had discussions on the subject since 2009, but the signing of an agreement to exchange information prosecutor with the U.S. in 2011 opens the possibility of achieving a similar agreement.

Panama in 2011 announced his departure from the gray list of the Organization for Economic Cooperation and Development (OECD), having signed 12 Double Taxation Treaty (DTT) with other countries. In the gray list are included states and territories “uncooperative” regarding tax information.

In this regard, De Lima said that a TIEA with Canada offers more advantages than a TDT, because fiscal sacrifice imposed on dividends and royalties paid by Canadian companies in the Panamanian jurisdiction.

Representatives of the governments of both countries signed in August 2011, in Panama City, a memorandum on the uniform regulations and the implementation and administration of the chapter on customs procedures of the Free Trade Agreement (NAFTA) signed in May 2010 in Ottawa .

In Panama operates an international banking center (CBI), with total assets in excess of 81 thousand 400 million dollars. In the system working about 96,200 employees and 91 participating banks in the world, including Canada’s Scotiabank.

The local banking authorities have rejected that Panama is a “tax haven” due to the implementation of standards and regulatory laws created to combat crimes of tax evasion, fraud, “money laundering” and terrorism.

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From Prensa

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