PANAMA signed today the Multilateral Convention on Mutual Administrative Assistance
in Tax Matters, making it the 105th jurisdiction to join the world’s leading
instrument for boosting transparency and combating cross-border tax evasion.
The signing shows that Panama is now implementing its commitment to fully cooperate
with the international community on transparency.
“Panama’s decision to sign the multilateral Convention is a confirmation of its
commitment to take the necessary steps to meet international expectations in
the fight against tax evasion,” OECD Secretary-General Angel Gurría said during
a signing ceremony with Panama’s Ambassador to France María Del Pilar Arosemena
de Alemán. “It also sends a clear signal that the international community is
united in its efforts to stamp out offshore tax evasion. We will continue our
efforts until there is nowhere left to hide.”
image009.jpgThe Global Forum on Transparency and Exchange of Information for
Tax Purposes is expected to publish in early November a peer review assessment
of how Panama’s legal framework and practices over the last three years match
up against existing international standards of transparency and exchange of information
on request. “The forthcoming report will reflect Panama’s past record on transparency
issues. Today’s signing, combined with very recent legislative changes opening
the door for wide-ranging international cooperation, illustrates the good disposition
and commitment by Panama to move forward in the area of tax transparency,” Mr
Gurría said.
The Convention provides for all forms of administrative assistance in tax matters:
exchange of information on request, spontaneous exchange, tax examinations abroad,
simultaneous tax examinations and assistance in tax collection. It guarantees
extensive safeguards for the protection of taxpayers’ rights. It also allows
automatic exchange of information on option.
The Convention is global, and is seen as a critical instrument for swift implementation
of the new Standard for Automatic Exchange of Financial Account Information in
Tax Matters developed by the OECD and G20 countries and slated to go into effect
from 2017. It will also be critical for implementation of automatic exchange
of country by country reports under the OECD/G20 Base Erosion and Profit Shifting
(BEPS) Project, and is a powerful tool in the fight against illicit financial
flows.
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