Friday, September 13, 2019
Panama's Cabinet Council has approved a proposed legislative amendment to enable the country to more effectively penalize repeat tax evaders.
The proposal follows the enactment of law 70 of January 31, 2019, which criminalizes tax evasion for the first time. The law specified that those individuals or the directors of companies who evade tax of USD300,000 or more can be imprisoned under the law for a period of two to four years, and must repay an amount equal or greater than the tax evaded. Prosecution may be waived when the tax owing is repaid, alongside any interest, surcharge, or penalties due.
The amendment would enable errant taxpayers to enter into an agreement with the authority for payment of the tax evaded only once.
The proposal has been sent to the National Assembly for approval.