Panama in October became the 105th country to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
The OECD, which sets global standards for the exchange of tax information and tax transparency, said that the signing shows that Panama is currently implementing its cooperation with the international community to ensure transparency.
“Panama’s decision to sign a multilateral Convention, is a confirmation of its commitment to take the necessary measures to comply with international expectations in the fight against tax evasion,” said OECD Secretary-General Angel Gurría, during the signing ceremony with the Ambassador of Panama in France. “It also sends a clear signal that the international community is united we will continue our efforts for as long as there is nowhere to hide in their efforts to eradicate tax evasion on the shelf..”
Global Forum on transparency and exchange of information for tax purposes is expected to publish in early November estimate of peer review, as the legal framework and practices in Panama coincide with existing international standards of transparency and exchange of information on request during the last three years.
“Future reports will reflect the previous record of Panama on transparency. This signing, combined with the latest legislative changes, opens the door to broad international cooperation, illustrates the good location and Panama’s commitment to move forward in the area of tax transparency,” said Gurria.
For all forms of administrative assistance in tax matters Convention provides: information exchange on request, spontaneous exchanges, facilitating tax examinations abroad, simultaneous tax audits and assistance in collection of taxes. This provides greater safeguards for the protection of taxpayers’ rights. It also allows the automatic exchange of information by choice.
OECD says global convention is seen as an essential tool for the rapid implementation of the new standard for automatic exchange of financial information in tax matters developed by OECD and the G20, which is scheduled to come into force in 2017.