Panama is getting very serious regarding tax collection as I pointed out in a post several weeks ago and it appears they will get even more aggressive as they identify areas where large tax leaks are occurring. Anywhere folks can make cash deals to eliminate sales taxes you can be sure they will take advantage of it. Even though the free zone in colon is to be exempt from taxes, this does not apply if the goods are going to end up in Panama. Many folks head to the free zone jewlery stores to buy goods they wear as they walk out of the zone and no one is the wiser. I guess they will have to begin strip searching to nail this one down. In any case, this half billion expected loss over a four year period is probably more guess work, like the U.S. believing that bizillions are lost to offshore tax evasions. Either way it justifies more aggressive tactics by the powers that be.
Machine translated from La Prensa
Tax evasion of transfer tax on goods and services (ITMBS) reached $ 511.6 million between 2004 and 2008, estimated the Ministry of Economy and Finance (MEF) in the Economic Report January to April this year, reported the entity.
ITMBS evasion has grown at a rate of nearly 40% in 2008 alone and amounted to $ 126.6 million.
The MEF attributed partly to blame indifferent consumers not to require their right to receive proof of payment, when they go to sites with preferential terms such as the Colon Free Zone and the duty free stores.
The MEF data did not include estimated tax evasion in 2009 and 2010 and during the administration of Ricardo Martinelli.
One of the major changes in the tax reform which entered into force in July was ITMBS raise the rate of 5% to 7%, with the aim to raise revenue by more than $ 200 million.
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