Panama Investor Blog

We Need Your Prayers and Support

To All of Sam’s Readers and Friends,

I met Sam Taliaferro 10 years ago when he was first starting to create the dream that became Valle Escondido.  Over the past six years, Sam has been my colleague, my business partner, my mentor but most importantly my friend.

If you’re reading this blog in Boquete, it’s more than likely that you’re here because of what Sam created.  Sam is almost singularly responsible for turning this small, mountain community into the place that so many people call home.  If you’re reading this blog somewhere else, it’s probably because you’ve come to know Sam as a source of unbiased news and intelligent, no-holds-barred commentary.  As long as I’ve known Sam, he has never been afraid to give me the straight, unvarnished truth – as painful or as joyful as that truth may be.

With that in mind, I’m 100% sure that Sam would want his friends and readers to know the truth about his health.  He has never been shy to tell people about his battle with cancer and the steps he was taking to win that battle.  Sam is the most focused and clear minded person I have ever met and he approached his illness with as much intensity and thought as he approached everything in life. 

On Sunday, February 6^th, Sam was experiencing some difficulties with his health and he visited his doctor on Monday.  He returned home convinced that he could overcome this latest set back as he had other incidents in the past.  Unfortunately, his condition worsened and late Monday night he was rushed to Hospital Chiriqui in David and was admitted into the intensive care ward.  He is still in intensive care and is fighting a series of infections throughout his body.

Make no mistake; Sam’s condition is extremely grave.  I can say that he is receiving the best care possible, that he is not in pain and that he is fighting this battle as best he can.  At this point, the best thing Sam’s friends and readers can do is to pray for him, keep him in your thoughts and send as many positive thoughts and feelings his way as possible.

Sam’s circle of friends, business associates and readers is in the many thousands and covers a wide area.  At the instructions of his family, I will update his blog with any news concerning his condition.

Please keep Sam and his family in your prayers.

Warm regards,

Paul McBride

Something very positive may come from my battle with cancer

Writing a blog takes a great deal of time, but I love doing it because it serves a number of purposes. It gives me an opportunity to share my views and because so many of you read it, it also gives me an opportunity to make an impact on my adopted country of Panama.I have made so many Friends both here and abroad just by being consistent in sharing the good, bad and ugly of Panama.

It also gives me a much needed release as I love to read and learn about things I consider important and share them with others. I have been writing this blog now for almost 7 years and I hope to continue to do so for years to come.

As some of you know, I have battled with throat cancer for the last two years. I was not a smoker or heavy drinker. I was infected with a virus! It has been a major struggle and the battle is not yet won. I have my good and bad days as I fight to destroy the cancer before it destroys me. This has been an epic journey for me as I have spent a great deal of time traveling and researching the latest and greatest cancer treatments around the world.

As I have been financially blessed to not only be able to do my own research, but collaborate with  a number of partners and we have found a great deal of incredible new technologies and treatments that are either available now or soon will be for a variety of degenerative diseases. One of the most promising technologies is stem cell therapy. I have gotten a great education by visiting treatment centers, conferences and research facilities over the last year or so. I believe that this new cell technology is the key to life extension and the eradication of most diseases afflicting human kind.

With all of this education I have embarked on a new endeavor. To try and bring Panama to be the top in treatments of degenerative disease and regenerative medicine. With that aim I am diligently working with the government of Panama to put together laws and regulations governing these new technologies so that Panama can reach this goal. Thus far I have had tremendous success in recruiting help with this project and have had dozens of top doctors and researches from around the world visit Panama. Panama authorities are very interested in how this can significanlty improve the health of their citizens as well as open up the country for medical tourism. In the coming months many more doctors and researchers will be visiting Panama to see how they can participate to bring Panama to an exceptional level of technologically based treatments.

As I research as much about these subjects as I do about investing in Panama, I am considering sharing regular news on these new technologies and where Panama stands on our goals in another blog. If we are successful Panama could become the place the world looks to for a gentler and more effective form of treatments that will be many years before being accepted by big pharma, the FDA and their equivalents in many "first world" countries.

It takes a lot of effort to post regularly with commentary, but if enough of my readers are interested in this subject I will take it on. Even though I am battling this dreaded disease I am blessed to be able to bring about something positive and you can help me just by reading and spreading the news. I would like as many people to know about what Panama is doing as possible.

Let me know by voting on it here.

Panama's big ambition-Science & Research

For many it will be surprising to hear that Panama is diligently working to become a center for biological research and development, but it is true. I work with on a project with Dr. Ruben Berrocal Timmons, who is secretary of Science and Technology for Panama and he is serious about getting Panama ahead in this important endeavour. Although he is a cousin of the president he is also a well qualified physician and researcher that the president recruited from his Florida practice in order to have someone he knew and trusted work in this important position. An article came out this month by McMillan publishers that will give you some idea of what is going on in this arena.

 

Excerpt:

The investment is already in evidence. In March, ground is to be
broken on a $20-million science and technology innovation park near
Panama City; construction of a $5-million vivarium for the country’s
research animals is planned for this spring; the government is funding
about 100 Panamanians to undertake doctoral studies at universities
abroad, with incentives to return to Panama for research careers; and the
first complete in-country PhD research programme — in biotechnology
— has just begun at INDICASAT-AIP. Observers say that the country’s
efforts at a scientific renaissance could even serve as a model for other
nations seeking new life after conflicts.
The change in Panamanian science amazes some, including Ira
Rubinoff, who led the US Smithsonian Tropical Research Institute
in Panama for 34 years until 2008. “If you told me this would happen
25 years ago, I would say you were smoking something illicit,” he says.

Download the rest of the story here.... Download Panama's big ambition

Italians 'dodged tax' on 50 bln of income in 2010-Panama a recipient?

According to this article Panama is one of the recipients of Italian tax dodgers and the Italian government is not happy about it. Governments around the world are going everywhere to get more money to keep them in power and we are seeing more and more going after off shore centers. Now, will Italy request in information exchange agreement, and would they get it?

MILAN — Close to 50 billion euros (68 billion dollars) in income went undeclared in Italy in 2010, a rise of 46 percent on the previous year, according to a financial police report Monday on the fight against tax evasion.

Out of over 49 billion euros unreported last year, 20 billion euros belonged to 8,850 people in employment while over 10 billion euros was sent abroad to avoid tax.

Twenty-six percent of the funds shipped abroad went to Luxembourg and 25 percent to Switzerland.

Another seven percent ended up in Britain while six percent went to Panama, the report said.

Italy has stepped up the fight against tax evasion and the underground economy in order to boost government coffers and help reduce the country's high public deficit.

In May, Prime Minister Silvio Berlusconi disclosed that nearly a quarter of the Italian economy goes untaxed, representing a loss to the state of 120 billion euros (148 billion dollars) a year.

The push to recover funds has already led to the regulation of 104.5 billion euros and has brought in 5.6 billion for the state.

According to the report, financial police also unmasked close to 4,500 people last year who were illegally claiming invalidity or poverty benefits, and seized over 110 million counterfeit products.

In the fight against organised crime, three billion euros worth of mafia-owned assets were confiscated in 2010, a rise of 30 percent compared to the previous year, while 20.5 tonnes of drugs were seized.

 

Read the rest here....

Jail for mistreating animals in Panama

As an animal lover I have happy to see some laws to protect them from abuse. I just hope they don't cary it too far. I have not seen many instances of animal abuse in Panama, but I hear it is prevalent. Here is an article from La Prensa about some old and new laws ragrding animal cruelty. Machine translated so excuse errors.

Mónica Palm
[email protected] 

 In November 2009, Edgar Santos machetes killed a dog in Quebrada Onda, in the indigenous region of Duima Nole.

 One of his neighbors complained and is now required by the Municipal Court of Remedios.  It is, officially recognized by the judiciary, the first prosecuted criminally for the crime of animal abuse.

 Santos, 28, was found "guilty rebel" and not go to court.  If one day he is convicted, is liable to a fine of 100 to 200 daily fines or community work.

 A Pascual Rodriguez, meanwhile, the second municipal judge in Columbus, criminal branch, which passed with 20 months and 12 days in jail for committing the crime against the environment and land use (in the form of anti-wildlife).

Was surprised by Colorado mountain rangers in the area of North Hut, when wearing a collared peccary and agouti are both dead, threatened and endangered species, "a 22-caliber rifle and 19 unexploded ordnance.

Against Rodriguez could be sentenced to 32 months in prison, but as we hosted a short trial and admitted the facts, reduced his sentence.

 Defined crime

 It was from May 2008, with the entry into force of new Penal Code, which established penalties for "anyone who commits acts of cruelty, causing death or seriously injures an animal used as a pet."

 Sanctions are 100 to 200 day fines or community work. However, the government deputy Victor Juliao encourages reforms to the Penal Code to punish with imprisonment those who abuse pets.

 Under a draft law presented by Juliao in August 2010, anyone who causes injury to a pet will be punished with imprisonment of one to four months and a fine of $ 100 -1000 dollars. Also, you will forfeit the animal.  If due to injury, the animal dies, the penalty is increased to double.

 "I know people who keep their pets chained long time, in dismal conditions and lack of food and proper treatment. With this legal instrument is to orient and then punish these men and women who have lost this virtue, the nobility of living in harmony with animals, "said Juliao in its preamble.

As "abuse", the draft considered not provide water or food to the animal, keep it dirty or parasites, not to provide medical treatment or hitting, kicking, dragging or overload.

 The proposal also intends to punish with a fine of $ 200 thousand dollars to practice acts of bestiality.

 Also prohibits fighting and dog racing or any other animal species into the country and performance of any show that uses circus animals.  This is punishable by confiscation of the animals, and a fine of one thousand to 45 thousand dollars. Repeat offenders will be temporarily or permanently close the premises.

 The draft, which this week was prohijado Legislative Commission on Population, Environment and Development, also prohibits the sale of animals in public.

Obstacles to experiments

The initiative proposed by the government deputy Victor Juliao also focuses on animal testing, something that until now, not under the Penal Code.

The deputy suggested that the experiments are done when no other alternative procedures to obtain the desired results, and only in cases of control, prevention, diagnosis and treatment of diseases.

No animal may be used more than once in the experiments and these will be taken care of, fed and cured, before and after practice.  For the experiment, the animals have to be sedated, tranquilized or anesthetized.

 Euthanasia when the animal shall only be with mutilation, blindness or severe pain.

New Howard Johnson Hotel announced and Wyndham opens

Yesterday he laid the first stone of the Howard Johnson hotel to be built in via Argentina and will have 100 rooms The project represents an investment of $ 9 million and should be ready in the third quarter of 2012.

Yesterday also formally opened the Wyndham Garden, located in the area of Obarrio, which will have 70 rooms.

Panama has no lender of last resort, and that's a good thing!

This is an opinion piece from La Prensa which gives a good overview of why Panama banks were not and hopefully will not be so affected by the financial crises that has/is affecting the rest of the world.

PHILIP CHAPMAN *
[email protected] 

OPINION. The recent economic crisis has been dubbed the Great Recession, which was catalyzed by excesses of the financial industry. Consequently, many governments have injected huge amounts of taxpayer money to keep afloat their financial systems, resulting in most cases, unsustainable levels of debt, further exacerbating their problems.

 In our beloved tropics, we often wonder why Panama suffered minor consequences.  The answer is complex and includes several elements, among which is a good banking supervision, the good work of many people, especially the last two-superintendents, their staff and members of various boards.

 Despite the evils of our political immaturity, banking supervision has been able to enjoy relative independence and autonomy from the modernization of 1998. Other elements are as important as market rules, making Panama a rare case where fortunately no central bank, there is no lender of last resort and not have a deposit insurance program.

The absence of these reduces moral hazard, clearly present in markets with firms became too large to drop (too big to fail) by fears of contagion and systemic risk in the financial industry and the economy in general.

 This causes undesirable behavior and even irrational excessive risk taking, so far mostly absent in Panama, except of course known exceptions for which we have gone quite happily away with it, no transmission or systemic implications.

 The mere fact of listening to the possibility of setting up a mechanism that makes the lender of last resort and for the equivalent of a deposit insurance program, causing concern and uncertainty, the best.

 During the recent global crisis coupled with an important local real estate expansion, our bankers acted more prudently than their counterparts elsewhere, largely by the absence of such a body which may assist, therefore, subjected to pure forces market.  The main unintended consequence we suffered was an excess of conservatism that has crippled credit, bank liquidity increased significantly and exacerbated the slowdown in economic growth.

 In retrospect, was a consequence rather less severe than that suffered by major economies are much more developed than ours.  I am inclined to be very jealous of the quality of loan portfolios and investment banks, have good supplies, high levels of capitalization and reasonable levels of liquidity, foreign and reject the recommendation to introduce a lender of last resort and deposit insurance program, which is always paid for by consumers.

Panama will still allow bearer shares but...

A new bill that has passed through the assembly seeks to qualm the fears of many foreign investors in Panama who have used bearer shares in the past. The OECD had demanded that Panama eliminate this form of privacy of anonymous share ownership. Now as long as the resident agent complies with the "know your customer" rules which means he or she knows who the holders of those shares are, then all is ok. The only problem with this is the fact that the fine for divulging any private information about the client is between $1000-25000. Why such a gap and why not some jail time? Also, bearer shares are meant to be able to transfer by handing them over to anyone at anytime. So, this will only be viable if the resident agent is officially informed and then he/she must vet the new holder of the shares. Bearer shares are always a risky business, but the purpose of them is to hide the owner from anyone and now they are exposed to a Panama attorney who may receive a slap on the wrist should he give up information. Although it states in the article below that no one but a court can request information, the new tax information exchange agreement with the U.S. does not say that. The IRS only needs cause. So now the Panama legal entities can still market and claim to have bearer shares, although their value is dubious if you are from the U.S. IMO.

 Bill offers privacy guarantee

La nueva legislación permite que Panamá siga manteniendo su régimen de acciones al portador y la privacidad de la información. The new legislation allows Panama continues to maintain its system of bearer shares and information privacy.

   Edith Castillo Duarte
  [email protected]

 Resident agents (lawyers or firms) will be required to implement measures to meet their customers and thus contribute to the fight against money laundering, terrorist financing and tax fraud nationally and internationally, through exchange of information in tax matters.

 This legislation, approved last week by the National Assembly, third debate, states that the resident agents should require their customers satisfactory evidence of identity or the final beneficiary and when the stock certificates of these are issued to the bearer.

 The information must be kept strictly confidential and can only be supplied to the competent authorities, which will be requested in compliance with the laws.

 Violations of the covenant of attorney-client confidentiality with respect to the rules of "know your customer" shall be punished by a fine of one thousand dollars to 25 thousand dollars.

These requirements shall be due six months after the entry into force of this law for all resident agent to incorporate a new legal entity.

 The deputy economy minister, Frank De Lima, believes that the law strengthens the international services sector. "We maintain competitive advantages such as bearer shares (other jurisdictions have been removed), nor are immobilized bearer shares as have other jurisdictions."

 We also include the elements required to give effect to tax treaties that Panama has signed.

 According to Gian Castillero, the International Bar Association, the project requires "reasonable and easy obligations to comply" with any lawyer who served as resident agent either do so in a law firm or as independent counsel.

Overall, the guild said it was satisfied with what was adopted in view of raising a good balance between the responsibility of the resident agent, guarantees privacy of information required by users of international services (which allows Panama remains an attractive jurisdiction) and the responsibilities of lawyers providing the service.

 "The new legislation allows Panama to continue to maintain its system of bearer shares, which is a jurisdiction that guarantees the privacy of customer information and make it an attractive jurisdiction for international customers," he said.

  PANAMA, THE OECD AND CONVENTIONS

13 - Panama treaties negotiated by the OECD to lead the country out of the gray list.

10 - Number of agreements that Panama has signed.

1 - treaty to exchange tax information with the U.S..