US signs tax treaty with Panama

US signs tax treaty with Panama

The US and Panama signed an agreement, on 30 November 2010, to exchange tax information. It will permit the US and Panama to seek information from each other on all types of national taxes in both civil and criminal matters for tax years beginning on or after 30 November 2007.

"Today, we are ushering in a new era of openness and transparency for tax information between the United States and Panama" said US Treasury Secretary Timothy Geithner in a statement after a meeting with Panama's vice president and minister of foreign affairs, Juan Carlos Varela.

Last year, some Democratic lawmakers who had criticised Panama as a tax haven demanded that Panama sign a tax information exchange agreement with the US before Congress voted on the free trade pact.

The new tax information exchange agreement, upon entry into force, will provide the US with access to the information it needs to enforce US tax laws, including information related to bank accounts in Panama.

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