Monday, December 6, 2010

U.S. now more able to enforce tax law in Panama

The United States and Panama have entered into an agreement to share information about national taxes in both countries for both civil and criminal matters in any tax year after November 2007.

The new tax information exchange agreement (TIEA) was signed by Treasury Secretary Tim Geithner and Panamanian Vice President and Minister of Foreign Affairs Juan Carlos Varela in a ceremony at the U.S. Department of the Treasury. “This bilateral agreement to provide for the exchange of tax information between our two countries reflects the commitment of the United States and Panama to the importance of transparency of tax information,” Secretary Geithner said of the TIEA.

Pursuant to the new TIEA, the United States will have access to information that will help it to enforce U.S. tax laws with respect to accounts held in Panama.