Monday, April 18, 2011

U.S.-Panama Tax Information Exchange Becomes Effective

The Treasury Department today announced the entry into force of a Tax Information Exchange Agreement with Panama. Signed November 30, 2010, and effective as of today, the TIEA represents implementation by both governments of their shared policy to increase tax information exchange transparency networks globally.

The TIEA will permit the United States 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 November 30, 2007.

Last year, Panama amended its domestic law to empower the government to obtain and exchange information to comply with international conventions (including TIEAs) even when such information is not of domestic tax interest (Law 33, published in Panama’s Official Gazette on June 30, 2010). In addition, Panama amended its law to address the practice of anonymous accounts known as “Bearer Shares” by requiring the law firms that incorporate businesses to conduct due diligence to verify the identity of the owners and to share that information with Panamanian authorities upon request (Law 2, “Know your Client,” published in the Official Gazette on February 1, 2011).

The agreement with Panama is the latest of several recent TIEAs to enter into force, including the U.S.-Monaco TIEA (March 11, 2010); the U.S.-Gibraltar TIEA (December 22, 2009); and the U.S.-Liechtenstein TIEA (December 4, 2009).


  1. Once again Panama is incorporated into the empire on an ad hoc basis, though perphaps a plausible argument could be made that Panama never left. As I recall, GHW Bush treated Panama like Lincoln treated the South.

    That stated, there's nothing wrong with business owners losing their anonymity. But the TIEA is the wrong way.

  2. So, are there any good places to put your money? Switzerland, Panama, Liechtenstein, Monaco... all gone.