Global forum on transparency and exchange of information for tax purposes peer reviews: Panama 2016: phase 2: implementation of the standard in practice: November 2016 (reflecting the legal and regulatory framework as at August 2016)

This report contains the 2014 "Phase 2: Implementation of the Standards in Practice" Global Forum review of Panama. Table of Contents 5 About the Global Forum 7 Abbreviations 9 Executive summary 11 Introduction 19 Introduction and methodology used for the peer review of Panama 19 Overview of Panama 21 Compliance with the Standards 27 A. Availability of information 27 Overview 27 A.1. Ownership and identity information 32 A.2. Accounting records 78 A.3. Banking information 84 B. Access to information 89 Overview 89 B.1. Competent Authority’s ability to obtain and provide information 91 B.2. Notification requirements and rights and safeguards 106 C. Exchanging information 109 Overview 109 C.1. Exchange-of-information mechanisms 111 C.2. Exchange-of-information mechanisms with all relevant partners 119 C.3. Confidentiality 121 C.4. Rights and safeguards of taxpayers and third parties 125 C.5. Timeliness of responses to requests for information 127 Summary of determinations and factors underlying recommendations 141 Annex 1: Jurisdiction’s response to the review report 149 Annex 2: List of all exchange of information mechanisms 152 Annex 3: List of all laws, regulations and other material received 154 The Global Forum on Transparency and Exchange of Information for Tax Purposes is the multilateral framework within which work in the area of tax transparency and exchange of information is carried out by over 130 jurisdictions which participate in the work of the Global Forum on an equal footing.The Global Forum is charged with in-depth monitoring and peer review of the implementation of the standards of transparency and exchange of information for tax purposes. These standards are primarily reflected in the 2002 OECD Model Agreement on Exchange of Information on Tax Matters and its commentary, and in Article 26 of the OECD Model Tax Convention on Income and on Capital and its commentary as updated in 2004, which has been incorporated in the UN Model Tax Convention All members of the Global Forum, as well as jurisdictions identified by the Global Forum as relevant to its work, are being reviewed. This process is undertaken in two phases. Phase 1 reviews assess the quality of a jurisdiction's legal and regulatory framework for the exchange of information, while Phase 2 reviews look at the practical implementation of that framework. Some Global Forum members are undergoing combined - Phase 1 plus Phase 2 - reviews. The ultimate goal is to help jurisdictions to effectively implement the international standards of transparency and exchange of information for tax purposes The standards provide for international exchange on request of foreseeably relevant information for the administration or enforcement of the domestic tax laws of a requesting party. "Fishing expeditions" are not authorised, but all foreseeably relevant information must be provided, including bank information and information held by fiduciaries, regardless of the existence of a domestic tax interest or the application of a dual criminality standard