The Ministry of Finance and Economy insists that the country is at risk of being included once again in the gray list of the Financial Action Group if tax evasion is not considered a crime. Panama is one of the few countries where tax evasion is not considered a criminal offense.

Prensa.com reports that “…The government has distributed among business associations and specialists a proposal for a law that establishes that tax fraud of $300 thousand or more would be considered a criminal offense, punishable with imprisonment of 1 to 3 years.”

See: “The Criminalization of Tax Evasion”

Hector Cotes, president of the Panamanian Association of Business Executives (Apede) “… suggested raising from $300,000 to $500,000 the amount for which this type of fraud is considered a criminal offense and highlighted the need to have guarantees for taxpayers. “We are worried that it will be used as a political tool,” said the union representative, who asked that the process not allow the director general of revenue to have all of the power in these cases.”