Jail Threat for Tax Debtors in Panama


News from Panama / Tuesday, September 3rd, 2013

Now this will make you stay in line and pay your taxes of face five years with these bad boys.  But don’t worry, La Joya prison is schedule to open this month so there will be plenty of space.

Set over 84 acres, the $528 million project is expected for delivery in September 0f 2013. It is not only designed as a rehabilitation center but also boasts maximum and medium security cell blocks for 5,504 prisoners guarded by 600 custodians.

Fraud charges could be brought with imprisonment of up to five years for employers who do not regularize their tax situation.

The warning was made by the administrator of the National Revenue Authority (ANIP), Luis Cucalón. “The 1970 tax law says this type of fraud is punishable by multiples of unpaid tax or imprisonment up to five years,” said the official.

“… Although the Criminal Code sets no prison sentence for tax evasion, Act 52 of 2012 provides that according the Civil Code, the Tax Code prevails over any other code in tax-related matters”, reported Prensa.com.

“The Civil Code says that when there is conflict between codes, in this case between the prosecutor and the criminal, the specific prevails over the general,” said Cucalón.

The statements made by the administrator of the Anip came after the approval on the second reading of a bill authorizing a tax amnesty to taxpayers up to the fiscal year 2011.