In Panama Law 31 of 2009 empowers the tax authorities to pay a reward of 25% of any amount that the State manages to raise as a result of a complaint about tax evasion.

In his opinion article in Prensa.com, Osvaldo Lau said that the business of organizing offices that “…. are dedicated to tax allegations … have thrived in other jurisdictions, so it would not be ” … surprising to see some creative type organizing a company related to allegations of evasions, omissions, delays, appropriations, tax fraud and other offenses under the Tax Code. ”

He points out that “…The timing seems propitious because the reward is attractive, as Law 31 of 2009 provides 25% of any amount that the Treasury collects as a result of a complaint, with the added incentive that the complainant is not obliged to pay any tax (tax free) on the reward they receive. Since knowledge is power … knowing facts that qualify as tax evasion, provides the power to obtain significant revenue. ”

“…And all this is confidential, as Law 31 of 2009 requires the Tax Administration to keep the identity of the accused confidential as well as other facts about the complaint, although curiously it does not establish penalties for those who break the silence. However, if the complainant breaks confidentiality they may lose their reward.”

Source: Prensa.com