Alan Brown reports from BNamericas.

Tax contributors in Panama can now make payments to the country’s revenue service using a credit or debit card.

Taxpayers can settle their debts online, or in person at most tax offices, the finance ministry’s revenue department DGI said in a statement.

Authorities partnered with Visa International to establish the service.

Panama’s revenue chief Publio Ricardo Cortés said the move was designed to make the tax-collection system more efficient and promote the use of digital payments.

Panama is working to burnish its image as a tax evasion and money-laundering hotspot in the wake of the Panama Papers scandal.

Earlier this month finance minister Dulcidio De La Guardia (pictured) presented to congress a bill that criminalizes tax fraud.

“The draft legislation targets major tax dodgers, those with millions of dollars in revenues and don’t pay what they are meant to in taxes,” the minister said at the time.

Cases involving tax evasion of US$300,000 or more in a fiscal period fall under the draft legislation. Courts will be able to fine or imprison convicted parties.