Colombia declares Panama a tax haven, seeking to recoup lost revenue
Colombia declares Panama a tax haven, seeking to recoup lost revenue
BOGOTA Wed Oct 8, 2014 12:56pm EDT
Oct 8 (Reuters) - Colombia on Wednesday declared Panama a tax haven for individuals and businesses as the government looks to curb tax evasion and seeks to pressure the Central American country to sign a financial information-sharing agreement.
The move could push Colombian investors and businesses to pull out of Panama, since assets stored in declared havens are taxed at three times the rate of foreign assets in countries that share data with Colombia.
The decision may motivate Panama to sign an accord rather than risk losing investments.
Under the declaration, Colombian assets in Panama will be taxed at a rate of 33 percent, instead of the previous 10 percent rate, the country's tax authority said. If Panama signs the accord, Colombians will go back to paying the 10 percent.
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http://www.reuters.com/article/2014/10/08/colombia-panama-tax-evasion-idUSL2N0S30ZI20141008?rpc=401