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According to news sources the upcoming G20 summit will be discussing tax havens. As everyone has lost money in the recession, except those countries that have attracted investment, the vultures are circling looking for easy pickings. Panama is known as a tax haven. The banking privacy laws are strong in Panama. Panama oversees its bank accounts and illegal dealings such as the recent pyramid scheme do not find refuge in Panama.

Panama as a Tax Haven

Panama has strict banking privacy laws as well as anonymous corporations and foundations for those wishing to add a little privacy to their financial dealings.

Panama Bear Share Corporation

A Panama bearer share corporation has no recorded owner. The owner of a Panama bearer share corporation holds physical certificates of stock of the corporation. The Panamanian public registry has no record of the person’s name.
The certificates for a Panama bearer share corporation do not need to be kept in Panama nor do any records of the corporation need to be kept in Panama. So long as the Panama bearer share corporation derives none of its income from business in Panama it need not pay taxes in Panama or even file tax papers in Panama.
After formation of the corporation the Panama bearer share corporation stock certificates can be transferred to another owner without the original lawyer being involved. This is an alternative to use of a trust or will for passing on assets to your heirs.

Panama Private Interest Foundation

A Panama private interest foundation can own assets anywhere in the world. This includes real estate, companies, bank accounts, patents, personal assets such as airplanes, cars, etc., stocks and bonds, royalty rights, and collectibles such as coins and stamps as a partial list.

An example of the asset protection of a Panama private interest foundation is that there is a three year statute of limitations on “fraudulent conveyance.” That is after three years no on can successfully challenge you in a Panamanian court for transferring assets to the foundation. Thus a Panama foundation will provide long term asset protection free from challenge of foreign jurisdictions after the initial three year period.

Panama Banking

Bank employees or employees of the Panama banking commission are subject to criminal penalties if they should reveal any private banking information found out in the normal pursuit of their duties. This is spelled out in Panama law.

For another level of bank account privacy Panama law specifies that any regulatory activities of the banking commission be carried out on a collective basis and not on individual accounts.

On the other hand illegal money from Colombia’s recent pyramid scheme found its way into a Panama bank and the account holder was given his money and eventually reported to authorities.

International Concern about Tax Havens

As the world is looking for assets that evaporated in the recent economic down turn they will go poking around countries such as Switzerland and Panama. However, if you have done nothing wrong in putting you money here in Panama in the first place, Panama is not interested in requests from other foreign entities for information.

For more information on the status of Panama’s banking and corporate privacy situation contact us at ABPanama for a referral to a trustworthy and competent Panama attorney.