Cabinet Council of Panama has approved a proposed legislative amendment to strengthen the penalty provision for repeated tax evasion. The proposal follows the enactment of law 70 of 31 January 2019, which criminalizes tax evasion for the first time.
The law specified that those who evade tax of USD300,000 or more can be imprisoned under the law for a period of 2 to 4 years, and must repay an amount equal or greater than the tax evaded. Prosecution may be waived when the tax owing is repaid, along with any interest, surcharge, or penalties due. The proposal has been sent to the National Assembly for final approval.
