Panama files dispute against Argentina’s trade measures in goods and services
Panama has notified the WTO Secretariat, 12 December 2012, of a request for consultations with Argentina on alleged discrimination and restrictions in certain measures applied by Argentina to trade in goods and services.
This is the eighth dispute involving Argentina notified to the WTO Secretariat since May this year. The other disputes are cases filed by the European Union, the United States, Japan and Mexico against Argentina, a case filed by Argentina against the European Union and two cases against the United States.
> Further information will be available within the next few days in document WT/DS453/1
What is a request for consultations?
The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.
Business Law Attorney Alvaro Aguilar’s Radio Interview Addresses Concerns and Impact of Impending Legal Action on the Financial Center
FOR IMMEDIATE RELEASE
Panama City
PRLog (Press Release) - Nov. 15, 2012 - Attorney Alvaro Aguilar, partner at Lombardi Aguilar Group, said that Panama incorporators have in place know-your-customer laws which do not exist in the U.S. and European countries which deem the Isthmus as an “uncooperative” jurisdiction. Aguilar was recently interviewed on Omega Stereo www.omegastereo.com about a recent study by Australian university professor Jason Sharman comparing Panama's due diligence system for incorporations with those of Organization of Economic Cooperation and Development (OECD) member states.
“Since the 1930s Panama has stood out as an international financial and logistical center, in the face of larger centers such as London and New York”, said Aguilar, who specializes in formation of corporations, trusts and foundations for business purposes. “The contradiction that more than half of the OECD members are allowed to have bearer shares, some with immobilization, has no other motive than to slowly erode the competitiveness of a financial center which has always been independent.”
Aguilar reminded listeners the circumstances under which the Panama corporate system originated in the 1930s. When totalitarian countries threatened Europe, Ships owned by Panama companies were leased by the then neutral US to assist the United Kingdom in its war effort. Other companies owned Panama-flag ships used to take Jewish refugees to the territory of Palestine. "Bearer shares of said companies were an element in choosing Panama for said operations" said Aguilar. He mentioned several cases in Eastern Europe and Latin America of businessmen in currently using Panama companies with bearer shares to shelter from authoritarian regimes the personal assets they have earned.
According to the Sharman study, "available evidence strongly suggests that Panama is significantly more compliant with international beneficial ownership standards than many OECD countries, especially the United States". 20 out of 34 OECD countries allow bearer shares, and have not immobilised them, including important financial centers like the UK. Panama is not a member of the OECD. Aguilar also pointed out that the England and the U.S. state of Wyoming have business entities authorized by law to issue bearer scrip and bearer share warrants without being surrendered for immobilization.
A plan for immobilization of bearer shares of Panama companies has been opposed by the University of Panama School of Law and several local practitioners.
Mr. Aguilar is a graduate of Universidad Santa Maria la Antigua (LLB) and Washington College of Law at The American University (LLM) International Trade & Banking program. Previously he has been selected by the Central American business weekly CAPITAL FINANCIERO as one of the "40 under 40" acknowledging to his achievements as a young legal professional. He specializes in corporation law and trust & estates matters.
About Lombardi Aguilar Group
Lombardi Aguilar Group is a partnership of consultants created as an alternative for clients worldwide who seek fast, innovative and effective solutions to their legal problems. The firm currently provides services to individual and corporate clients in Panama as well in the Americas, Europe and Asia. Its partners maintain a commitment with professional ethics and social responsibility by participating in the board of directors of groups such as the Panama Bar Association, the Alliance Francaise, the German and the American Chambers of Commerce (AMCHAM) of Panama, and the Association of Chinese-Panamanian Professionals (APROCHIPA).
The firm centers its law practice in private client services and asset protection (Private Interest Foundations, Trusts), business structures (Offshore Corporations), tax planning, real estate and e-commerce. It also advices in areas of Law such as Corporate, Commercial, Intellectual Property, Maritime, Tax, Environmental and Immigration Law as well as related litigation.
For more information, contact +507 6638-8707 +507 396-5080, e-mail info (at) laglex.com, or see: Lombardi Aguilar Group http://www.laglawyers.com/
RAK Offshore also provides an ideal location to establish various kinds of offshore trusts. An offshore trust is a light and versatile vehicle that can be used as a direct investment that offers great income, tax, and inheritance advantages. An offshore trust can also be used to hold companies or other assets under the RAK Offshore Special Corporate Trusts Regulations.
The key elements of a RAK Offshore trust are:
The Deed: A constitution or legal agreement which sets out the duties and responsibilities of the trustees, the rights of beneficiaries as well as the specifics governing the trust property.
The Settler or Grantor: The person or entity who establishes the trust and lays down its rules
The Trustee: A licensed individual legally appointed to receive the trust property and to manage it in accordance to the terms of the trust deed.
The Beneficiaries: The persons or entities entitled to the benefits of the trust property
The Protector or Protection Committee: The person or people appointed by the settler as a guardian over the trustee and the trust property.
Trusts can be discretionary of nondiscretionary. In discretionary trusts, ownership, control, income and capital distribution vest in the trustees. The beneficiaries of the trust are not entitled to any benefits until the trustees exercise their absolute discretion. In non-discretionary trusts, the trustees have no discretion and all amounts accrue to the beneficiaries as of right.
Why choose RAK offshore for your trust
Trusts are a flexible way of handling both private and corporate affairs and there are numerous reasons to settle a trust with RAK Offshore.
Education Trusts: Income and capital are accumulated within the trust until the actualization of a conditional event. For example, a trust to fund the education of your children or grandchildren.
Employee Trusts: For holding pension fund monies or for employee incentive schemes
Spendthrift Trusts: For protecting prodigal or immature beneficiaries
Grantor Trusts: The settler retains control over income or capital, or retains power to revoke the trust
Charitable Trusts and Foundations: For advancing charitable causes. The distinct advantage of charitable trusts is that they are normally granted tax relief provided they meet certain requirements.
Corporate Trusts: For a business owner who wants to keep management control of his company, while transferring it to a beneficiary.
RAKOffshore also provides an ideal location to establish various kind of offshore trusts. An offshore trust is a light and versatile vehicle that can be used as a direct investment that offers greatincome, tax, and inheritance advantages. An offshore trust can also be used to hold companies or other assets under the RAK Offshore Special Corporate Trusts Regulations.
The key elements of a RAK Offshore trust are:
The Deed: A constitution or legal agreement which sets out the duties and responsibilities of the trustees, the rights of beneficiaries as well as the specifics governing the trust property.
The Settlor or Grantor: The person or entity who establishes the trust and lays down its rules
The Trustee:A licensed individual legally appointed to receive the trust property and to manage it in accordance to the terms of the trust deed.
The Beneficiaries:The persons or entities entitled to the benefits of the trust property
The Protector or Protection Committee: The person or people appointed by the settler as a guardian over the trustee and the trust property.
Trusts can be discretionary of nondiscretionary. In discretionary trusts, ownership, control, income and capital distribution vest in the trustees. The beneficiaries of the trust are not entitled to any benefits until the trustees exercise their absolute discretion. In non-discretionary trusts, the trustees have no discretion and all amounts accrue to the beneficiaries as of right.
Why
choose RAK offshore for your trust
Trusts are a flexible way of handling both private and corporate affairs and there are numerous reasons to settle a trust with RAK Offshore.
need, from avoiding forced heirship or managing your employee benefits to establishing a charitable organization or simply protecting assets.
The
range of trusts offered by RAK Offshore are:
Education Trusts:Income and capital are accumulated within the trust until the actualization of a conditional event. For example, a trust to fund the education of your children or grandchildren.
Employee Trusts:For holding pension fund monies or for employee incentive schemes
Spendthrift Trusts:For protecting prodigal or immature beneficiaries
Grantor Trusts:The settler retains control over income or capital, or retains power to revoke the trust
Charitable Trusts and Foundations: For advancing charitable causes. The distinct advantage of charitable trusts is that they are normally granted tax relief provided they meet certain requirements.
Corporate Trusts:For a business owner who wants to keep management control of his company, while transferring it to a beneficiary.
RAK Offshore Trusts
Minimum
Assets
No
Charitable
Purpose Trust
Yes, but tighter control on charitable trusts
Perpetuity Period
99 years Wait and see provision Do not apply to charitable trusts
Re-domiciliation
Possible in and out
Choice of Proper Law
Very liberal
Different laws can govern a trust
Revocable and Irrevocable
Yes
Accumulation
Possible
Registration of Trusts
Yes, anonymous
Exchange Control
No
License for Trustees
Yes
Confidentiality Rules
Strict
Financial Disclosure
Yes
Foreign Court Awards (for trust taking the law of the jurisdiction)
Immunity
Time Limit to bring Suit
2 years
Fraudulent Dispositions
Yes
Forced Heirship Excluded
Yes
Number of Trustees
1 to 4
Trustee as Beneficiary or Settler
All combinations possible
Protectors
Office of protectors allowed
Financial Guaranties
Yes
Tax Treaties
Yes
Compliant with the Hague International Convention on Trusts
Yes
Flexible types of trusts available combined with liberal asset-protection provisions
Strong protection for customer money
Liberal choice of law governing the trust and the option of re-domiciliation
No minimum amount of property
Compelling confidentiality rules
A trust estate may form an IBC
Anonymous registration of trust
Office of protectors is allowed
No taxes
If you need to form your RAK company or trust, contact us through our website, by email, Bitwine or Skype
The IT landscape of Panamá has undergone several important
changes in the past five years. Although many significant advances have been
made, improvements are still needed in many areas.
Strengths
1. Well Developed Telecommunications Infrastructure:
as a result of privatization in 1997, and de-regulation in 2003 the
market has changed dramatically. Although there is still a single local service
provider, Cable and Wireless, individuals can now choose from different service
offerings for their national long distance, and international calling needs.
Cable and Wireless has made significant investments in the telecommunications
infrastructure since it entered the market in 1997.
2. Increased
Government Involvement in ICT Sectors: this year, the government
started the introduction of a set of initiatives that intend to improve the ICT
landscape of Panamá. The Panamanian government has developed a comprehensive
plan, e-panama.gob.pa, that incorporates information and telecommunications
technology, focuses on social and economic development, and seeks to increase
participation of the population in issues of national importance. The e-panama
plan includes e-government, e-education, e-economy, e-health, and e-democracy.
This will provide lasting benefits regarding education, infrastructure, and
investment incentives.
3. Low Cost of Labor: the cost of
labor is much less than in developed countries such as the United States. For
example, the monthly salary for a worker in a call center is between $500-600
per month.
4. Incentives for ICT Investments in the Country:
the government will soon be formally establishing the Panamá-Pacific
Special Economic Area that will provide tax incentives and benefits for ITC
companies. Also, special laws have been passed, such as the one regarding call
centers, in order to provide incentives for international companies to set up
their call centers in Panamá.
5. FDI: FDI figures have
increased dramatically in 2003, after experiencing a significant decrease for
2002.
Weaknesses
1. Lack of Trained Workforce: the
workforce in Panamá is not trained in ITC specific areas. Also, the lack of
individuals that have an advanced command of the English language is a weakness,
since the government is trying to attract international companies in the ICT
sector, such as call centers and help desks. The government is currently
training about 3,000 individuals in advanced English in a time period of three
months. This may continue in the future, especially as more companies establish
themselves in the Panamá-Pacific Special Economic Area for ICT sector
companies.
2. Low Computer and Internet Penetration Rates:
Computing and Internet Diffusion are very low, especially when comparing them to
countries like Costa Rica. Low computer and internet penetration rates may grow
significantly after the e-panama.gob.pa initiatives are
implemented.
3. No Domestic Production of Software and
Hardware: currently, there is no significant domestic production of
software or hardware in Panamá.
4. Legal Environment: there
is a general perception of widespread corruption in the country. The legal
system is not lacking in laws that protect the business community (such as
copyrights and intellectual property), however the judicial system is slow and
bureaucratic. Changes in this area are of vital importance if the country wants
to be more appealing to international companies seeking to enter a Latin
American market.
Source: Cecilia Stoute, INITEB site http://www1.american.edu/academic.depts/ksb/mogit/country.html
Attorney Alvaro Aguilar, partner at Lombardi Aguilar Group, said that Panama incorporators have in place know-your-customer laws which do not exist in the U.S. and European countries which deem the Isthmus as an “uncooperative” jurisdiction. Aguilar was recently interviewed on Omega Stereo www.omegastereo.com about a recent study by Australian university professor Jason Sharman comparing Panama's due diligence system for incorporations with those of Organization of Economic Co-operation and Development (OECD) member states.
“Since the 1930s Panama has stood out as an international financial and logistical center, in the face of larger centers such as London and New York”, said Aguilar, who specializes in formation of corporations, trusts and foundations for business purposes. “The contradiction that more than half of the OECD members are allowed to have bearer shares, some with immobilization, has no other motive than to slowly erode the competitiveness of a financial center which has always been independent.”
Aguilar reminded listeners the circumstances under which the Panama corporate system originated in the 1930s. When totalitarian countries threatened Europe, Ships owned by Panama companies were leased by the then neutral US to assist the United Kingdom in its war effort. Other companies owned Panama-flag ships used to take Jewish refugees to the territory of Palestine. "Bearer shares of said companies were an element in choosing Panama for said operations" said Aguilar. He mentioned several cases in Eastern Europe and Latin America of businessmen in currently using Panama companies with bearer shares to shelter from authoritarian regimes the personal assets they have earned.
According to the Sharman study, "available evidence strongly suggests that Panama is significantly more compliant with international beneficial ownership standards than many OECD countries, especially the United States". 20 out of 34 OECD countries allow bearer shares, and have not immobilised them, including important financial centers like the UK. Panama is not a member of the OECD. Aguilar also pointed out that the England and the U.S. state of Wyoming have business entities authorized by law to issue bearer scrip and bearer share warrants without being surrendered for immobilization.
A plan for immobilization of bearer shares of Panama companies has been opposed by the University of Panama School of Law and several local practitioners.
Mr. Aguilar is a graduate of Universidad Santa Maria la Antigua (LLB) and Washington College of Law at The American University (LLM) International Trade & Banking program. Previously he has been selected by the Central American business weekly CAPITAL FINANCIERO as one of the "40 under 40" acknowledging to his achievements as a young legal professional. He specializes in corporation law and trust & estates matters.
About Lombardi Aguilar Group
Lombardi Aguilar Group is a partnership of consultants created as an alternative for clients worldwide who seek fast, innovative and effective solutions to their legal problems. The firm currently provides services to individual and corporate clients in Panama as well in the Americas, Europe and Asia. Its partners maintain a commitment with professional ethics and social responsibility by participating in the board of directors of groups such as the Panama Bar Association, the Alliance Francaise, the German and the American Chambers of Commerce (AMCHAM) of Panama, and the Association of Chinese-Panamanian Professionals (APROCHIPA). The firm centers its law practice in private client services and asset protection (Private Interest Foundations, Trusts), business structures (Offshore Corporations), tax planning, real estate and e-commerce. It also advices in areas of Law such as Corporate, Commercial, Intellectual Property, Maritime, Tax, Environmental and Immigration Law as well as related litigation. For more information, contact +507 6638-8707 +507 396-5080, e-mail info (at) laglex.com, or see: Lombardi Aguilar Group http://www.laglawyers.com/
Panama has 93 licensed banks, of which 14 are representative offices not allowed to receive deposits. This leaves 2 government-owned banks and 48 full-service general license banks open to the general public. An additional 29 banks have international license banks which can receive deposits only from non-Panamanians.
General License
1. ALLBANK CORP. *
2. BAC International Bank Inc
3. Balboa Bank & Trust Corp
4. Banco Aliado, S.A
5. Banco Azteca (Panamá), S.A
6. Banco Bilbao Vizcaya Argentaria (Panamá), S.A. (BBVA)
7. Banco Bolivariano (Panamá), S.A.
8. Banco Citibank (Panamá,) S.A
9. Banco Davivienda (Panamá), S.A
10. Banco Delta, S.A (BMF)
11. Banco de Bogotá (Panamá), S.A
12. BANISI, S.A.
13. Banco G & T Continental (Panamá), S.A. (B.M.F)
14. Banco General, S.A.
15. Banco Internacional de Costa Rica, S.A (BICSA)
16. Banco Lafise Panamá, S.A.
17. Banco Latinoamericano de Comercio Exterior, S.A. *
18. Banco La Hipotecaria, S.A
19. Bancolombia, S.A.
20. Banco Panamá, S.A
21. Banco Panameño de la Vivienda, S.A. (BANVIVIENDA)
22. Banco Pichincha Panamá, S.A.
23. Banco Prival, S. A. (en español) - Prival Bank (en
inglés)
A fire started at the BICSA tower in Panama City's banking center, arguably Latin America's tallest building. The project originally started called as Ice Tower, then was restarted as Star Bay Tower and is expected to house a Hilton Panama hotel.
According to La Prensa, the fire started Oct. 10 at 5:30 pm and firemen were still trying to control it 12 hours later, resulting in the evacuation of adjacent buildings in the banking center.
The building is developed by F&F Properties , which was found liable by the Engineers Society SPIA for the collapse of a faulty wall which in May 2009 brought down one lane of traffic, broke a 16-inch tube of the IDAAN water utility and caused $400,000 in damages to the Union Fenosa utility .
251 U.S. Congressmen decided that the taxpayer resources were better spent trying to reduce unemployment to 6% than collecting information about accounts held by foreigners in U.S. banks. TIEA compliance by the US is among the projects which would cost more than US$50 million to carry out.
Despite strong bipartisan requests in both chambers of Congress, the Treasury Department has refused to withdraw the rule, or at a minimum, conduct an economic impact analysis on how the regulation would affect the banks and the economy.
According to Florida’s Office of Financial Regulation, the regulation could lead to tens of billions of dollars being withdrawn from Florida banks and moved to overseas accounts.
Congressman BillPosey’s amendment, was introduced with Congressman Gregory Meeks (D-NY) to stop the IRS from implementing new misguided regulations expected to lead to billions of dollars of capital flight from U.S. banks to foreign institutions.
However, agreements for the implementation of FATCA continue full speed ahead, burdening banks worldwide with more compliance. Countries like Panama which have signed tax information exchange agreements are still expected to amend their legislation and information systems to eliminate bearer shares and collect information on deposits by U.S. account holders.
"My hope is that at the end of the day people will say this is not a good time to do this," Posey said.
CF&P President: Congressional Vote on IRS Regulation is First Step in Reasserting Proper Legislative Role in Policymaking
Washington, D.C., Tuesday, July 31, 2012) Last week the House of Representatives voted with bipartisan support (251-165) to approve an amendment to the Red Tape Reduction Act (H.R. 4078) that would include the recently adopted IRS regulation requiring reporting on nonresident alien interest deposit information among the regulations to be delayed until unemployed drops below 6%. Andrew Quinlan, President of theCenter for Freedom and Prosperity, offered the following statement:
“The House has taken a first and necessary step in taking back the power to pass regulation from an IRS agency that has gone rogue. With passage of this rule, Treasury Secretary Geithner and the Obama Administration usurped the authority of Congress to determine how best to attract much needed foreign investment to the US. Thanks to the leadership of Congressman Posey, the House has began taking that authority back. I call on the Senate to follow suit, and then for this temporary delay to be made permanent.”
Congress has long opposed agency efforts to implement the reporting regulation, which undermines more than 90 years of Congressional intent on foreign investment. Each time the issue of foreign deposits has come up, Congress has specifically decided not to tax it nor asked for it to be reported. The IRS facilitating taxation by other governments will have the same economic impact as if the US taxed it directly, thus undermining the clear intent of Congressional policy.
The IRS has also flaunted legal requirements for regulatory enactment, such as requirements that economically significant rules be accompanied by a cost-benefit analysis. They have never conducted a proper analysis because there are no direct benefits to which they can point. A study by the Mercatus Centeron an earlier, more limited and thus less damaging, version of the rule estimated the US would lose $88 billion in foreign investment, well above the $100 million impact necessary to trigger the cost-benefit requirement.
CF&P has fought various versions of this regulation for over 10 years, successfully delaying the rule on several occasions. The vote on Rep. Posey’s amendment represents another victory for those who believe not only that ensuring American requires keeping it an attractive destination for capital, but in the rule of law and proper checks and balances.
For more information on the destructive IRS regulation:
Treasury Signs FATCA Agreement with 5 European Countries
... “This morning’s announcement that an ‘Intergovernmental Agreement to Improve Tax Compliance and to Implement FATCA’ has been reached with U.K., France, Germany, Italy and Spain was anticipated and welcomed,” commented Denise M. Hintzke, global tax leader of foreign account tax compliance at Deloitte Tax LLP. “At a high level, both the reciprocal and non-reciprocal versions should help financial institutions reach important FATCA objectives, while potentially reducing costs to comply. We expect further negotiations on the specifics of what will be required in the country attachments. Much remains to be done to meet the requirements in the tight timeline, and many details are to come, but this announcement represents a significant step forward in the global exchange of information to combat tax evasion.”
However, that global exchange of information received a setback on Thursday in Congress, the same day as the integovernmental agreement was announced. The House voted 251-165 to support an amendment to the Red Tape Reduction Act sponsored by Rep. Bill Posey, R-Fla., and Gregory Meeks, D-N.Y., to stop the IRS from implementing new regulations requiring U.S. banks to disclose the identities of foreign depositors to the IRS, which would then pass along the information to their home countries. The regulations were set to take effect in January, but under the amendment that passed on Thursday, they would be postponed until the U.S. unemployment rate declines to 6 percent.
The prospects for passage of the amendment in the Senate are uncertain. Sen. Marco Rubio, R-Fla., has been building support for introducing similar legislation in the Senate, but he told the Orlando Sentinel he prefers to go a different route for pressuring the IRS to withdraw the regulations. Lawmakers argue that the regulations discourage foreigners from depositing their money in U.S. banks. The Treasury Department counters that it is merely requiring the same information to be reported on foreign depositors that it requires from U.S. citizens, and delaying implementation of the regulations impedes the IRS's efforts to crack down on offshore tax havens.
FATCA was enacted in 2010 by Congress as part of the Hiring Incentives to Restore Employment Act. FATCA requires foreign financial institutions to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
The Treasury Department and the IRS said they would continue to work with other governments and with businesses to implement FATCA and to achieve maximum consistency and standardization in the technical implementation of the agreed information exchange, including by providing more detailed guidance as necessary.
The Panamanian banking center has 93 banks with $81.407 billion in assets, 13% more than 2010. $21.987 billion are held by Panamanian-owned non-government banks.
New Panamanian-owned banks include Unibank, Banco Panama, Capital Bank (BVP), Prival Bank and Balboa Bank & Trust, which took over the operations of the Stanford Bank Panama branch.
Panamanian-owned banks continue their expansion overseas. Banco General (f. 1955, BVP: BGEN) has a 5 full service branches in Costa Rica and the representation offices of acquired Banco Continental in Guatemala, Mexico and Colombia.
Multibank (f. 1990, BVP: MULT) acquired Costa Rican car lender MultiResuelve and Colombian money store Macrofinanciera.
Mortgage lender La Hipotecaria (f. 1997, BVP: HIPH) started operations in Colombia and El Salvador.
Private banker Prival Bank owns a stock brokerage firm in El Salvador Invertecnic.
Credicorp Bank (BVP: CRED) has a representation office in Colombia.
For full text see www.martesfinanciero.com 24.04.12
MyPanamaLawyer is a blog for discussion of issues of interest to foreigners relocating to Panama.
No legal advice is provided. The opinions posted are solely those of the authors of the respective articles. Images and text are reproduced on a fair use, non-commercial basis pursuant to international conventions.
