My Panama Lawyer

London, the citadel of the offshore world

2011-12-11T23:51:00.000-08:00

Why bother with black lists and immobilization of bearer bonds in BVI and other countries? You can get bearer shares from United Kingdom Limited Liability entities and be welcome by tax authorities and banks in most countries which have black lists copied verbatim from the France-based OECD.

The final irony is that Panama and the United Kingdom will start negotiations for a double-taxation agreement http://www.prensa.com/uhora/economia/panama-negocia-mas-acuerdos-para-dejar-de-ser-considerado-un-paraiso-fiscal/40666

LONDON, THE CITADEL OF THE OFFSHORE WORLD

The modern offshore company, which began its all-conquering journey in the islands which once formed the British Empire in the 1970s and 80s, can justifiably be described as an English invention. At that time, it was also possible to incorporate so-called "non-resident" companies in England, which, if managed from outside of the United Kingdom, were not subject to taxation in England, although even then London could never have been described as a classic offshore zone.

This possibility ended in the early 90s, but, England, and in particular, London remained an extremely popular place for the incorporation of companies, for both English and foreign businesses alike. Numerous businessmen chose to incorporate in London; Companies House now boasts a register with over three million companies, ranging from small business to multinational companies. So what makes people want to incorporate in London?

The tax advantages related to English companies

The above shows quite clearly that English companies cannot be categorized as traditional tax-free companies, and in fact they are quite the opposite. How, therefore, can English companies be used advantageously in international business transactions? The following section shows just two of the possible uses.

Trading company for nominee purposes.

Blacklists have meant problems for a large number of offshore companies, particularly those providing services. One very efficient way of overcoming this problem is by using an English company, which concludes a special contract with the offshore company, which may be incorporated in a traditional offshore zone such as The Bahamas, BVI or Belize. According to the terms of the contract, the English company concludes contracts with foreign partners on behalf of the offshore company, prepares invoices for the total amount of the services provided, and receives full payment into its bank account, although the offshore company actually provides the services. Periodically (as defined in the contract between the English and offshore companies), the English company is entitled to an agency fee of between 5 & 10 % of the value of the contracts concluded. The English company must declare this income and pay tax accordingly, whereas, the remaining 90-95 %, is transferred to the account of the offshore company, as set down in the contract. An offshore company is subject to tax in England on income with an English source. Although the offshore company operates through an English resident company, the actual source of the income is not England, but the foreign partner. At the same time, it is an important condition that the offshore company should be managed from outside England, and that the directors, shareholders and bank account signatories of the offshore and English companies should not be the same people.

Dual resident companies

An English company must be classified as resident in England if it was incorporated in England and/or the majority of the directors are resident in England and manage the company from England. However, according to the agreements made by England for the avoidance of double taxation (DDTs) it is possible for a company to be resident in two or more places, if, for example, it is managed from a different company. Such companies are known as "dual resident companies". As long as the company is managed from a country which is protected by a DDT, then the company can apply to the English tax authorities to be taxed in that country rather than in England. And if that country has more favorable rates of taxation, then it is worth operating the company as a dual resident company. Currently, the most attractive jurisdiction with which England has signed a DDT is Cyprus. According to Cypriot law, if a company, or a branch of that company, operates outside Cyprus, then that branch is subject to the 4.25% profit tax of the worldwide income. The English company becomes resident in Cyprus by establishing an offshore branch there. The majority of the directors of the English company must be Cypriots and all the decisions relating to the running of the company must also be managed from outside England, preferably from Cyprus. Similarly, the company must not receive income from English sources. This is all the more problematic as activities carried out in England are subject to VAT. Dual resident companies must file annual returns in both Cyprus and England, but can also take advantage of the DDTs signed by Cyprus.

This information is not intended and should not be construed as concrete tax advice. Should you wish to make use of one or any of the structures mentioned, we recommend that you consult your personal tax adviser, as well as experts on the legal systems of all the countries involved.

Source: LAVECO brochure. Extract posted with thanks to N. Remé (Humboldt-Universität zu Berlin, EJP).
Photo: UK Inland Revenue offices

Former strongman returns to Panama "largely irrelevant"

2011-12-11T19:15:00.000-08:00

PANAMA CITY, Panama - More than two decades after the U.S. forced him from power, Manuel Noriega returned to Panama on Sunday as a prisoner and, to many of those he once ruled with impunity, an irrelevant man.

Some Panamanians feel hatred for the former strongman and rejected American ally; a few others nostalgia. But as he returned to his native country for the first time since his ouster, it seemed like few people had any strong feelings at all.

Full text in http://www.newsday.com/news/nation/noriega-returns-to-panama-a-largely-irrelevant-man-1.3381838

Noriega was convicted in absentia in three homicide cases involving 11 murders, including the 1985 beheading of Hugo Spadafora, a physician who threatened to reveal Noriega's drug ties, and the 1989 execution-style slaying of nine officers who staged a failed coup.

Sentenced to 20 years in each case, he will serve the terms concurrently. Official photographs of the facility prepared for him at the El Renacer prison showed a spartan, beige-painted cell with a bathroom, table and small bed.

Noriega will also face charges over the 1970 murder of Heliodoro Portugal, an opponent of Panama's military leaders.

Panamanian media showed images confirming the imprisonment of the former strongman, while pointing out at the cameras.

Las Uvas: The town that only exists in paper

2011-12-09T15:26:00.000-08:00

WHO LIVES IN THE 54 HECTARES TITLED BY ANATI?

The desolate lands in coveted Juan Hombrón
R. M. KOSTER
periodistas @laestrella.com.pa

Before the coastal peninsula became a public issue, 'La Estrella' visited it twice in three years and found no traces of human life in the place

12.07.2011 Title resolutions issued by the Ministry of Finance for the twelve corporations listed 45 people. The vast majority alleged land holders, the others, witnesses, 'who have declared under oath that they are residents and residents of the community in Juan Hombrón Las Uvas, district of the chiru, a district of Antón, Cocle province '.

In almost all cases the residence period exceeds 20 years. In no case is less than five.

I tried to visit the community of Las Uvas three years ago, on November 13, 2008 to be exact. A few miles west of Rio Hato is a stone path that runs from the Panamerican highway to the sea, where the five or six houses of Juan Hombrón are.

If the tide is low, the peninsula can be reached on foot or by car.

I drove along its length. A group of investors were attempting to obtain title land which rights of possession they had bought from some fishermen, and I researched for La Estrella.

I found a strip of sand, half covered on the lagoon side of the scattered scrub. Aside from insects, crabs and birds, it was empty of animal life, and the only trace of human life were a couple of decaying ranches, rotting from rust.

I could not visit the community because there was none! although 45 people have said, 'under oath', who resided in it when I visited the peninsula.

In January this year, the 28th, two journalists from La Estrella went there. Cortez Zelideth reporter and photographer Luis Garcia.

They found the same as me, except that now there are three ranches. Apart from the two and their guides, no one was there.

What would have happened to the 45 residents? Could it be that, on both occasions, they were all on vacation.

Residents often have residences. What has happened to them? Neither I nor Luis Zelideth not see nothing worthy of appeal. Perhaps the residents, such as snails, had brought, or penalty of perjury may not weigh much in the Las Uvas, as elsewhere.

Zelideth and Luis spoke with some of the persons mentioned in the land title resolutions.

They live near Anton, several miles from Las Uvas. They said that sometimes, when fishing, they spend the night in Las Uvas.

It may be true, although it would have been necessary to bring drinking water, for on the peninsula there is not a drop. You may tell the truth, but spending a night in a place from time to time is something different from what the alleged inhabitants of Las Uvas declared "under penalty of perjury ', and gives no possessory rights over anything.

Some of the people mentioned in the resolutions have the same names and identification numbers that they sold their alleged possession rights to the group of investors that I researched in 2008. I do not blame them at all. There are wealthy bums who make their land scams, it is fair that poor people take something, and the most they got was a few thousand dollars.

A funny thing happened when the group tried three years ago to obtain title in Las Uvas. A real estate broker named Jimenez sent an e-mail to Mr. Steve Guthrie, Denver, United States, secretary-treasurer of Grand Panama International, offering lots at bargain prices. 'He wanted to sell land that we had bought from Mr. Lucom and for which we had paid half a million dollars!' said Guthrie.

"That lagoon is where we thought of putting the marina, and without those miles Santa Monica beach is unfit for the project."

RANCHES. In Juan Hombrón (Las Uvas), the houses look more like ruins. Photo: Luis Garcia | La Estrella

http://laestrella.com.pa/online/impreso/2011/12/07/las_desoladas_y_codiciadas_tierras_de_juan_hombron.asp

54 hectares of Juan Hombron (in Spanish)
New suit alleges RICO conspiracy
Las Uvas: Fever in the coast
Latin America's First "Branded City" Planned for Panama Gold Coast

View Larger Map

August 6, 2011, decision by Justice Oyden Ortega
September 30, 2011, clarification by Justice Oyden Ortega
Grand Panama International et al vs. Hacienda Santa Monica, S.A,, ... Interplus Inversiones Internacionales S.A.; Interplus Panama, S.A., complaint by company Lucom promised to sell his property to.

French minister causes suspension of contract

2011-11-28T19:59:00.000-08:00

Panama's government has suspended a contract with French credit insurance giant Compagnie Francaise DAssurance Pour le Comerce Extérieur (Coface) to finance part of a project to build the first line of its subway, after French Minister Valérie Pécresse persisted in including Panama in France's list of tax havens, despite the signing of a double-taxation agreement by both countries.

The actions by the Minister prove that the entire "tax transparency" campaign by European countries is a scam that will only end until Caribbean financial centers are reduced to banana and sugar cane exporters as in the 18th century. No matter how many tax agreements are signed, or laws changed, there will always be some new "black list" that international financial centers (except those in Europe) are deemed to be included in.

The Comunique of the Panama Ministry of Foreign Relations states in its draft translation:

Posted on Sunday, November 27, 2011 in Information
COMUNIQUE

Panama has made notable and recognized efforts to update the rules governing our financial sector, including the signing of 12 Double Taxation Treaties that have allowed us out of the OECD's gray list.

Statements French Minister of Budget and Public Accounts, Valérie Pécresse, just days after the interview between the President of the Republic, Ricardo Martinelli and French President Nicolas Sarkozy contradict what was agreed between the two Presidents.

We call on France to ratify promptly the Double Taxation Agreement signed with Panama last June 30 which was ratified by Panama in October.

We are confident that when France ratifies this treaty, as promised by President Sarkozy to President Martinelli French animosity against Panama on this issue will disappear.

Panama's sovereign decision to refuse services COFACE the French company, is a measure backed by Panamanian Law 58 of 2002 adopting retaliatory measures in case of foreign discriminatory restrictions against the Republic of Panama.

We had already warned would take action against repeated verbal attacks on our financial system in international forums by countries whose companies, in parallel, seek to participate in the huge public investments in our country forward.
http://www.mire.gob.pa/noticias/2011/11/27/comunicado

Earlier this month, Panama's Foreign Minister Roberto Henriquez had called the G20 hypocrites after including Panama again in their list of tax havens, despite having signed the 12 Double Taxation Agreements required by the OECD. http://www.telemetro.com/noticias/2011/11/07/84789/panama-califica-actitud-hipocrita-posicion-g20

According to La Estrella, Minister Pecresse made a Sunday call to the Panamanian Treasury Minister De Lima sayins that an emissary would fly into Panama to clarify matters. http://www.laestrella.com.pa/online/noticias/2011/11/28/francia_se_retracta_luego_de_acciones_de_panama_contra_coface.asp

COFACE Risque pays et études économiques > Panama
http://www.coface.fr/CofacePortal/FR_fr_FR/pages/home/os/risks_home/risques_pays/fiche/Panama?extraUid=571911

COFACE dans le monde
http://www.coface.com/CofacePortal/ShowBinary/BEA%20Repository/AR/es_ES/pages/home/wwa/gt/memoria/_docs/coface_es.pdf

Terms of the Panama-US Trade Promotion Agreement

2011-10-25T12:29:00.000-07:00

The ratification by the US Congress of the Panama-US Trade Promotion Agreement ends a long 8-year negotiation process with several ups and downs. La Prensa provides a summary of the terms and history of the Agreement.

Enforcement of Intellectual Property Protection Between Mexico and the United States: A Precursor of Criminal Enforcement for Western Hemispheric Integration?
Panama: Central American Countries Aim for Free Trade Agreement
Reformas, TLC y realidades
Lawyers will submit legislation to protect themselves from FTA
Position of Bar Association regarding FTA

Societe Generale leaving Panama (again)

2011-10-19T11:26:00.000-07:00

This the case of the bankers who cried "wolf".

Societe Generale with great fanfare announced that they were leaving Panama in 2010 because of its "tax haven" status. What the media had missed was that they already announced in 2002 they were leaving Panama because of the country being considered a tax haven. Somehow Panama was a market good enough to return after 2002, or each closure is an excuse to cover up bad management of the branch.

Of course, Panama News also concluded in 2002 that the "entire offshore financial services sector's days are numbered". After that "prediction" the Panama banking sector has excess liquidity up to the point that some banks reject non-resident clients.

Now the French authorities have declared that even after Panama signing a double-taxation treaty with France, the Isthmus is still a "tax haven".

Societe Generale leaving Panama

Citing special charges and delays imposed by other countrie on financial transactions that involve Panama, France's second-largest bank, Societe Generale, is closing its operations in Panama City's banking center. Brazil, Venezuela, Mexico, Argentina and Peru all discriminate against transactions involving Panama, mainly because those countries have long experience with their public officials laundering the proceeds of corrupt practices here. Societe Generale joins UBS and ABN Amro Bank in the line of European financial institutions leaving Panama, and its departure is taken by some analysts as another sign that the entire offshore financial services sector's days are numbered.
http://www.thepanamanews.com/pn/v_08/issue_14/business_briefs.html July 28-August 10, 2002

Societe Generale moves Mexico ops. to France - Mexico, Panama
France's second largest private bank in terms of assets Societe Generale has decided to manage its Mexican customers' accounts from France rather than from its Panamanian branch, Societe Generale Panama CEO Celestin Cuq told Panamanian daily La Prensa.
Mexico charges a 15% tax on operations conducted through Panamanian banks, yet Mexico and France have a mutual tax waiver agreement, so it makes sense for Societe Generale to serve its Mexican clients from France, despite Panama's offshore status.
Fellow European banks UBS and ABN Amro also pulled out of Panama in 2001 for the same reason. However, Cuq said Societe Generale would maintain a representative office in Panama because it is of strategic value for securing business in Central America and the Caribbean.
http://www.bnamericas.com/news/banking/Societe_Generale_moves_Mexico_ops,_to_France Published: Friday, July 26, 2002 14:15

SOCIETE GENERALE : La SocGen examine des "anomalies" sur un compte de Singapour
Tous les articles PARIS, 1er avril (Reuters) - La Société Générale enquête sur des "anomalies" trouvées dans le compte d'un client supervisé par l'un de ses banquiers privés à Singapour, a déclaré jeudi un porte-parole de la banque.
Ce dernier n'a pas donné de précision sur la nature de ces anomalies mais il a dit qu'elles avaient été détectées en février et que la banque avait immédiatement informé les clients qui pourraient être concernés.
Il a ajouté que la banque faisait son possible pour résoudre la question rapidement dans l'intérêt de sa clientèle.
La banque a engagé en mars Benedikt Maissen, un ex-responsable de la Barclays, pour ses opérations en Asie.
Benedikt Maissen, 50 ans, rendra compte à Pierre Baer, responsable des opérations de banque privée de la Société Générale à Singapour et en Asie méridionale.
(Sudip Kar-Gupta, avec la contributioon de Wilfrid Exbrayat, édité par Jean-Michel Bélot)
http://www.investir.fr/infos-conseils-boursiers/actus-des-marches/infos-marches/la-socgen-examine-des-anomalies-sur-un-compte-de-singapour-239387.php 01/04/10 à 16:04 - REUTERS 0 commentaire

Former Societe Generale Trader Goes on Trial
Trial began Tuesday for a former trader accused of brining losses of 5 billion euros (5.95 billion U.S. dollars) to the French bank Societe Generale SA (SG).
About 50 witnesses were expected to be called in the three-week trial of Jerome Kerviel, who is charged with forgery, breach of trust and unauthorized computer use. Kerviel faces five years in prison as well as a fine of 375,000 euros (448,000 dollars), if convicted.
In addition, his former employer Societe Generale would demand a sum of 4.9 billion euros (5.83 billion dollars) in compensation for damages, SG lawyer Jean Veil told the Sunday paper Le Journal du Dimanche.
http://english.cri.cn/6966/2010/06/08/1461s575490.htm 2010-06-08 19:52:40 Xinhua Web Editor: Zhang Jin

Panama trade agreement finally approved

2011-10-14T15:49:00.000-07:00

South Korea, Colombia, Panama Trade Accords Clear U.S. Congress

Analysts split over whether trade pacts boost US economy

US farmers celebrate free trade agreements, say increased demand will create jobs

Ford, others tout passage of South Korea, Colombia, Panama trade deals

Trade deals: three big winners from America's new free-trade agreements

U.S. Senate Roll Call on Passage of H.R. 3079 A bill to implement the United States-Panama Trade Promotion Agreement. October 12, 2011, 07:46 PM

http://www.uspanamatrade.org/ http://www.aaccla.org http://www.panamcham.com

CBS Evening News - Congress passes free trade agreements http://www.youtube.com/watch?v=H1v2sPN2BGU

Statement From President Ricardo Martinelli About Congressional Passage of Panama-U.S. Free Trade Agreement

PanamaInvest conferences feature investment opportunities

2011-10-14T15:25:00.000-07:00

Panama Invest is a cycle of conferences delivered by the government of the Republic of Panama to potential investors located in key global markets with the aim of disseminating information about business opportunities and attracting foreign investment to Panama. This year Panama Invest will start in Sao Paulo to be followed by Toronto, (Madrid, Tokyo, Munich, Rotterdam and will end with the second edition in the British capital of London.

Thus, under this favorable environment, Panama Invest seeks to showcase a variety of business opportunities for companies interested in setting up their operations in Panama, where the national government has identified important sectors for investment such as maritime services, logistics and transport, mining, tourism, financial services, among others. Moreover, Panama Invest will introduce the strategic function of Panama to serve as platform for the operations of enterprises in the larger Latin American region.

http://proinvex.mici.gob.pa/
http://www.panamainvest2011.com/
http://www.panamainvest.org
http://www.mici.gob.pa
http://www.impulsopanama.gob.pa/
http://www.camarabrasilpanama.com.br
http://es-es.facebook.com/pages/Agencia-de-Inversiones-de-Panam%C3%A1-PROINVEX/165595976815571
http://www.facebook.com/profile.php?id=100001526002538&ref=ts

A New Path for Panama

2011-10-12T19:01:00.000-07:00

Journal of Perspectives on Business and Economics has articles on the issues facing Panama.

Volume 25, 2007

Introduction
by Ambassador William A. Eaton

Move Over, Florida: Retirement in Panama
by Allison Warshaw

Panama's Great Challenge: Reforming the Educational System
by Sabrina Harris

Poverty Reduction in Panama's Indigenous Communities
by Jennifer Schappert

Ecotourism in Panama
by Megan Brown

The Concrete Jungle: Panama's Construction Explosion
by Eugene Kiselev

Rethinking External Financing in Panama: Potential Catalyst for Economic Growth and Poverty Reduction
by Jonathan Kamenear

Panama in Transition: The Road to Democratic Legitimacy
by Rebecca Guzman

The Twenty-first Century Panama Canal: Post-Panamax or Post-Panama?
by Antonio Rothenbach

Free Trade and Panamanian Support for Agricultural Producers
by Giancarlo Rivero-Pellegrini

Colón: A Story of Its Own
by Rajan Khatiwada

Women in Panama: Navigating Upstream Against the Current
by Nayla Raad

Panama Trade Agreements sent to Congress for vote

2011-10-09T18:46:00.000-07:00

October 3, 2011
U.S Trade Representative Ron Kirk Calls for Swift Passage of Trade Agreements
The United States – Panama Trade Promotion Agreement: Implementing Legislation and Supporting Documentation
Statements Regarding the President’s Submission to Congress of the South Korea, Colombia, and Panama Trade Agreements
The Pending Trade Agreements: More American Jobs, Faster Economic Recovery Through Exports

Michaud, Pingree oppose new free trade agreements
Congress Ready to Vote on Three Free-Trade Accords Within Week

New suit alleges RICO conspiracy

2011-10-03T16:43:00.000-07:00

|10/03/2011 @ 11:21AM |826 views

Trust Fund Stolen From Poor Children In Panama, Lawsuit Claims

Family fights over wills, trusts and estates are far too common, not only in our country, but elsewhere. Sometimes, those fights reach a whole new level. This has certainly been the case with a tragic story from Panama which harmed those most in need … millions of impoverished and starving children.

A Florida attorney, Richard Lehman, takes center stage in the dispute. He recently sued political officials throughout Panama — including three Supreme Court judges — charging corruption, bribery, theft, and much more. The fight involves the estate of Lehman’s former friend and client, Wilson Lucom.

When he died in June of 2006 at the age of 88, Lucom was an expatriate American living in Panama. One year before he died, Lucom signed a will generously leaving the majority of his $50 million fortune to a trust fund to benefit the poor and needy children of Panama. That fortune includes ocean-front real estate which has appreciated in value, so that Lucom’s estate is now valued at more than $150 million.

Lucom’s widow, Hilda Piza Lucom, was well-connected in Panamanian political circles. In fact, she used to be married to the son of a President of Panama. Lucom’s will left her a monthly allowance of $20,000 and the right to live in and use the marital home throughout her life. Her children also received specific bequests (Lucom had no children of his own). But Hilda wanted more … much more.

Hilda sued to challenge the will and claimed that Lucom’s attorney, Richard Lehman, had coerced Lucom into creating it so he could manage the charitable trust, which the will named as the primary beneficiary to Lucom’s vast estate. Through the lawsuit, a court in Panama removed Lehman as the estate’s executor, but ultimately found the will valid. Hilda then appealed to another court, which again found the will valid.

Finally, she appealed again to the Supreme Court of Panama. That Court, acting through three judges, issued a strange decision which upheld the will but at the same time ruled that Lucom really wanted to benefit his “beloved wife.” The judges overturned the distribution of the bulk of Lucom’s fortune to his charitable trust fund and instead named Hilda as the “universal heir.”

Several different people, including the notary who signed the will and even a prosecutor, filed challenges to the Supreme Court’s decision. In the face of those legal challenges, the entire Supreme Court of Panama decided to review the case a second time. For the last year, the case has been in a holding pattern, until the Supreme Court issues another ruling.

In the meantime, the Florida attorney, Lehman, is tired of waiting for the money to be released to help the poverty-stricken children in Panama. It is estimated that 20% of Panamanian children suffer from malnutrition and more than one-half of children under the age of five live in poverty. Lehman says he wants the children to finally benefit from Lucom’s wishes.

So Lehman recently filed a lawsuit in federal court in Florida, accusing Hilda, some of her adult children from her first marriage, and various Panamanian judges, prosecutors, attorneys, and others, of being part of a massive, criminal RICO conspiracy. RICO is a set of United States federal laws used to combat organized crime and corruption.

In his lawsuit under the RICO laws, Lehman accuses the three Supreme Court judges of accepting bribes in the amount of $1.5 million, each. He says Hilda and others acting on her behalf caused numerous false criminal charges to be asserted against him — including one for murder — in an effort to prevent him from acting as estate executor and to inhibit him from fighting against them in court. He even suggests that the conspiracy led to a murder attempt on the life of one of Lehman’s allies.

The RICO lawsuit seeks $732 million in damages on behalf of Lehman and the charitable trust that Lucom created to implement his directive to benefit poor children in Panama. You can read the complaint that recently started this lawsuit here.

Lehman said, in an interview with Thompson Reuters, that “every word” in his RICO complaint is true and he wants the whole world to know about the corruption in Panama and the effect it’s had on the starving children there.

A Florida attorney representing some of those accused of the criminal conspiracy says that this is merely the last in a line of “frivolous lawsuits” and notes that a court in Florida already ruled that Lehman misused estate assets to the tune of $2 million. But, Lehman includes a claim in his new lawsuit that the recent Florida ruling was procured through false evidence as part of the conspiracy.

His opponents think that this is nonsense. One of the attorneys fighting against Lehman, Matias Dorta, emailed us a copy of the Florida’s judge’s ruling, which referred to Lehman as, “a covetous opportunist using the ancillary estate assets … seeking personal advantage and control of assets in the $25-50 million domiciliary estate.” Dorta says that Lehman’s new claims were already raised and dismissed in a previous lawsuit.

Clearly, there are two sides to the story, and both sides accuse the other of foul play. You can read the Florida Judge’s decision against Lehman here.

Regardless of whether Lehman’s more-shocking allegations are true, the fact remains that Lucom signed a will wanting to benefit those in Panama who most needed help. While some question whether Lucom really had these charitable intentions, the case does present a lesson. This lengthy and expensive probate court fight could have been largely avoided.

How? There was no reason for Lucom to rely on a will and force his assets to pass through the court system, which had been accused by many of being corrupt. While Lucom created a trust — in Panama — to implement his wishes (at least, according to Lehman), that trust was never funded with his estate assets before he died.

Lucom could have transferred his assets into his trust during his lifetime. Or, better yet, he could have created a trust somewhere other than Panama (like Florida for example), transferred his assets into it, and avoided the Panama court system entirely.

Creating and a funding a revocable living trust — early, before there is a question of mental competency or undue influence — is the best way to prevent a family fight over your estate. By making this change late in life, and failing to use a trust to avoid probate, Lucom made it much harder for his wishes to be followed.

It’s a sad lesson that everyone can learn from.

By Danielle and Andy Mayoras, co-authors of Trial & Heirs: Famous Fortune Fights!, husband-and-wife legacy expert attorneys, and hosts of the national television special, Trial & Heirs: Protect Your Family Fortune! For the latest celebrity and high-profile cases, with tips to protect yourself, your loved ones, and your clients, click here to subscribe to The Trial & Heirs Update.

See full text in http://www.forbes.com/sites/trialandheirs/2011/10/03/150-million-trust-fund-stolen-from-poor-children-in-panama-lawsuit-claims/

La Estrella de Panamá - The Panama Star
The Lucom legacy
Las Uvas: Fever in the coast

Supreme Court of Justice-Panama
August 6, 2011, decision by Justice Oyden Ortega
September 30, 2011, clarification by Justice Oyden Ortega
Grand Panama International et al vs. Hacienda Santa Monica, S.A., complaint by company Lucom promised to sell his property

La Voz Nueva
Legal case clouding Panama/U.S. commerce

Youtube video
100 acres of beachfront are misappropiated
.

Lombardi Aguilar Attorney To Speak at New York State Bar Association Panel Discussion

2011-09-16T16:05:00.000-07:00

Lombardi Aguilar Attorney To Speak at New York State Bar Association Panel Discussion

Attorney Alvaro Aguilar will be a speaker at a panel discussion on trust & estate laws to be held before members of the New York State Bar Association (NYSBA) International Section

Lombardi Aguilar Group (http://www.laglex.com/) partner Alvaro Aguilar-Alfu will be a speaker at a panel discussion during the New York State Bar Association (NYSBA) International Section seasonal meeting. The theme of this seasonal meeting is "Latin America as an Engine for Economic Recovery and Growth." Mr. Aguilar is also Co-Chair of the meeting local steering committee comprised of lawyers from the Central and South American cities of Panama City, Bogota, Buenos Aires, Santiago, São Paolo, and San Jose. The meeting will be held from September 21-24, 2011, in Panama City, Panama, and a pre-meeting of the NYSBA Costa Rica Chapter will be held on on September 19.

Mr. Aguilar will be a panelist of the session on "Trusts and Estates – Regulation of Offshore Accounts and Trusts in the US and Latin America" on Thursday, September 23, from 2:40 p.m. to 3:55 p.m. Other experts in the panel will be Glenn G. Fox and Michael W. Galligan (both of New York City, U.S.), Mary Fernandez (Santo Domingo, Dominican Republic), Cristina Sánchez-Urtiz (Mexico City, México) and Diego Fissore (Buenos Aires, Argentina). Lombardi is a graduate of Universidad Santa Maria la Antigua (LLB) and Washington College of Law / The American University (LLM).

To register for the 2011 Seasonal Meeting of the International Section, visit the New York State Bar Association Website at: http://www.nysba.org/PanamaMeeting2011

About the New York State Bar Association (NYSBA) International Section

NYSBA http://www.nysba.org/ilp is the organisation of lawyers in the State of New York, and with more than 76,000 members, it is the largest voluntary bar organisation in the United States.
The NYSBA International Section is one of the most active sections of the Association, with over 2,000 members throughout the United States and in many foreign countries and with chapter chairs in numerous cities worldwide. Members are primarily professionals practising law at major international law firms or corporations with a global reach.
NYSBA International provides its members the opportunity to keep up to date and influence issues and events that affect their clients and their practice. Each year NYSBA International hosts its Seasonal Meeting in a different city outside of the United States to provide American and foreign colleagues the opportunity to meet, network and expand their international practices.

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 +507 340-6447, e-mail info (at) laglex.com, or see: Lombardi Aguilar Group http://www.laglawyers.com/

Keywords: panama, latin america, new york, tax, offshore, Trust, trustee, estate, Real Estate, Property, corporation, foundation

http://prlog.org/11646540

# # #

Subscribe to press releases from Lombardi Aguilar Group:
RSS Feeds:

See also the updates in Linkedin , Facebook and Twitter

US ExIm Bank Chaiman visits Panama

2011-08-08T16:59:00.001-07:00

Ex-Im Bank Chairman Fred P. Hochberg Conducts Business Development Mission in Panama, August 7 - 8

PANAMA CITY, Aug. 8, 2011 /PRNewswire-USNewswire/ -- Fred P. Hochberg, chairman and president of the Export-Import Bank of the United States (Ex-Im Bank), conducted a business-development mission in Panama on August 7 – 8, 2011, to promote Ex-Im Bank financing available to support sales of U.S. goods and services to private and public-sector buyers.

(Logo: http://photos.prnewswire.com/prnh/20110414/MM83673LOGO)

Panama is the fastest-growing country in Central America, with a GDP growth rate of 7.5 percent in 2010 and strong growth anticipated through 2015. The government of Panama has set ambitious goals for the country's infrastructure investment that could total more than $10 billion in the next five years, including a $1.5 billion metro line.

As of June 30, 2011, Ex-Im Bank has over $1 billion in exposure in Panama. Ex-Im's support for Boeing aircraft sales to Copa Airlines, Panama's flag carrier, constitutes the majority of its financings in the country in recent years, and the Bank is seeking to expand its support beyond the aviation sector.

Hochberg met with Panamanian business leaders to discuss Ex-Im Bank financing available to encourage more companies in Panama to purchase U.S. goods and services. He is focused on expanding use of the Bank's products for infrastructure development, renewable-energy production, medical and transportation equipment, construction and other sectors.

"From financing U.S. construction equipment for the Pan-American Highway in the 1940s to supporting U.S. aircraft sales to Copa Airlines today, Ex-Im Bank has helped to expand business and tourism in Panama," said Chairman Hochberg. "The Bank is open for business in all of our programs in Panama. We provide an array of innovative financing tools and resources for Panamanian buyers to purchase U.S. goods and services."

Commenting on the pending U.S.-Panama Free Trade Agreement, Hochberg noted, "Ex-Im Bank supports Panamanian companies as productive partners with U.S. exporters for the mutual benefit of our countries. The free trade agreement with Panama will allow the Bank to harness additional opportunities in infrastructure and other key sectors and improve U.S. access to Panama's $20 billion services market."

Hochberg's schedule included meetings with Copa Airlines officials, breakfast at the American Chamber of Commerce of Panama on Monday, August 8, followed by a meeting with U.S. Ambassador to Panama Phyllis M. Powers and a visit to the Panama Canal.

Panamanian buyers interested in learning more about Ex-Im Bank's financing may contact Senior Commercial Officer Daniel Crocker at the U.S. Embassy in Panama City through email at Daniel.Crocker@trade.gov or by calling (507) 207-7388.

About Ex-Im Bank:

Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.

In FY 2011 through August 4, 2011, Ex-Im Bank has approved more than $24.5 billion in total authorizations – an all-time Ex-Im record. This total included 2,548 U.S. small-business transactions. The Bank's FY 2011 authorizations to date represent a 70 percent increase over its FY 2008 total of $14.4 billion.

Ex-Im Bank's authorizations through August 4 will support $31.5 billion in U.S. export sales and approximately 213,000 American jobs in communities across the country. For more information, visit the Bank's Web site at www.exim.gov.

SOURCE Export-Import Bank of the United States

Disney makes it to Panama! - sort of...

2011-07-24T22:18:00.000-07:00

Panama has become a regular port of call of the Disney cruise ships. Disney Magic holds the record for the highest regular toll paid for passage through the Panama Canal, at $331200
http://en.wikipedia.org/wiki/Disney_Magic

This is the closest we have yet to see a Disney operation being set up in Panama, despite the recurrent story that keeps coming up on the Internet about a Disney resort.

The story first came up in 2006 during the real estate boom. http://primapanama.blogs.com/_panama_residential_devel/2006/01/is_disney_comin.html The then Minister of Commerce Jose Paredes theorized it could be related to the purchase of Hacienda Santa Monica by a group of foreign investors. The Minister mistakenly said that the investors had made a deposit and no further payments, when in fact the investors have been precluded from paying the rest of the price when the seller Wilson Lucom died and the relatives stalled the probate case. And the buyers were not related to the Disney companies.

In 2009 an April 1 "news item" supposedly issued by a non-existent reporter AP called Rodrigo Campos mentioned a Disney park to be located on the Pan-American Highway near the entrance to the resort town of Coronado, the 350 acre park. http://www.panama-guide.com/article.php/20090401154924637

Even a BusinessWeek website http://bx.businessweek.com/foreign-direct-investment/walt-disney-coming-to-panama/6467937499164575937-2516e83dc8dc74e509c929cbbd984b74/ and the El Siglo newspaper were suckered into what was an April Fools joke http://www.panama-guide.com/article.php/20090401154924637

What has become an urban legend or a way of raising depressed real estate prices occasionally makes it back, as the original item remains stored in website cache memories, with some Internet users still believing it...

http://answers.yahoo.com/question/index?qid=20090422161316AASM8lD
http://www.mouseinfo.com/forums/mousellaneous/89052-new-disney-park-according-papers.html
http://www.panama1.com/foros/showthread.php/725-Walt-Disney-Coming-to-Panama-NOT!
http://forums.wdwmagic.com/showthread.php?t=616557

Disney resorts - unrelated to theme parks - do exist in the Caribbean and throughout the U.S.
http://www.kingdom-travel.com/Walt_Disney_World_Resorts/Disney_Caribbean_Beach_Resort.shtml
http://www.kingdom-travel.com/Walt_Disney_World_Resorts/Disney_Saratoga_Springs_Resort_Spa.shtml

This means that those wanting to visit Mickey will need a U.S. visa or travel to theme parks in Europe or Asia.

Panama exits the OECD Grey List

2011-07-22T16:29:00.000-07:00

OECD Promotes Panama to List of Financially Transparent Countries

Leading Latin American Economy Reaches Major Transparency Standards Milestone

WASHINGTON, July 22, 2011 /PRNewswire-USNewswire/ -- Following the signing of a double taxation agreement with France on July 6, the Republic of Panama was placed by the Organization for Economic Cooperation and Development (OECD) on its list of countries who have substantially implemented international standards for exchange of information, commonly known as the "White List."

"Panama has moved aggressively to align its tax systems with international standards established by the OECD," said Alberto Vallarino, Minister of Economy and Finance for the Republic of Panama. "We are pleased to have reached this historic milestone, which further assures international investors of the stability of the Panamanian economy."

Panama has signed DTAs with France and 10 other countries, including Italy, the Netherlands, Spain, Qatar, Luxembourg, Korea, Singapore, Mexico, Barbados, and Portugal. Panama signed a Tax Information Exchange Agreement with the United States in November of last year. These agreements enable the transparent exchange of tax information and prevent the facilitation of tax evasion. A country must sign at least 12 of these agreements in order to be included on the OECD's list, which is a compilation of countries willing to cooperate against tax fraud.

Panama leads Latin America economically. In 2010, the country led the region in foreign direct investment, as a percent of GDP, with investments exceeding $2.3 billion. In the first quarter of 2011 alone, Panama's economy grew 9.7 percent from the previous year. It was ranked the 2nd most competitive economy in Latin America by the World Economic Forum's Global Competitiveness Report 2010-2011, and the International Monetary Fund projects that Panama will become the fastest-growing economy in Latin America and the Caribbean by 2015.

Panama has requested that the OECD's Global Forum further review its laws and domestic policies to ensure the tax treaties it has signed remain operational.

"The Martinelli Administration's pro-growth economic policies and alignment with international standards continue to create prosperity for our country and opportunities for our citizens," Vallarino said.

Distributed by HDMK, LLC on behalf of the Republic of Panama. Additional information is on file at the Department of Justice, Washington DC.

www.meetpanama.com.pa

SOURCE Republic of Panama

Tax: Panama meets target for international exchange of tax information

06/07/2011 - Panama today moved to the OECD’s list of jurisdictions considered to have substantially implemented the standard for exchange of information when it signed a tax information exchange agreement with France. This brings Panama’s total agreements to the critical 12 that meet the international standard.

Accordingly, Panama now moves into the substantially implemented category, becoming the 39th jurisdiction to do so since the progress report was first issued in April 2009.

Secretary General Angel Gurria said, “Panama has worked hard to achieve this milestone and has made remarkable strides toward complying with the international standards in a very short time. This is very welcome and shows the Global Forum is achieving its aims.” However, he cautioned that the Global Forum must still evaluate whether Panama’s domestic laws will allow for effective availability, access to and exchange of information. He said, “The government has introduced domestic changes so that the agreements can be effective. The Global Forum will follow up to make sure they work as intended. It is important that Panama continues to work to fully implement the standards.”

Following the Global Forum Phase 1 Peer Review of Panama (assessing the legal and regulatory framework), Panama has significantly amended its legislation to address some of the deficiencies identified by the Global Forum which resulted in Panama not moving forward to a Phase 2 review (assessment of the information exchange in practice). At the request of Panama, the Global Forum will soon undertake a further review of whether Panama’s domestic laws, including recent changes, will allow for effective exchange of information in practice.

More information about the Global Forum:

Background briefing on the Global Forum
Website of the Global Forum: www.oecd.org/tax/transparency
Exchange of Information Portal: www.eoi-tax.org – Follow the latest news on exchange of information networks and peer reviews for all jurisdictions.

For further information, journalists should contact Jeffrey Owens, Director of the OECD’s Centre for Tax Policy and Administration, (tel. +33 1 45 24 91 08, e-mail: jeffrey.owens@oecd.org).

Watch videos available on tax "evasion"

A progress report on the jurisdictions surveyed by the OECD Global Forum in implementing the internationally agreed tax standard (PDF regularly updated)

A progress report on the jurisdictions surveyed by the OECD Global Forum in implementing the internationally agreed tax standard on exchange of information for tax purposes.

The internationally agreed standard, developed by OECD and non-OECD countries in the context of the OECD’s Global Forum on Taxation and endorsed by G20 Finance Ministers in 2004 and by the UN Committee of Experts on International Co-operation in Tax Matters in October 2008, requires exchange of information on request in all tax matters for the administration and enforcement of domestic tax law without regard to a domestic tax interest requirement or bank secrecy for tax purposes. It also provides for extensive safeguards to protect the confidentiality of the information exchanged.

Panama Peer Review Report

A succesful day at Immigration...

2011-07-03T10:05:00.000-07:00

Applicants at Panama Immigration may spend up to 25 hours standing in line for pictures or submissions by the time certain types of residence visas are granted. Somehow there is always a new unwritten regulation used to justify ordering a application papers to be amended. Using an attorney or a legal assistant may cut down the number of hours spent. Having a clever assistant like this one is ... just priceless!

Panama Attorneys advise investors forming joint venture for energy projects in West Africa

2011-06-28T21:02:00.000-07:00

Panama Attorneys advise investors forming joint venture for energy projects in West Africa
Attorneys Lombardi Aguilar Group advised a group of West African investors entering a joint venture to develop hydrokinetic water projects

Panama City, Panama – Attorneys Lombardi Aguilar Group (www.laglex.com) served as Panama counsel for MRS Holdings Ltd. (www.mrsgroupng.com) in their joint venture to develop hydrokinetic water projects.

Nigeria-based MRS Holdings Ltd., entered through their Panamanian subsidiary into a joint venture with renewable energy company Hydro Alternative Energy, Inc. (HAE) to develop hydrokinetic energy projects in West Africa. The arrangement follows the previously announced binding letter of intent between HAE and MRS to secure and develop such hydrokinetic water power projects in the West Africa region.

HAE and MRS formed Natural Energy Solutions (NES), a Panamanian corporation, which plans to enter into power purchase agreements for developing hydrokinetic water power projects in West Africa. NES will be headed by select senior management from both the HAE and MRS organizations.

NES plans to advance the terms and conditions of a MoU from mid-October between a prior MRS subsidiary, since assigned to NES, and the Cameroon’s Ministry of Energy and Water Resources. The MoU entails feasibility studies to be undertaken for the development and operation of facilities for the production of tidal electric power, and for the Cameroon government to facilitate access to and grant certain exclusivity rights with respect to the project sites that will be selected as part of the feasibility studies and construction of electricity generation facilities to be undertaken.

MRS is headed by its President and major stockholder, Sayyu Dantata, an established businessman and entrepreneur who, in 2008, steered MRS' acquisition of the Chevron operation in West Africa. Mr. Dantata stated, "We are likewise very pleased to formalize our partnership with HAE, and are fully committed to making our relationship a success and providing West African countries with low cost, clean, renewable hydrokinetic energy for their electricity needs."

Lead attorney for MRS' Panama counsel was partner Dr. Jorge Lombardi, a graduate of Universidad Santa Maria la Antigua (LLB) and University of Paris (3eme cycle, DED). The team included associate Carlos Abrego and counsel Rodolfo Espino. Abrego and Espino are graduates of University of Panama (LLB) and have taken courses at National University of Singapore (LL.M.) and Tamkang University, Taiwan (Political Systems), respectively.

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 +507 340-6444, e-mail info (at) laglex.com, or see: Lombardi Aguilar Group http://www.laglawyers.com/

Keywords: Panama, West Africa, Energy, Hydrokinetic http://prlog.org/11541669
# # #

--- end --- Visit Press Room

Subscribe to press releases from Lombardi Aguilar Group:
RSS Feeds:

Ras al Khaimah opens its RAK Offshore center

2011-06-23T21:26:00.000-07:00

Located in the United Arab Emirates, one of the fastest growing economies of the world, the emirate of Ras Al Khaimah (RAK) has quickly developed into a booming international center. Renowned for its lack of taxes and its minimal bureaucratic red tape, Ras Al Khaimah has attracted thousands of businesses, large and small, to relocate and take advantage of its economic opportunities. Now, RAK Offshore has made it possible for nonresident corporations, entrepreneurs and individuals worldwide to enjoy all the incentives that were previously available only to resident entities.

Headquartered in the up-and-coming Ras Al Khaimah City, the RAK Investment Authority, a government entity, allows a wide variety of financial activity and provides the perfect conditions to consider an offshore corporation through its regularity body, RAK Offshore.
At RAK Offshore, our raison d’être is to help your business succeed. From the very outset, RAK Offshore was conceived to allow its clients an easy, cost-effective means to unleash their entrepreneurial spirit, by starting and operating an offshore business.
RAK Offshore offers businesses and individuals alike an expansive range of services, structures and investment policies that are dedicated to nonresidents. RAK Offshore also benefits from one of the most comprehensive lists of non-double taxation treaties in the world, including treaties with China, India, Italy, France and Germany.

Nonresident Business and Individuals
International Business Companies RAK Offshore presents an ideal location for international business operations and asset protection schemes. If you are looking for an free zone in the Middle East where you can register your LLC or GmBH with little cost or hassle, RAK Offshore is your answer.
Maritime Activities RAK Offshore offers open registry of yachts, private boats, and, in the near future, vessels.

Outsourcing
With its proximity to the major economies of the Middle East and its strategic location between the economic hemispheres of the East and the West, RAK lies in the perfect geographic location for a new business. In addition to its ready access to a flexible, multicultural, multilingual and highly skilled workforce, RAK Offshore becomes the ideal choice for outsourcing businesses looking for accounting, auditing and other back-office operations.
Offshore Non-Financial Businesses You can register International Business Companies bearing the status of Ltd., GmBH, Ltda or SA at RAK Offshore.
Trusts There are a variety of trusts you may consider, including the following: General Trusts, Discretionary Trusts, Vesting Trusts, Educational Trusts, Employee Trusts, Spendthrift Trusts, Asset Protection Trusts & Grantor Trusts.
Charitable Trusts & Foundation As the owner of an operating business, you can continue to maintain control over your company by setting up a Corporate Special Trust.

Offshore Banking
RAK Offshore takes special care to give small and medium enterprises the ability to move their business offshore through the creation and application of dedicated instruments. A few resulting benefits realized for your business are the following:
Asset Protection & Planning
Confidentiality of execution
Tax planning
International Visibility
No Exchange Control
Access to a Superb Communication and Banking Infrastructure
Choice of outsourcing
Creative and genuine portfolio of dedicated services
Property ownership of nonresidents in UAE free zones
Compliant with the best international standards for anti-money laundering.

If you need to form your RAK company or trust, contact us through our website, by email, Bitwine or Skype

Using your RAK company

2011-06-22T10:45:00.000-07:00

Registrar of Companies
The Registrar of Companies functions as the production unit of RAK offshore and is responsible for establishing business relationships, incorporating offshore companies through licensed registered agents, and ensuring all rules and regulations are strictly adhered to. The Registrar of Companies will handle all matters related to the aforementioned, including:

Process applications for incorporation of new companies and deliver certificate of incorporation with registration number
Perform due diligence on the individuals (directors, members, etc.) who are part of the incorporated company.
Verify the names of companies at incorporation
Collect various fees and fines
Deliver certificates, duplicates, or other documents as per the law
Maintain the physical registry
Update the Register of Companies as needed

Information AT-A-GLANCE

International Business Companies
Shareholders Minimum Residencyrequirements	1 shareholder No requirements
Share Capital Minimum authorized Minimum issued Bearershares Redeemable shares	Nomínimum requirement 1 share No Yes
Beneficialownership disclosure	Not required to disclose to the UAE government, but must be disclosed to a registered agent
Directors MinimumNumber Residency requirements Corporate Directors	1 director No requirements Yes
Local presence requirements Directors Company officers Meetings Annual general meeting Audit requirements	Not required Not required Not required Not required Not required (unless requested by the RAK Financial Services Authority for suspicion of criminal activity)
Annual accounts Possibility of migration	Yes, but not public accounts Yes
Share transfer duty/tax	None
Special mention on the name	Ltd., Sociéte Anonyme, GmbH, Ltda…

If you need to start your RAK company contact us through our website, by email, Bitwine or Skype

Panama hires new K Street lobbyists

2011-06-01T09:13:00.000-07:00

Panama Nabs Additional K Street Help
By Kate Ackley
Roll Call Staff
May 24, 2011, 3:09 p.m

The government of Panama, hoping to win Congressional approval for a free-trade agreement with the United States, has hired a new team of lobbyists from Mehlman Vogel Castagnetti to press its case on Capitol Hill.

Full text in http://www.rollcall.com/news/-205910-1.html
See also http://www.prensa.com/hoy/panorama/2616840.asp
http://www.mvc-dc.com

Efforts continue to ensure ratification of US-Panama FTA

2011-05-29T13:40:00.000-07:00

The Panamanian Vice-President Varela met Feb. 11, 2011, USTR Ron Kirk trying to advance ratification of the Panama Free Trade Agreement.

Devon

http://mensual.prensa.com/mensual/contenido/2011/02/10/hoy/negocios/2497906.asp
http://mensual.prensa.com/mensual/contenido/2011/02/10/hoy/negocios/2497737.asp

Economía y Negocios

2011 será decisivo en las relaciones comerciales de Panamá

EU promete intensificar ratificación del TPC

Quedan temas por resolver para Estados Unidos, como la protección de derechos laborales.

VISIÓN. Kevin Brady, republicano de Texas, dijo que Panamá ha hecho más de lo que le ha pedido EU para lograr la ratificación del acuerdo comercial. BLOOMBERG/Joe Marquette1508875

Betty Brannan Jaén
Corresponsal
WASHINGTON, D.C.

El presidente Barack Obama ha dado instrucciones de que se "intensifique" el esfuerzo por resolver temas pendientes con Panamá en torno al tratado de promoción comercial (TPC), con miras a proceder este año con la ratificación del acuerdo, afirmó ayer Ron Kirk, representante comercial del Gobierno estadounidense.

"Les puedo decir hoy que el Presidente me ha dirigido a que inmediatamente intensifique el diálogo con Colombia y Panamá, con el objetivo de resolver los temas pendientes tan pronto como sea posible este año, e inmediatamente después llevar esos acuerdos al Congreso para su consideración", declaró Kirk durante una audiencia ante el Comité de Medios y Árbitros de la Cámara de Representantes.

Sin embargo, Kirk precisó que "quedan temas serios" por resolver con ambos países. "Algunos de esos temas se dirigen a valores e intereses básicos para Estados Unidos, como la protección de derechos laborales. Cualquier horario [para ratificar los acuerdos] dependerá de la resolución exitosa de estos temas".

Kirk dejó claro que se espera más de Panamá, pero no precisó detalles. Dijo: "Colombia y Panamá han comenzado a tomar algunos pasos importantes, pero queda más por hacer... Es crítico que ellos vengan a la mesa preparados a tomar acciones significativas".

El presidente del comité, Dave Camp (republicano de Michigan), criticó que no se han definido exactamente cuáles son los temas pendientes con Panamá y Colombia. En la misma línea, Kevin Brady (republicano de Texas) sostuvo que Colombia y Panamá "no solamente han hecho todo lo que hemos pedido, sino que se han ido mucho más lejos". Él y otros republicanos en el comité presionaron a Kirk sobre la demora en proceder con la ratificación de estos dos acuerdos.

Del lado demócrata, el congresista Sander Levin (de Michigan) señaló que los aspectos sin resolverse con Panamá incluyen temas laborales y fiscales. Sobre ambos aspectos, dijo, Panamá tiene medidas ante la Asamblea que no se han aprobado todavía. Otro congresista demócrata, Jim McDermott (de Washington), mencionó su preocupación sobre "el estatus de Panamá como paraíso fiscal".

Mientras tanto, Adam Isaacson, analista con el Washington Office on Latin America, opinó el martes en una entrevista con CNN que lo que tiene estancado al TPC en Washington es una preocupación por temas laborales y corrupción en Panamá.

Ayer, en declaraciones a este diario, Isaacson aclaró que su referencia a "corrupción" tuvo que ver más bien con el secreto bancario en Panamá. Sobre ambos temas –derechos laborales y secreto bancario—Isaacson observó que hay medidas pendientes ante la Asamblea Nacional.

Kirk genera optimismo

Las declaraciones del representante comercial Ron Kirk generaron un ambiente de optimismo en Panamá.

"Es positivo, un indicio muy favorable de parte de la administración Obama, por primera vez se señala de manera pública presentar el TPC con Panamá", dijo Antonio Fletcher, presidente del Consejo Nacional de la Empresa Privada.

Estif Aparicio, ex jefe negociador comercial, también calificó de positivo que se haya dado fecha o rango temporal para la ratificación del acuerdo. "En un país como EU no se dan declaraciones de este tipo sin que se tenga la certeza de que se van a hacer las gestiones", agregó. El ministro de Comercio Roberto Henríquez reiteró que se ha cumplido con los cambios laborales y fiscales solicitados por EU.

MARY TRINY ZEA

Ordenan que se ratifique el TPC

Kirk se reunirá mañana con el canciller panameño Juan Carlos Varela, quien ha expresado su expectativa de que el tratado avance en el primer trimestre de 2011.

MANCUERNA. Ron Kirk ha acompañado al presidente Obama en varias decisiones importantes de carácter comercial. AFP/Jewel Samad1508647

AP. WASHINGTON, EU

El presidente Barack Obama ordenó resolver este año los temas pendientes para ratificar los tratados de libre comercio con Colombia y Panamá, dijo ayer el representante comercial del Gobierno estadounidense.

Al comparecer ante la comisión de medios y arbitrios de la cámara baja, Ron Kirk afirmó que Estados Unidos gestionará la ratificación de los tratados de libre comercio con Colombia y Panamá solamente tras aclarar objeciones relacionadas con "principios e intereses estadounidenses fundamentales".

Es la primera vez que el Gobierno estadounidense menciona una fecha tentativa para ratificar los tratados de libre comercio con Colombia y Panamá, pendientes desde hace un lustro.

La fecha coincide con la solicitud planteada el mes pasado por el vicepresidente colombiano Angelino Garzón a su colega estadounidense Joe Biden de buscar una aprobación del tratado de libre comercio en 2011.

La mayoría republicana en el Congreso y la Cámara de Comercio estadounidense ha ejercido una intensa presión para que ambos tratados sean considerados junto con el de Corea del Sur, que Washington espera enviar al congreso en las próximas semanas para sancionarlo antes de mediados de año.

El presidente del comité de Medios y Arbitrios, el republicano Dave Camp, dijo a Kirk que "esperábamos declaraciones como estas hace dos años, estamos perdiendo participación de mercado en esos países. Necesitamos medidas concretas" para aprobar estos tratados.

Kirk respondió que su despacho enviará la semana próxima a Colombia una misión para evaluar la situación de derechos laborales, y ante una pregunta dijo no saber si él integrará la misión.

Las preocupaciones sobre la tasa anual de sindicalistas colombianos asesinados ha sido uno de los principales obstáculos al tratado en el Congreso.

En cuanto a Panamá, Kirk dijo que quedan por resolver dos objeciones a sus leyes laborales, pero no especificó.

El Gobierno panameño espera la aprobación legislativa este mes de proyectos de ley para garantizar el derecho a sindicalizarse en empresas que no tengan dos años de existencia y en empresas activas en zonas económicas especiales.

No quedó claro tras la intervención de Kirk si Washington ha desistido de una tercera observación laboral a Panamá: reducir de 40 a 20 la cantidad requerida de trabajadores para fundar un sindicato.

Kirk se reunirá hoy con el vicepresidente panameño Juan Carlos Varela, quien ha expresado su expectativa de que el tratado avance en el primer trimestre de 2011 porque asegura haber cumplido todas las condiciones planteadas por la Casa Blanca en junio de 2009, incluyendo un tratado de intercambio de información fiscal suscrito en noviembre.

"Cualquier avance dependerá de la aclaración exitosa de estos temas. Colombia y Panamá han comenzado a adoptar medidas importantes, pero necesitan hacer más. Para lograr avances, es vital que (Colombia y Panamá) vengan a la mesa de negociaciones preparados para adoptar medidas significativas adicionales", dijo Kirk sobre ambos tratados.

IRS announces August 31, 2011 Offshore Voluntary Disclosure Initiative (OVDI) deadline

2011-05-24T19:17:00.001-07:00

U.S. citizens or foreigners who are green-card holders and have never reported that offshore account, corporation or private foundation they control or never bothered to dissolve, now have a second chance to come into the system.

Depending on each individual case, forms which should been filed are :
- Form 1040, Schedule B, Part III – Foreign Accounts and Trusts
- TD F 90-22.1 (Report of Foreign Bank and Financial Account Information)
- Form 5471 (Information Return of U.S. Person with Respect to Certain Foreign Corporations)
- Form 5472 (Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business).

On February 8, 2011, the Internal Revenue Service announced a special voluntary disclosure initiative designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. The new voluntary disclosure initiative will be available through Aug. 31, 2011.
The 2011 initiative has a higher penalty rate than the IRS's previous voluntary disclosure program, which ended on Oct. 15, 2009, but offers clear benefits to encourage taxpayers to disclose foreign accounts now rather than risk IRS detec-tion and possible criminal prosecution. In addition, the 2011 initiative includes new guidelines to provide fairness to people with smaller amounts of undisclosed assets or unusual situations.
A full news release about the 2011 OVDI may be found here: http://www.irs.gov/newsroom/article/0,,id=235695,00.html?portlet=7. More information, including how to participate, may be found here: http://www.irs.gov/newsroom/article/0,,id=234900,00.html.

How to Make a Voluntary Disclosure Under the 2011 OVDI

The 2011 Offshore Voluntary Disclosure Initiative (OVDI) is offered to those taxpayers with offshore accounts or assets. Please follow the new process outlined below.

Pre-Clearance:

Taxpayers or representatives may fax to the IRS Criminal Investigation Lead Development Center at (215) 861-3050 the taxpayers' name, date of birth, social security number and address (if the taxpayer is represented by a tax professional, an executed power of attorney must be included).

IRS Criminal Investigation will then notify taxpayers or their representatives via fax whether or not they have been cleared to make a voluntary disclosure using the Offshore Voluntary Disclosures Letter. Taxpayers or representatives with questions regarding the pre-clearance can call (215) 861-3759 or contact their nearest Criminal Investigation Office.

Note: Pre-clearance does not guarantee a taxpayer acceptance into the 2011 OVDI. Taxpayers must truthfully, timely, and completely comply with all provisions of the 2011 Offshore Voluntary Disclosures Initiative.

Offshore Voluntary Disclosure Letter

If the taxpayer chooses to submit a pre-clearance request, after the taxpayer receives a pre-clearance notification, the taxpayer will have 30 days from receipt of the fax notification to complete the Offshore Voluntary Disclosures Letter. If the taxpayer chooses to bypass the pre-clearance process, the taxpayer must mail the Offshore Voluntary Disclosures Letter to the following address:

Internal Revenue Service

Criminal Investigation

ATTN: Offshore Voluntary Disclosure Coordinator

Philadelphia Lead Development Center

600 Arch Street, Room 6406

Philadelphia, PA 19106

The IRS will review the offshore Voluntary Disclosures Letters and notify the taxpayer or representative by mail whether the voluntary disclosure has been preliminarily accepted or declined.

Complete Voluntary Disclosure Package

Once the voluntary disclosure has been preliminarily accepted, the taxpayer should send the full voluntary disclosure package no later than August 31, 2011 to:

Internal Revenue Service

3651 S. I H 35 Stop 4301 AUSC

Austin, TX 78741

ATTN: 2011 Offshore Voluntary Disclosure Initiative

Taxpayers wishing to make a voluntary disclosure that is not covered under this offshore initiative should contact their local IRS Criminal Investigation (CI) office to speak with a criminal investigator.

Tax administration questions such as Where is My Refund or Where Do I File can be addressed by other IRS offices.

Mr. Martinelli goes to Washington

2011-05-02T21:06:00.000-07:00

Panamanian President Ricardo A. Martinelli visited Washington and met U.S. President Barck H. Obama.

Last year, Martinelli was interviewed by Fox Business News.

Nikki Beach owners want Panama resort to stop using its name

2011-03-15T07:23:00.000-07:00

After 6 years of aggressive marketing, the partners of the Nikki Beach panama development have parted ways. According to court papers filed by Penrod International, a Panama company Casa de Campo Farallon misused its Nikki Beach trademark to open a resort in December 2010 and finally to misrepresent the nature of their termination in a publication of February 10, 2011.

Eventually, the hotel changed its name to Royalton Playa Blanca, after a management agreement was signed with Blue Diamond, a hotel operations company owned by Sunwing Group of Canada. Panama company RG Hotels announced this change in a March 14 press release which still contained the NB word.

While U.S. courts may be appropriate venue for a legal action under U.S. law, a winning plaintiff could find problems when enforcing a judgment against assets abroad of the foreign defendant unless proper notice of the initial action from the beginning.

The 2007 article gives an idea of the high expections under which the original project was sold to individuals. Thse buyers may be the ones left to lose more as they purchased relying on an internationally known brand of the "sexiest hotel in the world".

Nikki Beach Severs Ties with Playa Blanca Resort

Playa Blanca, Panama (January 2011)

Nikki Beach has severed ties with a condominium hotel project under development in Playa Blanca on Panama’s Pacific Coast.

In 2007, Nikki Beach signed an agreement to operate Nikki Beach Hotel and Resort Playa Blanca, the first condo hotel in this coastal location. The opening was originally scheduled for 2008, but the project was delayed more than two years. The agreement has been terminated and all ties severed. Approximately 80 of the 140 condo hotel units are now finished, and the owner is continuing to market the property as a Nikki Beach Hotel & Resort.

Nikki Beach has no affiliation with the project and does not condone use of the Nikki Beach Trademark which is unauthorized and the subject of litigation.

For further information, please direct all inquiries to Nikki Beach Corporate, 786.515.1130.

Text from Company page http://www.nikkibeachhotels.com/ipage/notice.php cached in Google

Nikki Beach sues owner of Panama hotel

By Jerry Limone

Full text in http://www.travelweekly.com/Travel-News/Hotel-News/Nikki-Beach-sues-owner-of-Panama-hotel/#

Nikki Beach drops hotel project in Playa Blanca Panama, Due to non-compliance with brand Standards

February 11, 2011 05:44 PM Eastern Daylight Time

MIAMI BEACH, Fla.--(BUSINESS WIRE)-- Nikki Beach recently severed its ties with a condominium hotel project under development in Playa Blanca on Panama’s Pacific Coast, and has taken legal action against the local developer, Panama’s RG Inmobiliaria, according to Peter Higney, director of operations, Nikki Beach Hotels & Resorts, Miami Beach.

“As a global five-star brand, we set certain standards for the design, construction and operation of our properties”

“As a global five-star brand, we set certain standards for the design, construction and operation of our properties,” Higney said. "We have a responsibility to maintain our brand standards and under no circumstances would we allow the developer to use our brand and misrepresent us to our loyal Nikki Beach customers."

On Thursday Nikki Beach filed an injunction in U.S. District Court in Miami against the Panama developer to prevent the unauthorized use of its name, brand and any other intellectual property belonging to the company.

A growing global hotel and resort operator, Nikki Beach has a strong Hotel Division with offices in Europe and the Middle East. The company has 10 projects in the pipeline in locations such as Croatia, Greece, Cyprus, Qatar, Cape Verde, Thailand, Spain and new projects in the making, added Higney.

Referring to the situation in Panama, Higney said that as of August 2010, the local developer had breached an operating agreement by failing to conform to the brand’s standards, architectural guidelines and operating requirements, as well as by misrepresentation of the brand. Additionally, the developer missed the opening date in 2008.

Consequently, Nikki Beach declared the developer in default, but gave the developer another chance to correct the numerous problems found by an on-site inspection in September 2010. When the developer did not respond, Nikki Beach sent a notice of termination on November 22, 2010.

Without Nikki Beach serving as the “exclusive operator” of the resort as called for in the contract, the developer had no right to open the resort in December, 2010 using the Nikki Beach brands, added Higney, since Nikki Beach had no way to insure quality control over such unauthorized use of its five-star brand. “As a global lifestyle brand firmly growing in the luxury boutique hotel niche, protecting our brand’s standards and intellectual property are paramount issues,” Higney said.

Full text in http://www.businesswire.com/news/home/20110211006243/en/Nikki-Beach-Drops-Hotel-Project-Playa-Blanca

Nikki Beach owners want Panama resort to stop using its name

The Daily Business Review

...Panama resort to prohibit use of its name. Miami Beach-based Penrod International, which operates Nikki Beach, claims in a lawsuit filed Thursday in...

02/14/2011 John Pacenti Subscription Required

Penrod International LLC dba Nikki Beach v. Casa de Campo Farallon, S.A. dba Nikki Beach Playa Blanca Resort et al

Date # Docket Text 2/11/2011 6 MOTION for Preliminary Injunction and Supporting Memorandum of Law by Penrod International LLC. (Attachments: # 1 Exhibit A, # 2 Text of Proposed Order)(Peretz, Steven) (Entered: 02/11/2011) 2/11/2011 5 Clerks Notice to Filer re: Electronic Case - Documents Improperly Arranged. The Filer did not properly attach the Civil Cover Sheet & Summons. Future filings must comply with the CM/ECF Civil Case Opening Guide. It is not necessary to re-file this document. (vjk) (Entered: 02/11/2011) 2/11/2011 4 FORM AO 120 SENT TO DIRECTOR OF U.S. PATENT AND TRADEMARK (vjk) (Entered: 02/11/2011) 2/11/2011 3 Summons Issued as to Casa de Campo Farallon, S.A., Rugiere Galvez. (vjk) (Entered: 02/11/2011) 2/10/2011 2 Judge Assignment RE: Electronic Complaint to Judge Jose E. Martinez (vjk) (Entered: 02/11/2011) 2/10/2011 1 COMPLAINT for Compensatory Damages, Treble Damages, Statutory Damages, Injunctive and Declaratory Relief and Attorney Fees against Casa de Campo Farallon, S.A., Rugiere Galvez. Filing fee $ 350.00 receipt number 113C-3511301, filed by Penrod International LLC. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Civil Cover Sheet, # 13 Summon(s) Casa De Campo, # 14 Summon(s) Rugiere Galvez)(Peretz, Steven) (Entered: 02/10/2011)

Court documents available in:

http://www.rfcexpress.com/lawsuits/trademark-lawsuits/florida-southern-district-court/70986/penrod-international-llc-dba-nikki-beach-v-casa-de-campo-farallon-s-a-dba-nikki-beach-playa-blanca-resort/summary/

http://www.scribd.com/doc/48621718/Penrod-International-v-Casa-de-Campo-Farallon-et-al

CASA DE CAMPO FARALLON, S.A.

PRESIDENTE RUGIERE GALVEZ

TESORERO MARUQUEL GALVEZ

SECRETARIO AURISTELA DE NARANJO

VICE-PRESIDENTE MARIO GOMEZ ESTRADA

Industry Insiders: Jack Penrod, Nikki Beach Principal

By Marcy MacDonald December 21, 2009

A family tragedy led entrepreneur Jack Penrod to choose a garden spot at his beach resort and name it after his daughter, Nikki. After some outside influences expressed interest in the location, Penrod decided to allow the garden to be used for parties and events, and it eventually became the well-known Nikki Beach Miami. The empire now includes locations in Cabo San Lucas, Marrakech, Marbella, Koh Samui , New York, Panama, St. Barts and Toronto, to name a few. The avid pilot and diver manages the jet set-friendly brand with his wife, Lucia and talks about the humble beginnings of a nightlife staple after the jump.

Full text in http://www.blackbookmag.com/article/industry-insiders-jack-penrod-nikki-beach1/14445

Comments by buyers in http://www.blackbookmag.com/comments/industry-insiders-jack-penrod-nikki-beach1/14445#comment-1

Nikki Beach Panama holds "Launching with Stars" http://mensual.prensa.com/mensual/contenido/2008/01/26/hoy/sociales.shtml Photo: Lucia Penrod and Rugiere Galvez, from prensa. com

Nikki Beach is Coming to Panama

By Mona Sutherland Published: 2007-01-22 Mona Sutherland

Mona Sutherland is the Search Marketing Specialist for WSI Panama.

A key player in the impressive growth of Panama real estate is the recently arrived Nikki Beach. Nikki Beach, created by Michael Penrod, is one of the trendiest beach clubs in Miami, frequented by celebrities and models. Nikki Beach possesses facilities in Miami and Hollywood in Florida, New York City, Saint Bartholomy in the Caribbean, Cabo San Lucas and Puerto Vallarta in Mexico, Marbella in Spain, Sardinia and Saint Tropez in the Mediterranean, in Morroco, and now, in Panama. Two hotel projects will be constructed and will operate under the brand Nikki Beach, one in Playa Blanca and the other at the Amador Causeway.

Michael Penrod, the international representative of Nikki Beach, was in Panama the first week of December to attend the launch of Destiny Real Estate Sales & Marketing. At the launch party, Destiny Real Estate & Sales presented three real estate developments to be constructed in 2007, which will be primarily promoted to the United States market. The three real estate developments represent a combined investment of 110 million dollars.

The project Casa Grande Luxury Beach Community involves a total investment of 60 million dollars over its three stages. The project, administrated by Nikki Beach International, will be located in Playa Blanca and possess a Polynesian style residential community, including a 100-room condo hotel and resort. Construction will commence in January 2007 and the first phase is scheduled for completion in December 2007.

Nikki Beach will construct the Panama Canal Hotel & Spa on the Amador Causeway, between the Yatch Club and the soon-to-be Ghery Museum. Approximately 30 million dollars will be invested in the Panama Canal Hotel & Spa, and construction will begin mid-2007. The arrival of Nikki Beach may attract a new crowd to Panama.

Traditionally, Panama has been an attractive destination for retirees, baby boomers and snowbirds. However, the concept of Nikki Beach is quite distinct from these other groups. Nikki Beach is focused towards an exclusive market: People over 30 with purchasing power that want to have a good time in an exotic, unique environment.

Nikki Beach is exclusive property of Michael Penrod and his family, though at some of their clubs and hotels they do maintain strategic alliances with local investors. Also, they own their own magazine, music division, clothing line and television station.

How did Nikki Beach arrive in Panama? Raul Almeida, Puerto Vallarta’s Nikki Beach representative, reveals that they were in search of new markets when they met Rugiere Galvez, president of Destiny Real Estate, who proposed the ideal. After they visited Panama, the rest was a matter of sorting out the details.

Panama could be the new destination for this exclusive market of “jet setters.” Almeida, stressing the positive economic impact that these projects have on a region’s tourism industry, spoke about the group of individuals that travel to other countries for a weekend’s entertainment, and that Panama could soon become a hit destination for this distinct crowd.

Penrod, who spent his entire visit signing contracts with 5 new hotels that will operate under Nikki Beach, added that they plan to offer a place where tourists and personalities can come during the winter to have a good time.

Pendrod has seen in Panama an “international environment” and believes that Nikki Beach will complement those characteristics. His aspiration is to make “something big” in Panama, such as celebratory parties for film or fashion festivals, such as those in Cannes and Venice.

From panamarealtor. com

Howard AFB becomes Panama Pacifico

2011-03-13T14:46:00.000-07:00

Many vets formerly stationed in Panama remember Howard AFB, named after Maj. Charles H. Howard (1892–1936), who flew in Panama during the period 1926-1929 and who had been part of the crew on a flight of B-10 bombers to Alaska in 1934. With the decommissioning of the base in 1999, Panama realized that leaving it to private enterprise was better than having any government run it, so it has become a low-tax zone for service exporters called Panama Pacifico.

The Panama Pacifico Special Economic Area is an area assigned for the production of goods and services with high added value and technology. It is located in the former Howard Air Station. Panama Pacifico governs its relations with the Panamanian State by means of Law 41 of 2004.

Incentives are granted for the following activities:

Corporate Main Offices
Back Office operations
Call Centers
Multimode and logistics services
High technology products and manufacturing through processes
Aircraft maintenance, repair and reconditioning
Services transfer to the aviation industry
Offshore services
Movie-making industry
Transmission of data, radio, television, audio and video
Transfer of inventories between companies established in the area
Transfer of goods and services to ships, airplanes and their passengers
Sale of merchandise not manufactured in Panamá Pacífico, destined for export, when manufactured by multinationals or any other of its affiliates, subsidiaries or companies of the same economic group.

Fiscal Incentives:

Exemption of any tax, fee, tariff, encumbrance or customs duties on any merchandise, product, equipment, service and other goods in general that are introduced in Panamá Pacífico.
Exemption of Transfer Taxes of Real Estate transfer and Services Taxes (ITBMS).
Exemption of any tax, customs duties, tariff, fee or charge with respect to the movement or storage of fuel or other hydrocarbon and its byproducts.
Exemption on any commercial or industrial license or registration tax.
Exemption of the Fiscal Stamp Tax.
Exemption of the Real Estate Tax on lands and commercial/industrial improvements, as well as improvements as of Real Estate Transfer Tax.
Exemption of the export/re-export tax of any other type of merchandise, product, equipment, goods or services.
Exemption of any tax, fee, customs duties, encumbrance, retention or other charges of similar nature applied to foreign creditor payments, for the interest, commissions, royalties and other financial charges generated by the financing or re-financing granted to companies of Panama Pacifico and for the financial lease of the equipment necessary for the development of the activities, businesses and operations that take place within Panamá Pacífico.

Labor Incentives:

Fixed tariffs for overtime (25%) and work in laborers holidays (50%).
Flexibility for assigning holidays to the employees.
The companies can open on Sundays and other holidays.
Foreign laborers: possibility to exceed the percentage rule of the Labor Code. The companies can request additional expat employees in excess of 15% if local labor is unavailable.
Higher Education Training Center.
Justified cause for dismissal due to losses and/or market fluctuations.

Immigration Incentives:

The one-stop-shops of the site handles all the procedures related to visas and labor permits for their employees.
Special visas are available investors and laborers (3 to 5 years is the standard period of time).
The visa benefit is extended to the immediate relatives of the laborer: spouse, dependant children up to 25 years of age, dependant parents over 62 years of age.
Introduction, only once, and tax-free of any personal and domestic belonging (up to US $ 100,000).

Important: Panama Pacifico has a One-Stop-Shop, where the process is promptly attended for the establishment of a business in the Howard area. This process joins the coordination of 15 government offices within the one sole site, and includes the paperwork of the visas and labor benefits which saves time and money to the companies.

http://www.aaeepp.gob.pa/
www.panamapacifico.com

Property Investing in Panama

2011-03-08T13:33:00.000-08:00

View a database of carefully selected investment property in Panama

SUMMARY : Panama City is one of the world's least expensive first-world cities. It is also among the most modern and prosperous cities in Latin America with over 3 million people. The city's array of tall skyscrapers is reminiscent of Miami. It boasts incredible shopping where almost any product from the U.S. may be easily found. During the past several years Panama has been consistently rated in the top ten for the best retirement locations worldwide. A welcoming community, safe environment, low crime statistics, excellent incentives for retirees, together with the natural beauty and ethnic diversity that is Panama, all appeal to the increasing number of baby boomers from North America and Europe who are looking for a different option for retirement.

Currency: (USD) Dollar

US Dollar: A global benchmark currency. Little or no exchange rate parity fluctuation against Middle East currencies. The cost of living is significantly lower than that of Western Europe.

Economic climate: The trend towards an open economy and possible trade pacts with such nations as the U.S. and Mexico are conducive to investment in Panama. There are also no government expropriation or interference as in many Latin American countries. A business-oriented government encourages foreign investment. A government that realizes the value of private business to a developing country backs all investment. In 1946 Panama's business-oriented mentality led to the creation of the Colon Duty Free Zone, considered to be the second largest free trade center in the world, after Hong Kong. In addition, the Panamanian government offers foreigners who invest in Panama many attractive incentives such as legal residency and tax privileges.

Capital Gains tax: Since the enactment of Law 8 of 1956, successive legislation has been passed offering tax benefits to developers. It has been widely accepted that, as a result of these incentives purchasers of real property have also benefitted. This tax is applicable if there is a capital gain. This tax is also regulated by Article 701 and applied at a flat 10% rate, whether a corporation or an individual is acting as a seller, on the gain resulting from the price of the sale minus the price of the acquisition by seller, as well as registration, notary and real estate agent expenses. If there is no capital gain on the transfer of a property, the 2% transfer tax, is also paid in advance for the sale, levied on the difference between the price of the sale or an appraised value increased at a 5% yearly rate (whichever is higher) and the price of acquisition by the seller.

Popular investment areas: Panama City has become a cosmopolitan modern metropolis - there are many raise buildings overlooking the ocean and the Bay of Panama. Exclusive residential areas like Marbella, Paitilla, Coco del Mar, Punta Pacifica and San Francisco offer a good range of apartments and condominiums for sale. Suburban residential areas in the former Canal Zone like Amador Heights, Balboa, Albrook and Clayton offer large and attractive single-family homes and condominiums. Casco Viejo -- the oldest city on the Pacific Coast of the Americas -- has become a desirable place for real estate investment, encouraged by the Panamanian government Casco Viejo investment incentives for the restoration of the historic Casco Viejo district. Outside Panama City, there are beautiful real estate properties located in popular destinations including, Chiriqui, El Valle, and Altos de Maria. Known mostly for their cooler climates, incredible flora and quiet peaceful atmosphere, real estate in the highlands of Panama are ideal for those interested in retiring abroad. Bocas del Toro is another popular destination for Panama real estate. Most known for its crystal clear waters, rich Antillean culture, unique over-the-water architecture and laidback tropical atmosphere. In recent times, Bocas del Toro has become a booming center for European and American Expats, as well as an impressive number of tourists. Several of these destinations are also considered Tourism Development Zones, where additional tax benefits are granted to investors in hotel projects. Real Estate Values in Panama and primarily in these Pacific Coast Beach areas has been appreciating very steadily, and as interest and growth increases so to do the real estate values.

Price ranges: The Panamanian government incentives for the restoration of the historic Casco Viejo district encourage investment here, this area reminiscent of New Orleans or SoHo years ago abounds with shells of graceful buildings that are crying out for renovation. Outside of Panama City excellent real estate properties are available for developers and individuals. The more remote the location the more reasonable the cost but be aware that you may be far from utilities or roads. The real estate in Bocas del Toro offers beautiful Caribbean beach property. Here palm-fringed golden sands surround the islands and turquoise waters where the rain forest meets the ocean. Here families shop by boat, enjoy water sports and the natural beauty of this wonderful location - better yet it is still affordable.

Budgetary guide: Prices per square meter in Panama vary according to the location (city, mountain, beach). In the city, you may find prices starting 1000$ per square meter in a new condominium. In the mountain, the price may drop down to 20$...yes this is not typo however in those cases you might want to research the access possibilities to this property. Many areas in the mountains have no road of access and local transportation might not be available. In the beach, prices depend on the zone. An hour away from the capital prices start at 600$ per square meter depending on the quality of the beach and neighborhood.

Service Fees: Fees charged by the Public Notary and the Public Registry which total in the range of $200 to $300 for registering a buy/sell contract for the sale of real estate in Panama.The closing costs vary depending on the particular transaction. For example, if the property is held in the sellers personal name, and the buyer is transferring the property title to a Panamanian corporation (most recommended), then the closing costs would include; (1) the legal property transaction fee of US$1200 (includes; title search, buy/sell contract, closing, & property title transfer service), (2) public registry title transfer fees of approx. US$2.50 per every US$1,000 of the sales price and – if applicable - the mortgage amount, (3) escrow fees from 0.5% to 1% of the transaction amount (vary depending on amount of transaction), and (4) incorporation fee of US$1000 to setup the Panama corporation. However, if the property is held by a Panama corporation already, and the buyer is purchasing the shares of the corporation, then the transaction is relatively simple because there is no registration of title transfer, meaning that there is no title transfer tax, and no public registry title transfer fees. In this case, the closing costs would include; (1) the legal property transaction fee (includes; title search, review of tax liabilities, purchase of shares contract, and closing for US$800), (2) change of directors / resident agent of the corporation (approx. $350), and (3) escrow fees from 0.5% to 1% of the transaction amount (vary depending on amount of transaction).The notary and public registry costs total up to approximately $200 to $300 depending on the particular transaction. Title transfer taxes are by law paid by the seller. Escrow fees (if an escrow company is used), are normally paid by the buyer, and range from one half of one percent (0.5%) up to one percent (1%) of the transaction.

Mortgages: Between 60% - 70% of the purchase price or appraised market value, whichever is the lesser. Interest Rate from 5.5% to 6.5%, plus FECI tax of 1% per year.

For more information go to:
www.slampanama.com
www.pensionadovisa.com
www.strategicpointconsulting.com

Can Panama Become the Singapore/Rotterdam-style Hub for Latin America?

2011-03-01T09:38:00.000-08:00

at 11:25 am by David

Keynote: H.E. José Domingo Arias, Vice Minister of Commerce and Industry, Panama
Keynote: Philip Yeo, Chairman, SPRING Singapore, Special Adviser for Economic Development, Prime Minister’s Office (view background presentation)
Keynote: Frank Heemskerk, Member of the Board of Management, Royal Haskoning
Moderator: Don Ratliff, Executive Director, Georgia Tech Panama Logistics, Innovation & Research Center

Frank Heemskerk: Happy to see economic relations between Panama and Netherlands growing stronger. President Martinelli is visiting Netherlands this year, discussing how to avoid double taxation between the countries. These have been some of the fastest negotiations ever.

Location is important, but it needs to be maintained and shared. The Netherlands’ success is a combination of location, business/tax climate, and quality of life. Education is very important and people want the best environment for their children. Freedom of press and freedom of speech — this is what people want. The Netherlands has met these goals and this the reason for their success.

Panama outpaces the Netherlands on GDP growth, but this an advantage to the Netherlands and to Singapore as it creates more wealth and more trade for the entire world.

José Domingo Arias: Panama has been developing it’s place as a trade and logistics hub for 400 years, starting with the gold trade from the continent’s Pacific coast to Spain. Terms have now changed. Trade comes from the west of the United States and travels to the east.

The Canal will expand its capacity to be able receive bigger ships. This takes a great deal of investment. Panama is already the eleventh most competitive country in the world, and offers the most efficient and competitive port in the Western Hemisphere. The free trade zone of Colon moves $20 billion in trade a year. The airport Tocumen is seeing 12 million passengers per year and expected to see this grow to 14 million. The government is also in the process of building the highway between Panama City and Colon and extending the highway across the country. The most important thing is that the government is doing all this with global commercial partners.

We are focusing on developing teaching and education in Panama, especially executive education. Most of these students are from the public sector. Our long term project is to renovate the country’s entire education system. Our private partners and universities have the capacity to identify their needs are and will handle their training.

Experience exchange with Singapore and the Netherlands is vital for us. We have studied their model. We are learning enormous amounts from Singapore in terms of technology, a field in which they have considerable experience. Someone from the private sector asked me what guarantees we could provide that we can deliver. Our prestige is on the line, and our style of the administration is to get things done.

Panel conversation: Success comes from collaboration of the private sector, the public sector, and investigations. The impressive thing about Singapore is they never stop trying to be the best, even though they are considered by many to be the best. Panama is trying to encourage entrepreneurship. How can it encourage creating a “critical mass” of ideas?

Will East coast U.S. ports on the East Coast be able to handle new big ships that will be passing through the expanded Canal? If not, this will be to Panama’s advantage as it mean ships will be unloading their cargo, although the United States will catch up eventually.

Panama is more of a logistics hub than a trade hub. Panama needs to build on this and improve. Suggestions include broadening the agenda using better social policy and better water management. Singapore and the Netherlands have been able to convince shippers of the value of going through Rotterdam’s and Singapore’s ports. They’re efficient, tariffs are cheaper, and they’re easier to use. Panama should follow these models.

More in http://www.as-coa.org/blogs/panama2011/

24 Feb 2011: Panama - Where the World Meets

2011-02-23T21:40:00.000-08:00

PANAMA
WHERE THE WORLD MEETS

Thursday, February 24, 20118:00 a.m. to 3:45 p.m.Registration: 8:00 a.m. to 8:30 a.m.Presentation: 8:30 a.m. to 3:45 p.m.
Panama Marriott HotelSalon Campo AlegreCalle 52 y Ricardo AriasPanama City, PanamaMap of location

Panama is set to continue growing at one of the fastest paces in Latin America. For 2010, Panama’s growth is expected to be 7 percent, and the IMF and UN forecast the country will lead GDP growth in the region over the next five years thanks in part to its public investment plans, which is close to $20 billion for the 2009 to 2014 period. More than 40 multinational headquarters have moved their regional operations to Panama due to its economic and political stability and have taken advantage of its strategic position and government incentives to attract investment. By continued strengthening of its logistics sector, Panama may be well positioned to become the Singapore-style hub for Latin America, providing foreign investors with a high-standard regional platform to develop its products and services in order to reach other markets.
For the second consecutive year, AS/COA, together with the World Bank and the government of Panama, is organizing a conference to provide an in-depth analysis of these issues. This year, the conference will be focused on the country’s economic prospects and the efforts and challenges to improve its competitiveness in the logistics sector.
Please join us as we address these issues with a group of internationally recognized senior business executives, government officials, economists and investment analysts.
CONFIRMED SPEAKERS:
Ricardo Martinelli, President of Panama
Demetrio Papadimitriu, Minister of the Presidency, Panama
Alberto Vallarino, Minister of Finance and Economy, Panama
Roberto Henríquez, Minister of Commerce and Industry, Panama
Alberto Alemán Zubieta, CEO, Panama Canal Authority
Edgar Blanco, Research Director, Center for Transportation and Logistics, MIT
Tanya Avellán, Director, Central America, Coca-Cola FEMSA
Frank Heemskerk, Member of the Board of Management, Royal Haskoning
Samuel Israel, CEO, Latin America, DHL Global Forwarding
Felipe Jaramillo, Central America Director, The World Bank
Sergio Luna, Vice President, Department of Economic and Sociopolitical Research, Citi Latin America
Rubén Ramírez, Representative Director, Panama, CAF
Don Ratliff, Executive Director, Georgia Tech Panama Logistics, Innovation & Research Center
Stefan J. Roehr, Director, Latin America Supply Chain, Sanofi-Aventis
Jordan Schwartz, Lead Infrastructure Economist, Latin America and the Caribbean, The World Bank
Peter V.A. Shaw, Regional Credit Officer for Latin America, Fitch Ratings
Carlos Urriola, General Manager Manzanillo International Terminal and Senior Vice President, Stevedoring Services of America
Philip Yeo, Chairman, SPRING Singapore, Special Adviser for Economic Development, Prime Minister’s Office (view a background presentation on Singapore’s economic development)
Susan Segal, President and CEO, Americas Society and Council of the Americas
ACCESS THE AGENDA.*

To register go to http://www.as-coa.org/blogs/panama2011/

Widening of Panama Canal results in more spending elsewhere

2011-02-20T15:49:00.000-08:00

The $5.25 billion being spent on widening of the Panama Canal is only the beginning of expenditures in the rush to accommodate giant container ships. Billions more dollars will be spent in the United States, as ports rush to expand facilities to receive the post-panamax ships passing through when the expansion is completed in 2014, one hundred years after it first opened.

Panama has been hosting delegations or port authorities and logistics experts from New York to Miami, including Savannah, and Atlanta, Georgia; Charleston, South Carolina; and Jacksonville Florida.

The widening will lead to the biggest shift in the freight business since the 1950s, when ships first started using giant containers of equal size.

Some of the ships known as post-Panamax can carry three times as many containers as the largest ships currently making the 48 mile transit.

The widening will also allow the U.S. Navy to transit some of its super sized aircraft carriers that currently have to make the long haul around the cape.

The expansion will enable products made in Asia to be sent directly to the East Coast instead of being unloaded on the West Coast and then sent east by train or truck.

A result could be a shift in business worth billions of dollars to ports, and big savings for companies like Ikea, Home Depot and Wal-Mart, always on the hunt for more efficient ways to serve shoppers in the Eastern third of the United States, where a majority of the U.S. population lives.

To capture some of the new traffic, almost every large East Coast port and those along the Gulf of Mexico have projects under way. Some ports that are too small to handle the giant ships are improving railroads and truck routes, making them more efficient in anticipation of an overall increase in the number of containers coming to the East says the New York Times.

Others want to dig deeper channels and become the leading port in their regions for companies operating the big vessels.

Containers have become the name of the game in shipping says a lead article. Although cruise ships and imports and exports of cars, oil and bulk agricultural loads like cotton and fertilizer still make up a good portion of port traffic, most of the growth is in containers filled with products that Americans like to buy.

The newest, biggest ships can carry the equivalent of as many as 15,000 containers that are 20 feet long. But they are also heavier, wider and require deeper water. In Savannah, for example, the water is only 42 feet deep. That is enough, with tidal variations, to handle ships loaded with 5,500 containers.

The port at Norfolk, Va., is 50 feet deep, and is the only one on the East Coast that can handle the biggest, fully loaded container ships.

The navigation channel that feeds the Port Newark-Elizabeth Marine Terminal in New Jersey is deep enough, but the Bayonne Bridge is not tall enough for the new container ships to pass under.

Officials at the Port Authority of New York and New Jersey are studying options. They might raise the bridge by 64 feet. A study estimated the cost at $1.3 billion.

As Savannah port officials are learning, digging up six feet of mud is not easy or cheap. Environmentalists are concerned that dredging will cause historic Savannah buildings along the shore to tumble into the water, suck sand from the shores of Tybee Island and ruin freshwater marshes.

The Corps of Engineers' environmental impact document, issued after a 14 yearstudy, suggested deepening but not widening the channel to protect the buildings along the shore and adding 3,000 acres of wildlife preservation land to help offset the impact on freshwater marshes.
http://www.dredgingtoday.com/2010/12/13/panama-canal-expansion-to-bring-major-benefits/

Panamapundit logs off

2011-02-18T12:29:00.000-08:00

Panamapundit is the username of Sam Taliaferro in his Panama Investor Blog postings until his unfortunate passing away. In his blog he provided updates about business developments in Panama not readily available in English, analyzed from a pro-business perspective and his experience developing a resort community in Panama. He will be missed....

Samuel Walker Taliaferro VII

June 10th, 1952 – February 17th, 2011

Sam Taliaferro, devoted father and husband, developer, entrepreneur and cherished friend to hundreds of people around the world, passed away early this morning after a two year battle with cancer.

Words like "pioneer" and "visionary" are used frequently to describe successful people but few truly deserve those titles as much as Sam.

http://primapanama.blogs.com/_panama_residential_devel/2011/02/samuel-walker-taliaferro-vii.html#tp

An inventor by profession, Sam developed and patented numerous technologies used by fortune 100 companies throughout the world. He built a number of manufacturing operations to build these technologies, the last one in Costa Rica in 1995.

In 2000 he had an idea to create Valle Escondido, a residential resort community in the mountain highlands of Panama that would appeal to those looking for an exotic yet first world lifestyle. The small village where the project is located has become known throughout the world as a retirement/tourist hot spot due to his marketing efforts and the success of the development. It was rated the number one foreign retirement destination in the western hemisphere by the AARP in 2002 and one of the top five best lifestyle values in the world by Fortune Magazine in 2005. The success of the project lit the fuse that started the real estate boom (and bust) in Panama.

In 2005 Sam began writing the Panama Investor Blog which focuses on the country from an investors prospective and reaches people interested in Panama from all over the world. Current subscription is about 7000.

Sam and his wife Thalia also operate the Valle Escondido resort Golf & Spa located in the center of the residential project. The resort employs about 80 full time Panamanians and is one of the areas largest employers.

http://primapanama.blogs.com/_panama_residential_devel/who-is-sam-taliaferro.html

Abuses by Panama Immigration Directors reach Inter-American Courts

2011-01-16T17:49:00.000-08:00

Abuses by Panama Immigration Directors against migrants now have resulted in a decision against the Republic of Panama by the Inter-American Court of Human Rights. Ecuadorian citizen Jesús Vélez Loor entered Panama in November 2002, when he was detained by the National Police border post in Tupiza, Darien. A detention order was issued by the then Director of Immigration - at the time Ilka de Barés, unnamed in the decision - and Vélez was mixed with the criminal population at La Palma jail. This was the 2nd time Vélez entered Panama without a permit, so he was convicted without due process under an administrative order to 2 years of imprisonment at La Joyita Detention Center.

Why are Panama taxpayers saddled with having to pay the penalties ordered against the Republic for abuses by unelected public officials ?

UPDATES FROM THE REGIONAL HUMAN RIGHTS SYSTEMS UPDATES FROM THE REGIONAL HUMAN RIGHTS SYSTEMS

Inter-American court of human rights rules against Panama for torture and wrongful detention of Ecuadorian migrant

In November 2010, the Inter-American Court of Human Rights (Court) ruled against Panama in its first case addressing the vulnerability of irregular and undocumented migrants. The decision in Vélez Loor v. Panama came seven years after the Court issued an advisory opinion on the rights of undocumented migrants. The opinion concluded that all migrants, irrespective of migratory status, must be guaranteed due process of law and full “enjoyment and exercise of human rights.” The advisory opinion also stipulated that states must affirmatively act to avoid limiting or infringing on the fundamental rights of migrants.

In November 2002, Panamanian police arrested Jesús Vélez Loor, an Ecuadorian national, for entering the country without appropriate documentation. He was subsequently transferred to a detention facility and sentenced, without legal representation or awareness of the proceedings against him, to two years imprisonment for entering Panama illegally multiple times. Vélez Loor testified to the Court that while imprisoned, he was subjected to tear gas, burns, sexual abuse, and beatings resulting in a cracked skull. Desperate to ameliorate his situation, Vélez Loor started a hunger strike and partially sewed his mouth shut. After Vélez Loor had endured deplorable conditions and abusive treatment for ten months, the Ecuadorian Consulate and Panamanian immigration authorities arranged his deportation, sending him back to Ecuador in September 2003. Although he reported his torture and the Panamanian Office of Foreign Affairs initiated an investigation, Panama made no further efforts to investigate Vélez Loor’s abuse. Vélez Loor, still suffering medical and psychological trauma as a result of his torture and prolonged detention, continues to speak out about the severe violation of his rights in the hopes that what happened to him “never happens to anyone else again.” More information on his story can be found on his blog at http://jessloor.wordpress.com//.

In Vélez Loor, the Court found that Panama violated the petitioner’s rights to humane treatment (Article 5), personal liberty (Article 7), judicial protection (Article 25), and fair trial (Article 8) under the Inter-American Convention on Human Rights (Convention). It also found that Panama violated Vélez Loor’s rights under the Inter-American Convention to Prevent and Punish Torture. Additionally, the Court ruled that Article 67 of Panama’s 1960 Decree Law No. 16, which allows punitive sanctions for violations of migration laws, is incompatible with the Convention when used as a basis for arbitrary incarceration. Rather, the Court held that states should only detain migrants sparingly and on an exceptional basis, for the shortest time and least restrictive means possible. Moreover, if an administrative body orders detention, a judge or tribunal must be able to review the decision and the detained migrant must be able to contact and receive help from his country’s consulate.

The decision indicates the Inter- American System’s intolerance of discriminatory, abusive, and punitive treatment of undocumented migrants as part of states’ broader attempts to curb illegal migration. With more than 214 million migrants worldwide and estimates of upwards of 400 million in the year 2050, increased attention to treatment of migrants and reform of broken immigration systems will be crucial. In Vélez Loor, the Court ordered Panama to pay monetary reparations to Vélez Loor, further investigate his allegations of torture, implement capacity- building measures for officials to enhance the investigation of torture claims, and provide appropriate detention facilities for those migrants it determines require state custody.

Full text in http://www.wcl.american.edu/hrbrief/18/3hrsystems.pdf?rd=1

Panama and Qatar Sign Tax Agreement

2011-01-07T07:59:00.000-08:00

After many announcements and press releases, the Qatar refinery in Panama has not broken ground yet. At least they signed a double taxation agreement...

HH the Emir Sheikh Hamad bin Khalifa al-Thani and Panama President Ricardo Martinelli witnessing
the signing of an agreement on the avoidance of double taxation and prevention of fiscal evasion
with respect to taxes on income and the protocol between the governments of the two countries in New York.

www.gulftimes.com

Panama and Cyprus Discuss Tax Agreement

2011-01-07T07:48:00.000-08:00

Panama and Cyprus are both countries which rely heavily on maritime logistics, banking center and tourism.

Meeting of President Christofias with the President of Panama
23/09/2010

The President of the Republic Mr Demetris Christofias had a meeting, yesterday, with the President of Panama Mr Ricardo Martinelli.

Present at the meeting was also the Government Spokesman Mr Stefanos Stefanou, the Permanent Representative to the UN Ambassador Minas Hadjimichael and the Director of the Diplomatic Office of the President, Ambassador Leonidas Pantelides.

After the meeting President Christofias made the following statement:

"I had a very cordial and friendly meeting with the President of Panama, which he requested. Panama is a friendly country to Cyprus, we are together at the Non – Aligned Movement for several years, with a very firm position on Cyprus issue. Of course, the President has reaffirmed his position that Panama stands by Cyprus in its effort to reunite the country and implement the international law and the UN Resolutions on Cyprus.

Moreover, we talked about the need to expand bilateral relations between the two countries. Agreements are underway about the avoidance of double taxation and, also, the abolition of visas in both countries. We also talked about the need to develop economic relations between the two countries. The distance is great and this is the only problem, but I believe that there is enough that connects us, which we should take into consideration."

Asked if the possibilities of cooperation between the two countries for shipping issues were discussed, the President of the Republic said:

"These issues were discussed a few times, they are on the agenda too, but I repeat, the distance is great. The Government of Panama is doing whatever possible to avert the docking of the ships under Panamanian flag, in Famagusta".
www .presidency.gov. cy

See also:
Panamá y Chipre firmarán tratado para evitar doble tributación
New Ambassador of the Republic of Cyprus to Panama - 03/11/2010

Панама корпорации закона

2011-01-03T09:37:00.000-08:00

Панама

Официальное название: Республика Панама
Площадь: 77 000 кв. км.
Численность населения: 32 560 000 чел.
Столица: Панама
Государственный язык: испанский, английский
Денежная единица: бальбоас, доллар США

Общая информация.

Уникальное географическое положение Панамы, занимающей длинный узкий перешеек между Атлантическим и Тихим океанами, издавна делало ее оживленным морским торговым перекрестком. Уже в начале XVI в., вскоре после открытия перешейка Колумбом, конкистадор Бальбоа по заданию испанского короля приступил к поиску соединяющего океаны морского пути. Он вышел через горы и тропическую сельву к тихоокеанскому побережью, но пролива не обнаружил. Безуспешными оказались и последующие попытки. Так что возникший в 1519 г. на месте индейской деревушки город Панама почти 400 лет оставался не межокеанским портом, а сухопутной перевалочной базой для ценностей — прежде всего золота и серебра, отправлявшихся из колоний тихоокеанского побережья Южной Америки в Испанию.

Преимущества:

Панама является офшорным центром уже более 75 лет.
Нерезидентные компании освобождены от налогообложения.
Соблюдается конфиденциальность информации о владельцах, акционерах, директорах.

Законодательство о компаниях	General Corporation Law, 1927; Law Regulating Enterprises of Limited Liabilty No. 24.
Тип безналоговой компании	Limited Panamian Corporation (LPC) — компания с ограниченной ответственностью, Partnership - товарищество.
Разрешенная деятельность	Любая незапрещенная деятельность.
Запрещенная деятельность	Вести бизнес с резидентами Панамы, за исключением фирм, предоставляющих юридические, бухгалтерские, банковские, консалтинговые и др. услуги, администрирование трастами и фондами. Владеть недвижимостью на территории юрисдикции. Вести банковскую, страховую, экспедиторскую деятельность без получения специальных лицензий и разрешений.
Налогообложение	Полное освобождение SAFI от налогов.
Ежегодные отчисления	Лицензионный сбор 600 USD (300 агенту, 300 регистрационному органу).
Валютный контроль	Нет.
Соглашения об избежании двойного налогообложения	Нет.
Срок и условия регистрации новой компании	10 дней.
Требования к названию компании	Возможно любое название, не зарегистрированное в реестре, указывающее на международный бизнес.
Уставный капитал	10 000 USD, разделенный на 100 акций по 100 USD каждая Для Limited Partnership уставный капитал составляет 2000—500 000 USD Нет требований относительно минимального уставного капитала.
Предложенный уставный капитал	Акции без номинальной стоимости и на предъявителя должны оплачиваться полностью. Акции на предъявителя хранятся у агента.
Акции	Акции на предъявителя или именные, с номинальной стоимостью или без номинальной стоимости.
Акционеры	Минимально — один.
Директора - количество - требования - полномочия	Три директора. Нет требований к национальности и гражданству.
Требования к собраниям - директоров - акционеров	Нет требований к проведению собраний директоров и акционеров.
Зарегистрированный офис	Обязательно.
Секретарь - количество - требования - полномочия	Нет требований.
Зарегистрированный агент	Один.
Необходимость - ведения бухгалтерии - сдачи годового отчета	Нет. Нет. Нет. .
Конфиденциальная информация	Сведения о владельцах, директорах, акционерах.

Source: Tax Consulting UK.

Panama as Regional Business Hub

2010-12-30T14:25:00.000-08:00

Because of the geographical position of Panama, located in the center of the American Continent, with access through land, sea and air, with a tropical year round climate, free of natural disasters. With an open service economy, capable human resources, dollarized economy, the international finance center, world class logistics platform and economic political and social stability, make Panama the ideal site for making businesses in the region.

WHY INVEST IN PANAMA?

Panama is a country with a service vocation, that possesses a privileged geographical location, that has allowed us to become one of the most important logistic centers of the Western Hemisphere for the storing and distribution of world cargo, a bridge for the mobilization of passengers to the entire American Continent and facilitator of efficient and modern communication services. As a commerce promoter, both nationally and internationally, Panama enjoys political, social and economic stability.

Panama has gone from being a bridge to becoming a logistic platform by air, sea and land, with the Panama Canal as main axis, transporting over 300 million of CPSUAB (Container, Bulk, etc.) presently serving more than 14,000 ships through 144 maritime routes and complementing with a system of container terminals in the Pacific and the Caribbean, that serve as cargo transship and redistribution, that recorded an annual movement of containerized cargo of 4.25 million TEU's, added to the inter-oceanic railroad that has a capacity 330,000 containers per year from one coast to anther. Panama also has the Colón Free Zone, the most important one in the Western hemisphere, with an annual trade exchange of over 19 thousand million dollars through its approximately 3,000 companies established in the Colón Free Zone. The development of the Panamá Pacífico Special Economic Area, in the former Howard Air Station, will serve as a space destined to the production of goods and high technology services.

We offer an efficient air service through the Tocumen International Airport, presently undergoing a remodeling process for offering a comfortable and safe atmosphere to all the travelers that visit our country and an expeditious and efficient attention to the transiting passengers, who do not go through customs or migration checks. From the airport the Copa Airline operates its Hub that offers more than 46 destinations to 25 countries in America and excellent connections, some of them with three daily flights to the most important cities of Latin America. In addition we account for with an excellent internal offer of direct flights to the principal cities of the interior of the country.

Panama has become the preferred center for the installation of five submarine optical fiber cables, turning into the ideal place for telecommunication companies and data centers since we have the advantage of offering great connectivity with North and South America, Europe, Asia and the Caribbean, advantages that companies have learned to use effectively, such as MCI, Cable & Wireless and Movistar that offer cellular telephony services and first quality internet to the international market.

Our prestigious International banking Center, with over 93 internationally renowned banks, reflected for the first Quarter of 2010, assets in the order of US$ 65,000 millions.

Our medical and health services are well known internationally and they have the two best private hospitals of the Central American region; equipped with the most recent medical technology, and they are affiliated to world famous hospitals such as the Baptist Hospital in Miami, Florida and the Johns Hopkins Medical Center in Baltimore, Maryland.

Our tropical climate and varied tourist offer sets us among those preferred for the travelers that can find in our country picturesque indigenous and colonial communities, white sand beaches and coral reefs with indescribable beauty, mountains with fresh climates and tropical jungles with an exuberant vegetation, habitat of innumerable flora and fauna species. And with our excellent highway network and short distances the country can be toured in only six hours.

For these reasons, Panama has been chosen by important multinational companies such as Samsung Electronics, Inc., DHL, DELL, Hutchinson Port Holding Group, HSBC, BICSA, SCOTIABANK, Assicurazioni Generali, American Life Insurance Company and many more, as main offices for their regional operations. In addition, some of the most recognized International Organisms such as UNICEF, UNDP, OAS, the Spanish Agency for International Cooperation (AECI, initials in Spanish), and the BLADEX [Latin American Export Bank] among others, have chosen Panama for establishing their operations.

Panama offers goods and services at reasonable prices as compared to its nearest neighbors, with Free Trade Treaties (TLC, for initials in Spanish) with Taiwan, El Salvador, Singapore and Chile. Furthermore, we are going through the final negotiations of a TLC with the United States and Central America and we are preparing our entrance in the G-3.

http://proinvex.mici.gob.pa

$2.6 billion in loan guarantees vs. 13,000 jobs

2010-12-30T14:23:00.000-08:00

Right after the U.S.-Panama Tax Information Exchange Agreement was signed by Vice-President Juan Carlos Varela, he attended the signing of an agreement for the US $2.6 billion purchase by COPA airline (NYSE: CPA) of 32 Boeing (NYSE: BA) airplanes, with financing guaranteed by the U.S. Export-Import Bank http://www.exim.gov .

The same day that 13,000 jobs of the Panama financial center are put in jeopardy, a Panamanian multinational secures financing guaranteed by the U.S. taxpayer. Quid pro quo?

Copa and Boeing sign largest ever Panama-US business deal

Wednesday, 01 December 2010 17:35

Panama's principle airline Copa, and the Boeing aircraft company signed a $2.6 billion dollars agreement for the purchase of 32 aircraft onTuesday (November 30).

It was the largest ever business transaction between the U.S. and Panama

The ceremony took place at the U.S. Department of Commerce, soon after the signing of a tax disclosure agreement between the two countries.
Panamanian vice president and foreign minister, Juan Carlos Varela represented the government at the ceremony along with the chief executives of both companies: Pedro Heilbron of Copa Airlines, and Jim Albaugh of Boeing.

The 32 aircraft will be delivered between 2015 and 2018, and are part of the planned growth of the company, said Heilbron.

Copa Holding's president, Stanley Motta, and Vice President of Finance, Victor Vial, shared details of the funding for the deal, which was supported by a group of international banks such as Citibank, JP Morgan Chase, BNP Paribas, and Bank Exim.

Motta said the loan was agreed at very low rates for the guarantees provided by the Exim Bank.

http://www.newsroompanama.com/business/2033-copa-and-boeing-sign-largest-ever-panama-us-business-deal.html

EX-IM BANK SUPPORTS $132 MILLION US AIRCRAFT SALE TO PANAMA
Largest Ever Ex-Im Bank Transaction To This Country

The Export-Import Bank of the United States is providing a $113 million long-term guarantee to support the $132 million export by The Boeing Co., Seattle, WA, of four B737-700 aircraft plus two spare engines made by CFM International, Inc., Cincinnati, OH, to Compania Panamena de Aviacion, S.A. (COPA), Panama City. Each Boeing aircraft is also equipped with two CFM engines.

"This is the largest transaction ever authorized by Ex-Im Bank for a company in Panama," said Ex-Im Bank Chairman James A. Harmon. "We are delighted to finance US exports that support economic growth in this important Central American market while sustaining US jobs at thousands of Boeing subsuppliers at home."

Ex-Im Bank has supported Panamanian customers for over 50 years. This latest transaction is more than double the previous record-setter, a $60 million financing of a gas turbine export in fiscal 1994.
...

Full text in http://www.exim.gov/pressrelease_print.cfm/070FCCF7-0A18-EFDE-9CA82347DE2AAF8B/

http://mire.gob.pa/noticias/vicepresidente-y-canciller-varela-orador-en-firma-de-contrato-entre-copa-airlines-y-la-comp
http://www.dialogo-americas.com/en_GB/articles/rmisa/features/regional_news/2010/12/03/feature-03
http://www.ascendworldwide.com/2010/12/copa-airlines-completes-order-for-32-boeing-737ngs-valued-at-usd-26bn-seeking-financing-from-eximban.html
http://www.allbusiness.com/transportation/air-transportation-airlines/5896820-1.html

History of Real Estate Agents

2010-12-28T10:44:00.000-08:00

December 28 in Panama is Innocents' Day which is similar to April's Fools Day and remembered with hoaxes. For the next time you are looking at properties in Panama with a real estate agent, here is a joke to share from Kelly's.com:

6 MILLION BC: God searches for a planet to establish life. Encounters real estate agent from "Lucifer's Planets & Gardens" who says "I've got a great deal on a fixer-upper just 90 million miles from the Sun."

5.9 MILLION BC: God buys the Earth and, after the closing, discovers it is a mass of molten goo. Angry, God confronts the agent and banishes him to spend eternity wearing polyester suits.

4 MILLION BC: God creates the ocean and the seas. By accident, a pool of pond scum transforms itself into the National Association of Realtors.

3.5 MILLION BC: God creates Florida.

3.49 MILLION BC: Thousands of real estate agents crawl out of the ocean to scout good condo locations. Market immediately crashes when agents realize that "snow birds" won't be invented for another 2 million years.

3 MILLION BC: A meteor crashes into Earth. The resulting crater creates a giant black hole filled with green ooze. The Multiple Listing Service is born.

2.45 MILLION BC: God makes Adam and Eve. However, delays in constructing Garden of Eden force Adam and Eve to live in an apartment eight months.

244 MILLION BC: Shopping for a move-up garden, Eve visits an Open Garden and encounters a fork-tongued real estate agent who tells her, "Garden, why would you want another one of those? I've got an entire apple orchard you can have real cheap."

243 MILLION BC: Adam and Eve become the first humans to truly understand what it means to buy from a real estate agent.

550 BC: Jealous of rising property values, real estate brokers in Greece devise a way to attack Troy by using a Trojan Horse.

42 BC: Cleopatra decides to build the Pyramids. Real estate agent and builder try to convince her that Squares would be much cheaper.

30 BC: Rome touted as "the hottest housing market in Europe" Thousands of buyers flock in to make deals with real estate agents.

29 BC: Rome real estate crashes. Julius Caesar calls a meeting of his advisors to see what can be done. Chief real estate broker Brutus suggests Caesar tours Rome to inspire consumer confidence. "Just lead the way," Brutus says, "I'll be right behind you."

500 AD: Middle ages bring major real estate slowdown. Agents are forced to take second jobs as undertakers. Scandal breaks out when agents are discovered to be removing gold fillings from dead people.

1308 AD: Real estate agent list a tower in Pisa, Italy as a "one of a kind property. Solid building guaranteed not to lean."

1492 AD: Christopher Columbus lands in America. However, he mistakenly believes he's in India, thanks to a bogus land survey provided by a Spanish real estate broker.

1620 AD: Pilgrims land on Plymouth Rock. First colonial real estate agent promises Pilgrims that Massachusetts is "always sunny and warm. Never drops below 70 I swear."

1621 AD: Giant blizzard nearly wipes out Pilgrims. Real estate agent is banished to New Jersey.

1626 AD: Manhattan bought for 100 beads and trinkets from the Indians. The Indians' real estate agent takes 6 beads as a commission.

l803 AD: Napoleon shocks and angers French real estate agents when he sells Louisiana to United States without an agent. At 515 million, sets record for largest "FSBO" (for sale by owner) sale in history.

1867 AD: United States purchases Alaska from Russia for 2 an acre, after Russian Czar is given advice by real estate agent that Alaska is "utterly useless" land with no value at all.

Why Tax Information Exchange Agreements Are 'Toothless'

2010-12-04T15:14:00.000-08:00

Despite the ominous messages being communicated to the public, taxpayers have little to fear from the tax information exchange agreements (TIEAs) to which most tax havens have rushed to commit.

July 16, 2009
by Kristofer Neslund, CPA/DBA

.... the flaws in the Model TIEA overwhelm its positives.

Weaknesses

The OECD has frequently noted that havens that had agreed to adopt the TIEA failed to implement it. There is a real concern that some or many of the haven jurisdictions that rushed to announce their commitments to the TIEA were simply playing for time, hoping the furor will die down before they actually have to implement the agreements.

Domestic bank secrecy laws trump these agreements. Indeed, UBS has raised Swiss bank secrecy laws as its primary defense in the current John Doe summons enforcement proceeding.

Havens are exempt from supplying information they do not collect and they often collect little. The British Virgin Islands, for example, has more than 400,000 registered corporations but requires neither the identification of shareholders or directors nor the maintenance of financial records.

Severe procedural restrictions are imposed to preclude "fishing expeditions" — i.e., broad, general inquiries. Automatic information sharing is expressly excluded.

The requesting jurisdiction must:

- Identify a specific person,
- Identify the specific information sought and the tax purpose for seeking it,
- Identify why it believes the information is within the requested jurisdiction and
- Demonstrate that it has exhausted all other means for obtaining the information.

The result is a slow and unwieldy process that precludes serious real-time help to tax authorities. Offshore tax cases are complex and labor-intensive, taking 500 days longer than normal to develop. The cumbersome, low-yield information exchange process contributes to these delays and deters the IRS from aggressive enforcement. Even when the government has proven criminal activity, the process is ineffectual. The U.S. sent tax information requests to Switzerland after UBS admitted to criminal activity; it received back only 12 names (out of an estimated 52,000 U.S. accounts holding $15 billion). It is not surprising that there are only a few dozen TIEA requests each year. To be of genuine value, information sharing needs to be comprehensive, real-time and automatic.

Critics argue that the havens' rapid adoption of Model TIEA is little more than public relations, allowing them to make a show of cooperation while going about business as usual, supported by governments that are more than happy to have their taxpayers believe that offshore tax evasion has become much more dangerous.

The OECD's Model TIEA seems to have adopted a lowest-common-denominator approach — offering minimal effectiveness to gain widespread acceptance by havens, in turn allowing world leaders to proclaim a global assault on offshore tax evasion. Given the sharply opposed interests of some of their members, the TIEA's endorsement by the G-7, G-8, G-20, United Nations and EU is supportive of this view.

The establishment of a low information exchange standard for the international community could backfire. Tax havens — little deterred by their TIEAs — are likely to assert that, by having implemented the benchmark standard, they have ceased to be "tax havens." The Bahamas' ambassador to the U.S. has suggested as much on behalf of the Caribbean TIEA adopters. This assertion may be hard to counter without embarrassment; and it may become very difficult to sanction adopting havens when it becomes obvious that their behavior has not changed.

Conclusion

There are many reasons not to engage in offshore tax evasion, but the Model TIEA is not one of them.

The public has been led to believe that all it takes now to open the international information floodgate is a simple request by a tax authority. Not so. The Model TIEA is a slow, largely ineffectual, resource-intensive process that seems unlikely to be used much more in the future than it has been in the past, despite the increased number of haven jurisdictions adopting it.

Tax practitioners should be rendering advice based on the reality, not the perception, of these agreements.

Kristofer Neslund, CPA/DBA, LLM, JD, is an associate professor of taxation at the Golden Gate University.
Read the full text in http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2009/Tax/Toothless.jsp

U.S., Panama Sign New Tax Information Exchange Agreement

2010-11-30T23:36:00.000-08:00

The U.S. has Tax Information Exchange Agreement (TIEAs with the following offshore financial centers:
Bahamas
Barbados
Bermuda
Cayman Islands
Costa Rica
Dominica
Gibraltar
Grenada
Jersey
Liechtenstein
Netherlands Antilles
St. Lucia

The TIEAs with Antigua and Belize were terminated.

Fortunately, Panama law allows entities to redomicile corporations and foundations to other countries...

In a ceremony at the U.S. Department of the Treasury on Tuesday, November 30, Treasury Secretary Tim Geithner and Panamanian Vice President and Minister of Foreign Affairs Juan Carlos Varela signed a tax information exchange agreement (TIEA) between the United States and Panama.

A press release on the TIEA can be viewed at link; the full text of the TIEA can be viewed at this link; and the TIEA Joint Declaration at this link.

The Department of State has the honor to refer the Embassy of the Republic of Panama to the
Agreement between the Government of the United States of America and the Government of the
Republic of Panama for Tax Cooperation and the Exchange of Information Relating to Taxes
(“the Agreement”), signed today, and to confirm on behalf of the Government of the United
States the following understandings reached between our two Governments (“the Parties”):
1.
With respect to subparagraph 1(a) of Article 3 (Taxes Covered) of the Agreement, it is
mutually understood by the Parties that the term “all federal taxes” includes the following
taxes imposed by the United States:
2.
With respect to subparagraph 1(b) of Article 3 (Taxes Covered) of the Agreement, it is
mutually understood by the Parties that the term “all national taxes” includes the
following taxes imposed by the Republic of Panama:
(a)
Income Tax
(b)
Real Estate Tax
(c)
Vessels Tax
(d)
Stamp Tax
(e)
Notice of Operations Tax
(f)
Tax on Banks, Financial and Currency Exchange Companies.
(g)
Insurance Tax
(h)
Tax on the Consumption of Fuel and Oil Derivates
(i)
Tax on the Transfer of Movable Goods and the Provision of Services
(j)
Tax on the Consumption of certain Goods and Services
(k)
Tax on the Transfer of Immovable Goods
3.
With respect to Article 9 (Costs) of the Agreement, it is mutually understood by the
Parties that costs that would be incurred in the ordinary course of administering the
(a) Federal income taxes;
(b) Federal taxes related to employment;
(c) Federal estate and gift taxes; and
(d) Federal excise taxes.

domestic tax laws of the requested State shall be borne by the requested party when those
costs are incurred for purposes of responding to a request for information. It is also
mutually understood by the Parties that all other costs are considered extraordinary costs,
and shall be borne by the requesting party. Examples of extraordinary costs include, but
are not limited to, the following:
(a)
fees charged by third parties for research and copying documents;
(b)
fees for non-government counsel or experts appointed or retained, with the
approval of the competent authority of the requesting Party, for litigation in the
courts of the requested party related to a specific request for information;
(c)
fees and expenses of a person who appears for an interview, deposition or
testimony relating to a specific information request. The fees and expenses will
be the ordinary amounts allowed under the laws of the party in which the
interview, deposition or testimony is held or taken.
The competent authorities shall consult with each other in advance if extraordinary costs
are likely to exceed $1,000, or in the case of subparagraph (c) of this paragraph, $100, in
order to determine whether the requesting Party will continue to pursue the request and
bear the cost.
4.
The Government of the United States of America and the Government of Panama intend
that the Agreement enter into force as soon as is practicable following the enactment of
any legislation by Panama that is necessary under its domestic laws in order for Panama
to comply fully with the terms of the Agreement. The Government of Panama expects
that this legislation will be enacted before the end of 2011. As soon as practicable after
such legislation has been enacted, the Government of the United States and the
Government of Panama intend to take such actions, including exchange of notifications,
as are necessary to cause the Agreement to enter into force in accordance with its terms.
5.
The United States understands that, with respect to the necessary legislation referred to in
paragraph 4, Panama intends to enact legislation requiring the identification of the
owners of bearer shares. The United States further understands that such legislation:
(a)
will require resident agents acting for Panamanian entities to obtain and
maintain in their records information sufficient to identify the owners of
those entities, even in cases in which shares of those entities are issued in
bearer form, including, where the owner is a legal person, information
sufficient to identify substantial owners of that legal person. For this
purpose, a resident agent will not be required to obtain and maintain
information sufficient to identify substantial owners of legal persons in
cases where the resident agent acts for a professional client that is part of

an organization that is required to maintain information on such entities
and that has agreed to make available such information to the resident
agent when requested;
(b)
will require resident agents to produce ownership and client identity
information in their possession in response to a proper request under the
Agreement, whether with respect to newly-formed entities or entities in
existence at the time the legislation is enacted; and
(c)
will require resident agents to obtain such ownership information with
respect to entities existing at the time the legislation is enacted within a
five year period from the date of the enactment of the law.
6.
It is mutually understood that under laws currently in effect, each party is authorized to
obtain and exchange information, including information held by financial institutions and
other fiduciaries, pursuant to a request under a tax information exchange agreement,
regardless of whether the requested party has a domestic tax interest in such information.
7.
Under section 274(h) of the U.S. Internal Revenue Code, an individual may deduct from
income expenses incurred with respect to attendance at a conference or convention held in
Panama in the same manner and to the same extent the individual would be permitted to
deduct such expenses with respect to attendance at a conference or convention held in the
United States, provided that there is in effect between Panama and the United States a tax
information exchange agreement meeting the requirements of section 274(h)(6). It is
mutually understood that the Agreement is intended to meet those requirements.
8.
It is mutually understood that the entry into force of this Agreement does not prevent the
Parties from discussing the possibility of an agreement for the avoidance of double taxation
in the future.
The Department has the further honor to propose, on behalf of the Government of the United
States of America, that the present note and the Embassy’s affirmative reply thereto confirming
that the Government of the Republic of Panama shares these understandings shall constitute an
agreement between the two Governments on these points which shall enter into force on the
same date as the Agreement.
Department of State,
Washington, November 30, 2010

Say goodbye to your BVI bearer shares on December 31, 2010

2010-11-17T15:25:00.000-08:00

Many users of British Virgin Islands (BVI) International Business Companies are not aware that by December 31, 2010 they must have turned in their bearer shares to an authorized custodian. An additional tax of One Thousand Dollars (US$1,000) and a custodian fee must be paid every year. Alternatively, shareholders can amend the company charter to prohibit bearer shares and replace any bearer shares for shares made out to a nominee.

Resident Agent / Offices of British Virgin Islands (BVI) Companies are required to remind customers to comply with the BVI BC Act 2004 in relation to bearer shares and the possible consequences of not complying with the new regime which took effect from January 1, 2010.
The consequences for companies that did not comply with the new regime of bearer shares, as confirmed by the BVI regulator, include among others:
- the loss of all rights which a shareholder may have as such("disabled bearer shares") .
- The payment of the cumulative difference between the rate applicable to government companies without bearer shares and the new government rate for companies with bearer shares in custody.
- Fines by the BVI Financial Services Commission (BVI FSC) for breach of the law.
BVI Service providers and Resident Agents reserve themselves the right to provide services such as restoration, change of registered agent, amendments to the charter and articles of association of companies, or to sign documents for companies with disabled bearer shares.
As for companies which nominee director services are provided, information of the new shareholders must be provided, in order to prepare the necessary documentation and to comply with the requirements of the law. Nominee directors who do not receive said information on time, are likely to resign as directors of these companies.
For more information on BVI companies see :
BVI INternational Financial Center www.bviifc.gov.vg/

BVI Financial Services Commission http://www.bvifsc.vg/
Offshore Structures http://mypanamalawyer.blogspot.com/2010/10/are-offshore-structures-for-you.html

7 May 2004
PRESS RELEASE
BVI PREPARES TO IMMOBILISE BEARER SHARES
ENCOURAGES APPLICATIONS FOR “CUSTODIAN” STATUS FROM JULY

The BVI is poised to take a major step in July towards immobilising bearer shares by starting the applications procedure for custodians of bearer shares.
New legislation will ultimately require all bearer shares in BVI International Business Companies (IBCs) to be held by a custodian and thus immobilised. Companies formed before 1 January 2005 will have until 31 December 2010 to comply.
Companies formed after 1 January 2005 must comply from their date of formation.
To enable custodians to be in place by 1 January 2005, the BVI Financial Services Commission will consider applications to act as custodians from 1 July 2004.
Those eligible to apply as an “authorised” custodian will be service providers licensed under any BVI financial services legislation, as well as bodies corporate incorporated or formed outside the BVI that are not resident in, and do not have a place of business in, the BVI.
Those eligible to apply as a “recognised” custodian will be investment exchanges or clearing organizations that operate securities clearance or settlement systems in a jurisdiction which is a member of the Financial Action Task Force.
All applicants to be “authorised” custodians will have to satisfy the Financial Services Commission that they meet certain “fit and proper” criteria and have the necessary systems in place for safe custody of their bearer shares.
For bodies corporate, the Commission will consider the prudential regulation and anti-money laundering regulations with which the bodies have to comply.
The Commission may attach conditions to its approval and vary or revoke these.
To assist potential applicants for custodian status, the Commission has issued a new Aide Memoire, entitled, Criteria for Approval of Authorised Custodians of Bearer Shares of BVI Incorporated Companies. Besides setting out the criteria the Commission will use when approving custodians, the Aide Memoire addresses, inter alia, the duty of custodians and the grounds on which the Commission may revoke approvals.
Commenting on the new bearer shares regime, Robert Mathavious, Managing Director and CEO of the Financial Services Commission, said, “These measures enable the BVI to comply with all international standards, including the 40 anti-money laundering recommendations of the Financial Action Task Force. They are the result of close cooperation between the BVI private sector, government and regulator. The Commission encourages all potential custodians to apply from 1 July.” NOTES TO EDITORS 1. The Aide Memoire is available on the Financial Services Commission’s website at www.bvifsc.vg 2. The International Business Companies (Amendment) Acts of 2003 and 2004 provide the legal framework for immobilising bearer shares. The Acts are due to come into force on 1 January 2005.
3. The Financial Services Commission (Amendment) Act of 2004 addresses the regulatory framework for immobilising bearer shares, in particular the rules governing custodians. It is due to come into force on 1 July 2004.
4. IBCs will be able to amend their Memoranda of Association to state that they are authorised to issue only registered shares and that these may not be exchanged for bearer shares. They will be required to file this statement with the BVI Registrar of Companies, along with a declaration that they have no bearer shares in issue.
5. The new rules are the result of extensive consultation with BVI service providers. They are based on the recommendations of a private sector panel that the Financial Services Commission convened to examine the issue.
6. Although the IBC (Amendment) Act of 1993 envisaged a deadline for immobilisation of bearer shares of 31 December 2004, the private sector panel recommended a seven-year transition period before the new legislation took effect. A further IBC (Amendment) Act of 2004 gave effect to this recommendation, setting a new deadline for immobilisation of 31 December 2010.
7. Most of the 500,000 IBCs registered in the BVI currently have the power to issue bearer shares. Whether they have in fact issued these and have bearer shares outstanding is not certain.
8. Bearer shares are not unique to BVI IBCs. They are widely used in Europe by non-listed companies and are also popular in Latin America, the Far East and some US states.
http://www.bvifsc.vg/Default.aspx?tabid=134

If you need a Resident Agent or Custodian for the bearer shares of your BVI company, contact us through our website, by email, Bitwine or Skype

U.S.-Panama Business Group Gears Up For Washington FTA Lobbying Push

2010-11-12T19:15:00.000-08:00

Inside U.S. Trade - 10/22/2010
Posted: October 21, 2010

U.S.-Panama Business Group Gears Up For Washington FTA Lobbying Push

A U.S.-Panama business group is planning a new push to lobby the Obama administration and Congress to secure the approval of the long-stalled U.S.-Panama free trade agreement, according to a Panamanian private-sector source.
The U.S.-Panama Business Council will hold meetings in Washington on Nov. 18-19 with U.S. lawmakers, State Department officials and members of the U.S. private sector, this source said. He did not provide further information on what the group planned to discuss during these meetings.
Panamanian sources said the primary obstacle to the passage of the U.S.-Panama FTA remains the demand by the U.S. that Panama sign a tax information exchange agreement (TIEA) with the U.S.
Panamanian Vice President Juan Carlos Varela and U.S. Trade Representative Ron Kirk discussed the tax transparency issue during a Sept. 30 meeting in Washington, according to USTR spokeswoman Nkenge Harmon.
The two officials also discussed U.S. concerns with "certain aspects of Panama's labor regime," Harmon said in an e-mailed statement.
One Panamanian source said during this meeting the U.S. sought to entice Panama into signing a TIEA by saying that in exchange it would allow a tax deduction for U.S. business travelers who visit Panama for conventions, seminars or other meetings.
Such a deduction is currently available for domestic travel, as well as travel to Canada, Mexico, Costa Rica, Guyana, Honduras and some Caribbean destinations, according to Rebecca Wilkins, senior counsel for federal tax policy at Citizens for Tax Justice. However, this deduction is not available if such meetings are held on cruise ships, Wilkins said.
Such an agreement would require the Panamanian government to hand over information on Panamanian bank accounts used by U.S. persons upon request by the U.S. government, which goes against current bank secrecy laws in Panama, they said.
Panama is currently listed on the Organization for Economic Co-operation and Development's "gray list" because of its status as a tax haven. In order to secure removal from the list, a country needs to implement 12 TIEAs or Double Taxation Treaties (DTTs) with full tax information exchange provisions (Inside U.S. Trade, June 11).
As of Oct. 20, Panama had signed nine such DTTs, according to a press release from the office of Panamanian President Ricardo Martinelli. Panamanian sources said three additional DTTs have already been negotiated and their signing is expected before the end of the year.
According to one Panamanian source who opposes the signing of a TIEA with the U.S., a recently passed U.S. law already would require some Panamanian banks to report information automatically on U.S. account holders.
The Hiring Incentives to Restore Employment (HIRE) Act, which President Obama signed on March 18 and is slated to go into effect on Jan. 1, 2013, includes provisions that will require foreign banks that do business with U.S. banks to report information on U.S. account holders in one of two ways, according to Wilkins.
The first option is for these banks to submit a Form 1099 to the Internal Revenue Service that would report the income earned on the U.S. account. The second option is for these banks to fulfill more stringent reporting requirements contained in the HIRE Act, under which the banks would not have to report the total income on the account but would have to provide information on the maximum amount in the account and the aggregate amount of transactions on the account.
In both cases, the banks would have to report the name, address and taxpayer identification number of the U.S. account holder.
Asked if these reporting requirements would make information exchange provisions in the TIEA redundant, Wilkins said this would not be the case. While the HIRE Act provisions would be helpful because they could aid the U.S. in identifying tax evaders by name, the TIEA provisions are also necessary because they allow U.S. authorities to request Panamanian authorities hand over any information about U.S. account holders upon request, Wilkins said.
One Panamanian source said the government had recently implemented a change to its law that would allow Panama's tax agency to gather information on account holders if such information is requested by a foreign government under the DTTs Panama is signing with other countries. He explained that this change was necessary in order to implement the tax information exchange provisions chapters of these DTTs.
TIEAs spell out in great detail the procedure for exchanging tax information between two governments. For example, the TIEA between the U.S. and the Cayman Islands consists of 13 detailed articles in information exchange.
By contrast, the OECD Model Tax Convention Article 26 Panama wants in a DTT with the U.S. is comprised only of five sections outlining basic commitments (Inside U.S. Trade, June 11).

See full text in
http://insidetrade.com/Inside-US-Trade/Inside-U.S.-Trade-10/22/2010/us-panama-business-group-gears-up-for-washington-fta-lobbying-push/menu-id-710.html

Read Also:
Un Acuerdo con Pocos Beneficios
http://competenciafiscal.blogspot.com/2010/06/un-acuerdo-con-pocos-beneficios.html

Nov 17, 2010 'Panama Week' planned in Washington, D.C.

2010-11-08T17:22:00.000-08:00

'Panama Week' planned in Washington, D.C.

The new version of "Panama Week" will take place starting Nov. 17 in Washington, D.C.

Félix Carles, president of the U.S.-Panama Business Council, said the motto of this year's event is "Panama, changing world trade."

One of the objectives of the event is to promote the ratification of the free trade agreement between the two countries that is still waiting to be discussed by the U.S. Senate.

It will also emphasize the role of the country as a maritime center, the progress of the Panama Canal expansion and the modernization of Tocumen International Airport.

The Panama Tourism Authority will also discuss its master plan at the event, which is aimed at increasing the number of visitors to the country.
http://mensual.prensa.com/mensual/contenido/2010/09/30/hoy/english/news_4891.asp

PANAMA WEEK 2010
Panama: Changing Global Commerce
Venue: Washington Hilton Hotel, 1919 Connecticut Ave., NW, Washington, D.C

For registrations and sponsorship opportunities contact UNITED STATES-PANAMA BUSINESS COUNCIL (USPA)
5353 Memorial Drive #2041, Houston, Texas 77007
Tel. (713) 426-0554 / Fax. (713) 426-0375 / E-mail: Panamerica @msn.con http://uspanama.webs.com/pwsponsorlevels.htm

November 1, 2010

Dear Friends of Panama and the United States

The U.S.-Panama Business Council (USPA) was created in 1994 with the mission of strengthening relations between the United States and Panama, and promoting business opportunities between the two countries. During its sixteen years of existence the Council has organized hundreds of programs and events which have greatly contributed to enhancing relations between the two countries.

Every year the Council organizes a comprehensive program in Washington D.C. entitled Panama Week. This year Panama Week will be held on November 18-19 in the Nation's Capital, coordinated by both the U.S. and Panama USPA associations. We anticipate a strong attendance this year, and several high profiled speakers that will address the numerous business opportunities offered by Panama.

Panama's excellent economic climate has produced positive news over the past five years with annual growth close to double digits. Even in 2009, when the world was impacted by a financial crisis, Panama still registered economic growth. The Panama Canal is undertaking an ambitious expansion, unemployment has decreased dramatically, the country attained investment grade and recently a $13 Billion investment plan was announced for the next five years.

An updated program is enclosed and periodic updates will be published in USPA USA website http://uspanama.webs.com/pwprogram.htmSeveral Ministers from Panama will be attending the program including Minister of Commerce and Industry H.E. Roberto Henriquez, Minister of Tourism H.E. Salomón Shamah, Minister of Energy H.E. Juan Urriola and Deputy Administrator of the Panama Canal Authority Jose Barrios Ng. The traditional black tie Gala Friendship Awards Dinner will be held on the evening of Thursday, November 18th and H.E. Jaime Alemán, Ambassador of Panama to the United States, will be the Keynote Speaker.

We avail of the opportunity to thank sponsors for their generous support. Please review the website for additional information. Should you have any questions you may contact Amb. Juan B. Sosa at (713) 426-0554. We look forward to see you in Panama Week 2010.

Best regards,

Amb. Juan B. Sosa President, USPA (USA)
Amb. Roberto Alfaro President, USPA (Panama)

Nov 1 - 6: Panama Week in Hanoi

2010-11-03T18:01:00.000-07:00

The first Panama cultural week is being held in Hanoi from November 1 to 6 to celebrate 35 years of diplomatic relations between the two countries.

The event includes a photo exhibition titled “Discovering Panama” and the Panamanian Film Week will be held at National Library of Vietnam and Hanoi Cinematheque respectively.
During the Panamanian Film Week, “The Fists of A Nation” (Los Punos de Una Nacion, 2005, 73 min) and “Blood is Blood” (Sangre es Sangre, 2008, 25 min) will be screened on November 5 &6, 2010.
The “Panama Week” organized by the Embassy of the Republic of Panama also marks the capital’s 1,000th anniversary.

http://en.baomoi.com/Info/1st-Panama-cultural-week-in-Hanoi/11/78088.epi

From Panama Embassy:The “Panama Week” organized by the Embassy of the Republic of Panama will take place in the first week of November to celebrate 35 years of diplomatic relations. During the “Panama Week”, the exhibition of Photography and Craft titled “Discovering Panama” and the Panamanian Film Week will be held at National Library of Vietnam and Hanoi Cinematheque respectively.
Schedule:Exhibition of Photography and Craft: Discoverying PanamaTime: 01 – 06 Nov 2010, 8 am – 8 pmNational Library of Vietnam31 Trang Thi, Hoan Kiem, Hanoi
Panamanian Documentaries Time: 05 – 06 Nov 2010

Hanoi Cinematheque 22A Hai Ba Trung, Hoan Kiem, Hanoi
During the Panamanian Film Week, “The Fists of A Nation” and “Blood is Blood” will be screened.
Film: The Fists of a Nation Screening time: 05 – 06 Nov 2010, 7.30 pm

Film: Blood is Blood Screening time: 05 – 06 Nov 2010, 9 pm

http://hanoigrapevine.com/2010/10/panama-week/

Panama and Taiwan start talks for signing of Double Taxation Agreement

2010-11-01T01:08:00.000-07:00

Photo: With this meeting the Panamanian delegation, lead by the president, Ricardo Martinelli concludes its Asian tour. Photo / Courtesy of the Presidency

During a meeting with Panamanian businessmen and Taiwan, the president, Ricardo Martinelli, announced that the two countries begin talks on signing an double taxation agreement.

"Panama respects foreign investment and we are open to receive new investments," said Martinelli to Taiwanese businessmen who mentioned that with the signing of the Free Trade Agreement, Taiwan companies have invested heavily in developing the service transportation, technology, among others.

On another topic, Martinelli presented to entrepreneurs in Taiwan's competitive advantages offered by the country to foreign investment.

"In Panama they have opportunities to invest in agriculture, real estate, among other areas, where already several companies that have entered this Asian country," he said.

For its part, Taiwan's deputy foreign minister, Thomas Hou Ping-fu noted that Panama is Taiwan's staunchest ally in Central America that have maintained diplomatic relations for more than a century and that these bilateral ties have increased after the entry into force the Free Trade Agreement between both countries, as Taiwanese investments in Panama have increased by over 215 million Dollars.

More on Taiwan-Panama business
http://aprochipa.blogspot.com/search/label/negocios

Are offshore structures for you?

2010-10-31T08:34:00.000-07:00

Private Interest Foundations

The private foundations were born some years ago in Panama , in order to give the offshore users a new approach, a more civil and familiar approach.

They have the same Tax and Registry principles, but with a civil oriented system.

The foundations can sign and negotiate commercial contracts eventually and they are not subject to income tax when the income was produced outside Panamanian territory.

The Panama Private Foundation (hereinafter known as PIF) has its origins in the Law 25 of 1995, which in turn was inspired in the PGR or better known as the “Liechtenstein Persons and Company Act”, which contains one of the first references to the private non profit foundations. In Panama, this and the most recent innovations in the Anglo-Saxon Trust enabled the creation of the Private Foundation utilizing the best features and characteristics of both worlds.

A PIF is a legal entity that can be created by either a natural person or a corporation that later transfers part or all of his/her assets to the Private Foundation so they can be managed and protected in favour of the Beneficiaries.

Among the features of the Panamanian Private Foundations we find:

Quick registration 24-72 hours;
They provide a fiduciary structure for the orderly transfer and disposition of assets to beneficiaries upon the death of the Founder, keeping control of the assets during lifetime;
They may be established to have effects from the date of their constitution or after the death of the Founder; According to Law 25 of 1995, inheritance laws that apply in the domicile of the Founder or the Beneficiaries, shall not be effective against the Foundations assets nor may these laws affect the validity or performance of the Foundations objectives;
Foundations are established to carry the specifics goals set out in the Foundation Charter and may additionally undertake sporadic commercial activities, exercise rights pertaining to their holdings, own property, contract obligations and take part in administrative or judicial proceedings.
A Private Interest Foundation should be established with a patrimony destined to fulfill its objectives, which shall be no less than US$10,000.00.
Said patrimony may be increased by additional contributions of the Founder or third parties and does not have to paid in part or in full before the incorporation;
The assets of the Foundation become legally independent and do not form a part of the private estate of the Founder. Such assets are not sizeable and may not be subject to any precautory action or measure, unless such action or measure pertains to obligations incurred or damages arising from the fulfillment of the Foundations objectives.

Notwithstanding the creditors of the Founder or of a third party shall have the right to contest the contribution or transfer of assets to a foundation when such transfer constitutes an act in fraud of the creditors. The rights and actions of such creditors shall lapse at the expiration of three (3) years, counted from the date of the contribution or transfer of the assets to the foundation was done.

According to article 27 of Law 25 of 1995, Private Interest Foundations are exempt from payment of any taxes, contributions, duties, liens or assessments of any kind arising from the acts of constitution, amendment or extinction of the same, as well as acts of transfer or encumbrance of the Foundations assets and the income arising thereof, when related to:

Assets located abroad;
Money deposited by natural or juridical persons whose income does not derive from a Panamanian source is not taxable in Panama for any reason;
Shares or securities of any kind issued by corporations which income is not derived from a Panama source, or which are not taxable for any reason, even when such shares or securities are deposited in the Republic of Panama.
The transfer of unmovable property, titles, certificates of deposits, assets, funds, securities or shares carried out by reason of the fulfillment of the objectives of the foundation or the termination of the same, in favor of relatives within the first degree of consanguinity or the spouse of the Founder shall also be exempted from all Panama taxes.

Among the most important uses of the Panamanian Private Foundations we find:

Family and family office support
For Tax purposes
For the protection and management of assets
For educational purposes Testamentary purposes
For life annuity purposes
For charitable purposes
To receive and manage capital and titles
For the purpose of serving as guarantee or collateral
For the management of insurance.

We must comment that several or all uses mentioned above can be given to a particular PIF, there are no restrictions as to the objects or uses one PIF can be given. For example, one PIF can be created to protect assets, but also with a testamentary use or in any case, with all the above-mentioned uses. However, a PIF cannot engage in commercial or for profit activities as a day-to-day activity.

Panama

Panamanian offshore corporations are an easy vehicle to negotiate and close deals.
The simple and yet formal provisions of the Law, render the users to trust the system. The amendments necessary to close one deal are quickly done by registering them at the Public Registry Office, and since it is a government institution, the certificates and Apostilles are easy to obtain in order to sign a contract in a short period of time.

Directors of the companies do not necessarily have to be shareholders and vice versa. Panamanian companies are not bound to issue shares. Powers of Attorneys may or may not be registered in the Public Registry Office.

For over seventy five (75) years the Panamanian offshore corporations has been recognized worldwide as a suitable offshore vehicle and with the proper legal advice can be utilized in a diversity of structures to conduct international business, asset protection, and estate planning, among others.

Among the most important features of the Panamanian offshore corporations we can mention:

Quick registration in 24 to 48 hours.
The Panamanian offshore corporations can be registered notwithstanding the nationality of its directors or shareholders.
The income produced by a Panamanian offshore corporations outside the territory of the Republic of Panama is exempt of paying Income Tax in Panama.
The capital of the company does not have to be paid partially or fully at the moment of incorporation.
There is no obligation to file annual reports, financial statements or sworn income declarations, always that the company does not generate Panamanian sourced income.
Legal entities of any country can be appointed as directors, officer or shareholder.
There is no obligation to undertake annual meetings of the Board of Directors or Shareholders.
The directors and shareholders can meet in person, by Proxy, phone or by any other electronic means.
Three (3) directors are required, either physical persons or legal entities of any nationality.
The officers (usually a President, a Secretary and a Treasurer) not necessarily have to be directors and one person can occupy one or more or all offices.
The officers can be either physical persons or legal entities.
The shares can be issued in nominative or bearer form.
In any case, the name of the shareholder is not required to be registered at the Public Registry, so confidentiality is ensured.
The corporate books can be kept in any part of the world and can be managed by electronic files or program.
A Panamanian offshore corporations can do transactions and own assets in any part of the world, without having the obligation to maintain assets in the Republic of Panama.
The Panamanian offshore corporations can undertake any type of legal business activity in any part of the world.
The use of the Apostille is permitted.

Among the most important uses of the Panamanian offshore corporations we can find:

As a holding entity for shares, bonds, bank accounts, term deposits, investment projects or any other financial or commercial title.
Owner of shares in other companies, be them Panamanian or foreign.
Owner of property, such as apartments, lots, houses or any other asset, be them personal or real estate.
Manager or promoter of international commercial transactions.
International lease of aircraft, vehicles, machinery, vessels and others.
Instrument to receive and deliver loans in cash or commissions for products and services.
Marketing and promotion of products and services.
Other financial or commercial activities.

Belize

Belize 's modern and up-to-date offshore legislation provides maximum flexibility in global asset protection and tax and investment planning.

Particular features of the Belize international business companies are:

Registration is quite fast as you can have your company registered in one (1) hour.
Conducts its trading and business outside of Belize.
Tax exempt from, the payment of all forms of local taxation, the payment of stamp duties for transactions in respect of its shares and debt obligations or other securities.
Absence of exchange control.
Disclosure of the beneficial owner(s) is not required;
share register may be inspected only by a shareholder;
nominee shareholders and bearer shares are permitted;
assets are protected from confiscation or expropriation orders or similar actions by foreign governments.
Security and Confidentiality.
Only the Memorandum and Articles of Association are required for public records;
the registration and deregistration of Registers of Directors, Members, and Mortgages and Charges is optional.
No minimum capital is required.
No audit of accounts is required.
No filing of annual returns is required.
Only one shareholder and one director are required, who may be a legal entity.
No company secretary is required.
No annual general meeting is required, meetings may be held outside of Belize , and attendants may be present therein by telephone or other electronic means.
Shares may be issued with or without par value and in any currency.
Re-domiciliation into and out of Belize is permitted, registration in any foreign language is permitted.

Additional reporting compliance may be required from entities doing business with local clients inside said jurisdictions, as well as from shareholders and/or beneficiaries resident in some jurisdiction. Advice from a tax attorney and accountant in your country of citizenship and residence must be sought before using offshore entities.

Panama heading for target of 12 Double Taxation Agreements

2010-08-31T17:54:00.000-07:00

Panama will negotiate with Singapore next week the 12th double taxation agreement (DTA) required to exit the gray list of the Organization for Economic Cooperation and Development (OECD).

On Aug 18 negotiations were completed for a double taxation avoidance agreement with South Korea.

A double taxation agreement with Mexico has been ratified by the Panama legislature. Other treaties have been signed with Barbados, and negotiations have been closed with France, Italy, Belgium, Spain, Netherlands, Qatar, Luxembourg and Portugal.

http://www.asamblea.gob.pa/actualidad/proyectos/2010/2010_P_156.pdf Mexico-Panama Agreement for Double Taxation Avoidance and Tax Evasion Prevention

In the last 6 months, bills have been entered into the Panama legislature to ratify Bilateral Investment Treaties for the protection of investments with Italy, Belgium, Qatar, and Luxembourg granting national treatment to investments from those countries.

http://www.asamblea.gob.pa/actualidad/proyectos/2010/2010_P_153.pdf Qatar
http://www.asamblea.gob.pa/actualidad/proyectos/2010/2010_P_146.pdf Italy
http://www.asamblea.gob.pa/actualidad/proyectos/2010/2010_P_148.pdf Belgium-Luxembourg
http://www.asamblea.gob.pa/actualidad/proyectos/2010/2010_P_147.pdf Finland

A bill to ratify a Mutual Legal Assistance Treaty with Russia has been submitted. This Agreement provides that:
Bank secrecy can not be used as a basis for denying legal assistance.
3. The Parties may not refuse a request for legal assistance only because it is considered that the crime also involves tax matters.
http://www.asamblea.gob.pa/actualidad/proyectos/2010/2010_P_150.pdf Russia MLAT Bill

Panama Property Tax Lawyer

2010-08-25T16:12:00.000-07:00

You do not need a lawyer to do your property tax. If you are computer proficient and can follow some Spanish with Google translate, you can go to www.dgi.gob.pa and:

- get a NIT password to see your annual property tax statement online and print tax certificates online,

- download the eTax 2010 software from which can help you estimate payable capital gains and property transfer taxes in case of a sale.

Alternatively, CPAs are better at estimating taxes than lawyers, who can be of help if a claim against the Ministry is involved. Property tax rules change a bit every year. Some rules are posted at:
http://mypanamalawyer.blogspot.com/search/label/property%20tax

--- On Tue, 7/6/10, maukapete <maukapete@yahoo. com> wrote:

From: maukapete <maukapete@yahoo. com>
Subject: Americans In Panama - Panama Property Tax Lawyer
Date: Tuesday, July 6, 2010, 11:01 AM

Does anyone know a Panamanian lawyer named N who does property taxes for homes? If no one knows Lic. N, does anyone know a Panamanian lawyer who does property taxes without jerking me around? Pete Peterson

Panama-France Treaty protects Panama corporations

2010-08-23T13:42:00.000-07:00

A little-known treaty, called the Franco-Panamanian Treaty of Establishment from 1953, provides that investments in each of the signatory countries by investors of the other state, are subject to equal treatment. A Panama corporation with one Panamanian as shareholder was therefore exempt from a punitive anti-tax haven 3% tax levied on French properties owned by non-residents.

Friendship treaties can also serve as tax avoidance tools when double taxation treaties are absent.

France: Non-Discrimination and the Treaty of Establishment with Panama

by Stefan N. Frommel, London

Conseil d'Etat: Resources Management Corporation S.A., 16 December, 1991

A. The facts

Resources Management Corporation was a company limited by shares incorporated in Panama. The company had issued 5,000 shares in bearer form and only two of the shareholders were known to the French tax authorities: a Mr. Arias and a Mr. Suarez, each holding one share. The remaining 4,998 shares were in the hands of shareholders who had not been identified.

Resources Management owned a villa in Eze-sur-Mer, on the Còte d'Azur; it had no other property or other activities in France. The villa was – the whole year round an free of charge – atthe disposal of Mr. Chofaras, a Greek national, who lived in Paris, at avenue de l'Are de Triomphe.

Resources Management had never filed a tax return. The tax authorities assessed the company to corporation tax for the years 1974 to 1977. For 1974 to 1976 the tax was assessed on the basis of the real rental value of the property. For 1977 it was assessed on three times the real rental value, according to article 209A, which came into force on 1 January, 1977.

Only the assessment for 1977 is relevant for our purposes.

B. The Conclusions of the Commissaire du Gouvernement

In his conclusions, M. Fouquet made the observations summarized below and requested the court to discharge the assessment for 1977.

(a) The administration argued that tax treaties traditionally allocate the right to tax income from immovable property to the Contracting State in which such property is situated. M. Fouquet observed:

The court had previously decided (in Le Beau Logis and Quadriga) that the non-discrimination clauses in the tax ([...])
As a result of these decisions the Government has asked Parliament to abolish Article 209A and replace it with the 3 percent annual tax on the market value of French real property (article 990D of the General Tax Code).
Article 7 of the treaty with Panama, being similar (analogue) to the non-discrimination clauses found in the vast majority of tax treaties, should be given the same effect.
It was not contested that “nationals”, the term used in the treaty, applied not only to individuals but also to legal persons, according to Royal, which he cited.

(b) The administration argued that article 7 of the treaty with Panama did not refer to “corporation tax”. M. Fouquet observed:

The wording of article 7 (“duties, levies, taxes, or contributions, of whatever denomination”) was sufficiently wide to include corporation tax.
Moreover, it was no longer relevant, since Nicolo, that the law of 29 December 1976 (at the origin of article 209A) was subsequent to the treaty.

(c ) The administration argued that the treaty with Panama was not valid because it had not been ratified by the president of the Republic, M. Fouquet replied:

According to the decision in Navigator (1965), the treaty had been properly introduced into French law by a decree of the President followed by publication in the Official Journal.

(d) To conclude, M. Fouquet mentioned Société Panagest, where the court,following his own submissions, had applied article 209A to two Panamanian companies: “Lack of sufficient time”, he said, had prevented him from discovering earlier the existence of the treaty with Panama.

Following Carboline-Europe (1986), he added, “the equality-of-treatment clause in a treaty is of [concern to] public policy (ordre public) and must be applied by the court ex officio, [even if it has not been pleaded by the taxpayer].”

C. The Decision

The relevant part of the decision reads as follows:

“As far as the year 1977 is concerned:

“Whereas, according to article 209A of the General Tax Code, in force at the time: 'If a legal person (personne morale) whose seat (siège) is situated outside France, has at its disposal one or more real properties or grants the use of such property either gratuitously or for a rent inferior to the real rental value, it is subject to the corporation tax on a basis which cannot be lower than three times the real rental value of the said property'; that for 1977 the petitioner has been subject to corporation tax, according to that provision, on a base equal to three times the rental value of the aforementioned villa; that, however, petitioner invokes the provisions of article 7 of the treaty of establishment between France and Panama of 10 July, 1953, published by virtue of decree 58-438 of 12 April, 1958 in the Official Journal of 23 April, 1958, according to ([...]) within the territory of the other Party, to any other or higher duties, levies, taxes, or contributions, of whatever denomination than those which are imposed on the nationals'; that these provisions form an obstacle to the fixed rate taxation (taxation forfaitaire) foreseen by article 209A of the General Tax Code; that the company limited by shares Resources Management Corporation is, accordingly, entitled to demand the discharge of the assessment to corporation tax to which it was subjected for the year 1977.

“[The court] decides: …

“The company limited by shares Resources Management Corporation is discharged from the assessment to corporation tax and ancillary penalties to which it was subjected for the year 1977.”

VI. A Point That Was Not Raised: Abuse of Rights

A word of caution for anyone planning to use Panamanian companies to hold French real estate: beware of the doctrine of abus de droit. It was not raised in Resources Management, but might well be invoked in other cases.

In French tax law, the expression abus de droit (abuse of rights) refers to unacceptable tax avoidance. Outside the tax field it has a different meaning and refers to a doctrine that has been developed by the French courts and become a “general principle of law”: a person acts unlawfully, or he made use of a right with the intention or purpose of causing harm to another person. Transposed to taxation matters, the doctrine means this: although a taxpayer has a right to arrange his affairs in any way which is legal, he abuses that right if he exercises it solely to avoid tax.

VII. Are Panamanian Companies Protected from the 3 Percent Annual Tax on the Market Value of French Real Property?

A short note, signed with the initials “O.F.” (Olivier Fouquet?) is appended to the report of Resources Management in the Revue des Sociétés. ([...]) … times the rental value of French real property) appeared to be “transposable” to the “new” 3 percent annual tax on the market value of the property (imposed by article 990D which replaced article 209A) because the Cour de Cassation had also decided (in Société Royal) that a non-discrimination clause in a “bilateral treaty” was an obstacle to application of this tax.

This analysis is correct and is shared by another commentator, M. Phillipe Derouin.

Comparing Société Royal with Resources Management it is apparent that both decision have three fundamental points in common:

A tax that is discriminatory because it applies only to companies which have their seat outside France (both taxes are closely related: one replaced the other).
A treaty with a non-discrimination clause (both clauses have similar wording).
A constitutional principle of supremacy of treaties over domestic legislation (both taxes were enacted after conclusion of the treaties).

In this circumstances, unless the Constitution is amended or the treaty is renegotiated, it is doubtful that the 3 percent tax imposed by article 990D of the General Tax Code could ever apply to Panamanian companies.

Full text in Tax Planning International Review (1992) . Extract posted with thanks to Alexandra Stoffl (University of Vienna, B.Sc., LLM)

US citizens face penalties when failing to report their offshore accounts

2010-08-11T10:34:00.000-07:00

Kevin Mullin: Ramifications of U.S. Crackdown on Foreign Tax Havens
By Kevin Mullin, JD, CPA, LLM (Tax)

Compelled by the current recession to raise revenues from all quarters and emboldened by reports of thousands of U.S. taxpayers with unreported foreign accounts, the current administration is moving to crack down on rogue U.S. taxpayers with investments stashed abroad.

While the UBS scandal has attracted the most publicity, leading to the discovery of thousands of unreported accounts held by Americans, Switzerland is not the only focus. The Internal Revenue Service recently announced the opening of its first criminal investigation office in Panama and the agency is targeting far-flung jurisdictions which permit bank-secrecy, as well as tax havens around the world.

This has a direct impact on the thousands of U.S. taxpayers investing in real estate outside of the U.S., who often use a foreign bank, financial account, corporation, partnership or trust to take title to the property. They provide a convenient cash management account from which to make such investments or meet expenses of ownership. But they don't necessarily shield owners from IRS scrutiny, as the U.S. account-holders of UBS have found out.

Most U.S. taxpayers with international investments are likely aware that they are required to declare income earned from all sources located anywhere in the world, but many are not aware of the extensive reporting requirements on foreign accounts and investments, regardless of whether they generate any taxable income. Nor are many investors aware of the draconian penalties that attend their non-compliance.

Besides the obvious obligation to report income, there are extensive requirements for the owners (or constructive owners) of such accounts to report transfers and ownership of foreign corporations and trusts, as well as ownership or signature authority over foreign financial accounts.

While many of these reporting requirements have been on the books for years, the focus of the U.S. on enforcing them has been, until recently, pretty half-hearted. But now the IRS is pursuing this arena with vigor.

The administration's efforts culminated earlier this year with amnesty program for U.S, taxpayers with unreported income from foreign accounts--an admission that providing amnesty might bring new sources of revenue, which would otherwise simply burrow deeper underground. The amnesty program allowed qualified U.S. taxpayers with unreported income from foreign accounts to generally be relieved of criminal sanctions, although they would still be subject to back taxes, interest and civil penalties.

The announcement of the amnesty program, which ended on Oct. 15, triggered an avalanche of disclosures that have overwhelmed IRS staff. In its wake, a plethora of proposed legislation has been introduced aimed squarely at bringing a spotlight to the offshore arena.

Hereafter, the gloves are off and U.S. taxpayers who are discovered to have unreported income from foreign accounts should not expect a conciliatory attitude on the part of the IRS. For those U.S. taxpayers with foreign-source income and financial accounts, the requirement for obtaining competent legal counsel and accounting advice could not be more critical to their overall tax compliance efforts.

The following is a summary of the reporting requirements and potential civil penalties that could apply to a taxpayer, depending on their particular facts and circumstances. Note that serious criminal penalties with financial, as well, as incarceration possibilities are also possible for willful infractions. And if the IRS discovers non-compliance prior to the taxpayer providing information on a voluntary basis, the opportunity of pleading ignorance or inadvertence will likely fall on deaf ears and the likelihood of a criminal investigation increases.

A short summary of some of the compliance requirements:

A penalty for failing to file the Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts, commonly known as an �FBAR�). U.S. citizens, residents and certain other persons must annually report their direct or indirect financial interest in, or signature authority (or other authority that is comparable to signature authority) over a financial account that is maintained with a financial institution located in a foreign country if, for any calendar year, the aggregate value of all foreign accounts exceeded $10,000 at any time during the year. Generally, the civil penalty for willfully failing to file an FBAR can be as high as the greater of $100,000 or 50 percent of the total balance of the foreign account. Non-willful violations are subject to a civil penalty of not more than $10,000 for each account and for each year that the account is unreported.
A penalty for failing to file Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. Taxpayers must also report various transactions involving foreign trusts, including creation of a foreign trust by a U.S. person, transfers of property from a U.S. person to a foreign trust and receipt of distributions from foreign trusts. This return also reports the receipt by U.S. persons of gifts from foreign entities. The penalty for failing to file each one of these information returns, or for filing an incomplete return, is 35 percent of the gross reportable amount, except for returns reporting gifts, where the penalty is five percent of the gift per month, up to a maximum penalty of 25 percent of the gift.
A penalty for failing to file Form 3520-A, Information Return of Foreign Trust With a U.S. Owner. Taxpayers must also report ownership interests in foreign trusts, by U.S. persons with various interests in and powers over those trusts under section 6048(b).The penalty for failing to file each one of these information returns or for filing an incomplete return, is five percent of the gross value of trust assets determined to be owned by the U.S. person.
A penalty for failing to file Form 5471, Information Return of U.S. Person with Respect to Certain Foreign Corporations. Certain U.S. persons who are officers, directors or shareholders in certain foreign corporations (including International Business Corporations) are required to report information. The penalty for failing to file each one of these information returns is $10,000, with an additional $10,000 added for each month the failure continues beginning 90 days after the taxpayer is notified of the delinquency, up to a maximum of $50,000 per return.
A penalty for failing to file Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation. Taxpayers are required to report transfers of property to foreign corporations and other information. The penalty for failing to file each one of these information returns is ten percent of the value of the property transferred, up to a maximum of $100,000 per return, with no limit if the failure to report the transfer was intentional.
A penalty for failing to file Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships. U.S. persons with certain interests in foreign partnerships use this form to report interests in and transactions of the foreign partnerships, transfers of property to the foreign partnerships, and acquisitions, dispositions and changes in foreign partnership interests. Penalties include $10,000 for failure to file each return, with an additional $10,000 added for each month the failure continues beginning 90 days after the taxpayer is notified of the delinquency, up to a maximum of $50,000 per return, and 10 percent of the value of any transferred property that is not reported, subject to a $100,000 limit.

Kevin Mullin is a tax attorney with more than 20 years experience in international tax and estate planning services. With offices in Denver, Co., and McLean, Va., he can be reached at http://www.intl-taxlaw.com/. He also maintains representative offices in Latin America and the Middle East to support his professional and client relationships globally.

EB-5 visa still attractive for the millionaires moving to the US

2010-08-09T09:30:00.000-07:00

For affluent immigrants unwilling to deal with long waiting lists, the EB-5 Visa program provides a fast track for immigrating to the U.S. The basic requirements are to set up a business for a minimum of $1 million (or $500,000 in “Regional Centers” in rural areas or urban regions with high unemployment rates) which provides 10 jobs by investing here.

For citizens in countries with political unrest such as Venezuela and Mexico and higher tax rates such as U.K., the EB-5 is a useful alternative. Advantages include:

10,000 green cards reserved each year for the EB-5 regional center program
No minimum education requirement
No business or management experience requirement
No language requirement
No excessive waiting periods or quota backlogs
No sponsor needed
Investment capital can come from any lawful source
Investors not required to manage their investment on a daily basis so they may pursue other professional and personal ventures inside or outside of US
Satisfy job creation requirements by counting both direct and indirect jobs

June 11, 2010, 8:24 AM ET
Immigrant Investors, An Underserved Market

Finding new clients is a challenge for all financial advisers. But most advisers are overlooking an untapped and growing client base: wealthy foreign investors seeking to gain permanent residency in the U.S.
....
EB-5 green cards also allow affluent foreign investors (and their family members) to work in the U.S. in any capacity, go to school, or retire here.
....
Each year, 10,000 visas are available for EB-5 investors looking to come to America.
According to the U.S. State Department, the number of so-called “investor green cards” issued nearly tripled to 4,218 in the fiscal year 2009 ended September 30, compared to just 1,443 EB-5 visas issued in fiscal year 2008.

TAX PLANNING FOR EB-5 INVESTORS BECOMING PERMANENT RESIDENTS

With proper advance planning, EB-5 Program applicants can undertake measures to minimize their U.S. FIT and FTT exposure. Thus, applicants for the EB-5 Program should consider tax planning prior to becoming U.S. residents, that is, while they are still non-residents. This tax planning can be formulated so as to take effect only when the applicant knows that he or she is eligible for the EB-5 Green Card, but the urgency for the applicant to undertake this FIT and FTT planning becomes more critical as the EB-5 application proceeds towards permanent residency, as depicted below:

TIME LINE FOR EB-5 PROCESSING AND TAX PLANNING
The "EB-5" Investor Visa Program provides foreign nationals an innovative and flexible path to permanent residency in the U.S. (Green Card) for themselves, their spouses and their children less than 21 years of age.
The EB-5 Program permits an applicant to invest a minimum of $500,000 in a U.S. Government designated Regional Center in the U.S. The Regional Centers are designed to allow pooled investments to create jobs in targeted high-unemployment areas in the U.S. Thus, the qualified applicant can obtain a Green Card without having to create their own business in the U.S. or to even emigrate to the U.S. until the Green Card has been issued. A Green Card gives the holder the right to live and work anywhere in the US.

EB-5 Visa Program Process
◆ Step 1 - The qualified applicant files form I-526, a petition requesting the U.S. Citizenship and Immigration Services to certify the applicant and the investment as eligible for the EB-5 Program.
◆ Step 2 - Upon approval of the I-526 petition, the applicant files an immigrant visa application and is interviewed at the Embassy in the applicant's home country. Upon approval of the application, the applicant is issued an immigrant visa to the United States. A conditional Green Card is issued to the applicant shortly after his/her arrival in the United States.
◆ Step 3 - After two years, the applicant must file to remove the "condition" from the Green Card using form I-829. At this time, the Regional Center will provide proof of job creation.

Tax & Estate Planning for EB-5 Program Applicants
Citizens and permanent residents of the U.S. are subject to federal income tax (FIT) on their worldwide income and to gift and estate tax (FTT) on their assets located anywhere in the world, while nonresidents of the U.S. are taxed only on their income and assets arising or located in the U.S.

MDH specializes in international income and estate tax planning for EB-5 Program applicants, and we work with nationally-recognized immigration law firms in the U.S. to assure a seamless transition for applicants becoming permanent residents of the United States. Some of our planning techniques include corporate reorganizations, foreign and U.S. trusts, partnerships, limited liability companies, life insurance, annuities, and gifting programs. We also work with our client's advisors in his or her home country to assure that the client receives complete and comprehensive tax and business planning services, and that the client and their loved ones maintain the standard of living to which they are accustomed.

Kevin J. Mullin, J.D., C.P.A., has been practicing law for over 15 years with a focus on advising foreign investors on their U.S. real estate investments and international business and tax planning. Mr. Mullin has offices in Denver, Colo., and Washington, D.C. http://www.intl-taxlaw.com/ . He also maintains representative offices in Latin America and the Middle East to support his professional and client relationships globally.

Swiss lawyer indicted in US after advising HSBC client

2010-08-04T16:53:00.000-07:00

Felix Mathis, a Zurich-based lawyer at Froriep Renggli LLP, allegedly helped Dr. Andrew Silva, of Virginia, conceal from U.S. authorities foreign bank accounts at HSBC, according to an indictment filed last week at federal court in Alexandria.

A warrant has been issued for Mathis' arrest, but he is not yet in U.S. custody.

The pair used a Liechtenstein trust called Pentruvoi Trust to hide the existence of the Swiss accounts, according to the indictment.

Dr. Silva admitted his role in the transaction and received a sentence of 2 years probation. He admitted not having reported funds held at HSBC Holdings Plc. An HSBC spokeswoman declined to comment. More in http://www.businessweek.com/news/2010-06-15/surgeon-avoids-prison-for-plotting-to-hide-hsbc-cash-update1-.html

HSBC claims it does not condone or assist tax evasion http://in.reuters.com/article/idINTRE66E74S20100715However, its website advertises the benefits of offshore banking http://www.offshore.hsbc.com/1/2/international/offshore-banking and its potential tax benefits http://www.offshore.hsbc.com/1/2/international/offshore-banking/tax-benefits

Copy of the indictment in USA v Felix M. Mathis, No.1:10-CR-260 in the U.S. District Court in the Eastern District of Virginia can be read at http://www.scribd.com/doc/34434671/USA-vs-Felix-Mathis

What foreign investors should know when buying property in the US

2010-08-02T21:32:00.000-07:00

Property managers with foreign investor clients (what you should know).
By Mullin, Kevin J.
Publication: Journal of Property Management
Date: Wednesday, July 1 1998

Unless a tax treaty exists between the U.S. and a specific country, foreign owners, including estates, corporations, nonresident aliens, and partnerships, pay a flat 30 percent withholding tax on the rents produced by their U.S. real estate investments. This tax applies unless foreigners' investments are connected with a U.S. trade or business or the foreign owner has made an election with the Internal Revenue Service to be taxed on a net basis. (Having rental income taxed on a net basis after deductions for costs or operations, maintenance, and carrying charges usually results in a lower overall tax for the foreign owner.) On the other hand, U.S. citizens and residents, both individuals and corporations, are not subject to this withholding tax.

This 30-percent withholding tax is calculated on the gross amount of the rents generated by the property without allowable deductions for interest, depreciation, repairs, management and association fees, insurance, real estate taxes, or other expenses of owning and operating the property.

Managers as Agents

Since the IRS has no jurisdiction to collect this tax against a person residing in a foreign jurisdiction, the law generally designates the U.S. person who has the last contact with the money before it leaves the U.S. as a "withholding agent." The withholding agent is charged with the responsibility for paying over the 30-percent withholding directly to the IRS. Failure to do so can result in the withholding agent being personally liable for payment of the tax, plus interest and penalties.

For rental real estate, the withholding agent is typically the property management company that collects the rent from the tenants, pays the expenses of owning and operating the property, and remits the balance to the owner. Unfortunately, the property management company is often blissfully ignorant of the implications and potential for liability that the designation of withholding agent brings under law.

Avoiding the Withholding Tax: Foreign Owners

Because of this potential tax liability, the property manager needs to know with certainty whether its foreign client is subject to the withholding tax or whether the client is exempt from withholding. For the foreign investor, there are two ways to qualify for an exemption from the withholding tax and, instead, pay its fair share of income tax on a net basis after deductions.

Trade or Business. The first way a foreign person can achieve exemption from the withholding tax and be taxed on a net basis is to qualify its real estate operations as being "engaged in a U.S. trade or business." Unfortunately, there is no hard and fast rule for determining when a foreign investor's real estate operations rise to the level of a U.S. trade or business. Instead, the legal test is based on the nature and extent of the foreign investor's activities in the U.S., which leaves the foreign investor looking to various court cases for guidance.

Resolution of one's status as not being engaged in a U.S. trade or business (and thus, subject to withholding taxes) under these cases can be fairly determined if the foreign person's activities are very limited, such as owning one rental property leased on a triple-net basis. Moreover, it is fairly dear from the court cases that a foreign investor will be considered to be engaged in a U.S. trade or business if the foreign investor's activities are considerable, regular, and continuous with regard to his or her properties. For example, owning several properties and being involved directly (or through an agent) in lease negotiations, maintenance and repairs, collection of rents, payment of operating expenses, and performing record keeping, would almost certainly qualify a foreign owner for this classification. However, should a foreign investor's activities fall within these two extremes, it may be difficult to gauge the character of the investment, which leaves the foreign owner and the property manager to guess.

Net Election. Having to guess how a court will decide on the question of being engaged in a U.S. trade or business can be a hazardous way to operate real estate for both the foreign owner and the property manager. By way of relief, the Internal Revenue Code does allow a foreign corporation or nonresident alien individual to make an affirmative election to be taxed as being engaged in a U.S. trade or business, which takes the uncertainty out of the process. To qualify for the election, the foreign corporation or nonresident alien individual must derive revenue from the U.S. investment. Because the foreign person will not otherwise be able to qualify for the election, investments in nonproductive properties, such as raw land, should be leased to generate some revenue, even if the use is merely interim or temporary. In the case of a nonresident alien individual, the real estate investment must be held for the production of income.

To make the election, the foreign owner merely files a statement with his or her federal tax return that identifies that an election is being made along with a schedule of all the taxpayer's U.S. real properties, their locations, and a description of the improvements on the properties. This election is effective for all qualifying U.S. properties for all subsequent years and can only be revoked with the consent of the IRS.

The foreign investor who makes such an election also needs to file a Form 4224 annually with its property manager, which notifies the property manager
that the foreign owner is exempt from withholding tax for that tax year.

Avoiding Withholding Tax: Property Managers

That the foreign investor can elect to be taxed on a net basis is fine, but how is the property management company to know whether its principal is a foreign owner and whether the foreign client has made such an election to be taxed on a net basis, thus relieving the property manager of the withholding tax obligation? Guessing incorrectly whether one is a withholding agent or whether someone is a foreign owner or relying on a false verbal representation will not relieve a withholding agent from its obligations under the law. The best ways to avoid potential liability are:

* Assume that the property manager is a withholding agent in all cases until the IRS certification forms described below are received proving differently; and,

* Use the IRS certification forms with every client as part of the application process to systematize the approach to this issue. Completion of these forms will provide a "safe harbor" for the property manager even if it should later be determined that the owner falsified the forms and that withholding taxes should have been paid.

Property managers should become familiar with the following IRS certification forms, which need to be received from the client prior to any rental income from the property being realized. The best time to obtain such forms is at the time of management contract signing and thereafter as required.

Statement and Form 1078 (U.S. citizens and residents). U.S. citizens and residents should provide a statement in duplicate to the property manager that they are not foreign persons but citizens or residents of the U.S. No particular form is necessary for this statement, but it needs to be in writing and should be signed by the person making the statement. If the client is a person who is a resident alien of the U.S., the client can complete such a statement or can use Form 1078. No withholding is necessary from clients who complete either the statement or Form 1078, but the property manager is required to transmit the duplicate copy of the statement or Form 1078 to the IRS upon receipt.

W-8 and Form 4224 (foreign persons). Nonresident aliens and other foreign persons should complete and deliver to the property manager Form W-8, which certifies that the person is a foreign person. Completion of Form W-8 will trigger a withholding obligation on the property manager unless the foreign person also delivers a completed Form 4224. Form 4224 certifies that the income received by the property manager is exempt from withholding because it will be taxed on a net basis. Form 4224 must be filed with the withholding agent for each taxable year by the owner of the income and before payment of the income to which it applies. Failure to obtain a Form 4224 from a foreign person who claims exemption from withholding may result in denial of the exemption.

New Certification. Effective January 1, 1999, a new, simpler regime for certification will be implemented. These regulations will combine several existing forms used in connection with withholding including Form 4224 into a single, expanded Form W-8. While the new regulations should make it easier for property managers and their clients to comply, the basic system of withholding on income from real property is not being changed and must still be followed.

Other Issues for Foreigners

When acquiring U.S. real estate, there are good reasons why a foreign person should not take title to U.S. property in his or her own name, but rather should consider using an offshore-U.S. corporate structure. For example, a nonresident alien who takes title to the U.S. real estate in his or her individual name is exposed to the imposition of U.S. estate taxes, which can run as high as 55 percent on the fair market value of the property (determined as of the date of death) with very limited deductions. By comparison, U.S. estate taxes can dwarf the income tax consideration.

For foreign corporations that acquire income-producing U.S. real estate directly, a surtax, the 30-percent branch-profits tax, is imposed on top of the regular U.S. corporate income taxes. Accordingly, foreign corporations and nonresident alien individuals who currently own property in their own names should carefully consider restructuring their real estate investments into an offshore-U.S. corporate structure with the U.S. subsidiary owning the real estate directly. In this way, owners can avoid not only withholding taxes, but also U.S. estate and branch-profits taxes.

In spite of these issues, foreign persons often do take title to U.S. real estate in their own names. Thus, property managers should take precautions and seek competent professional advice so that their foreign clients' problems do not become their own.

This article is for general informational purposes only and no action should be taken or withheld based on the information supplied herein. This material is presented with the understanding that the author and the publisher do not render any legal, accounting, or other professional service. In no event will they be liable for any direct, indirect or consequential damages resulting from the use of this material.

Kevin J. Mullin, J.D., C.P.A., has been practicing law for over 15 years with a focus on advising foreign investors on their U.S. real estate investments and international business and tax planning. Mr. Mullin has offices in Denver, Colo., and Washington, D.C. www.intl-taxlaw.com . He also maintains representative offices in Latin America and the Middle East to support his professional and client relationships globally.

http://www.allbusiness.com/personal-finance/individual-taxes/690576-1.html

Panama Attorneys Advise Offshore Hedge Fund

2010-07-26T10:49:00.000-07:00

Panama Attorneys Advise European investors forming Private Investment Fund

Attorneys Lombardi Aguilar Group advised a group of European investors to file before the Panama securities regulators a notice of compliance with private investment fund provisions.

Panama City, Panama ---- Attorneys Lombardi Aguilar Group (http://www.laglex.com/) advised a group of European investors to file before the National Securities Commission (http://www.conaval.gob.pa/ - CONAVAL) of Panama a notice of compliance with private investment fund provisions. CONAVAL is the local securities regulator.

A private investmend fund is a type of financial investment company which generally exempt from most securities regulations and laws and are included under the label of "hedge funds". As a form of transparency for investors, Panama's Law Decree 1 of 1998 allows private investment funds to file their prospectus, background information about their managers and other corporate documents before the local CONAVAL regulator, as long as the company charter provides that: (1) the number of owners of quotas or investors is limited to a maximum of fifty (50) and any offers may be made only through private communications; (2) securities can only be offered to qualified purchases and with minimum investment amounts of USD100,000. The filing does not amount to a registration with the Commission and these funds are not subject to the supervision or scrutiny by the Commission.

The fund is an open-ended private investment fund based in and managed from the Republic of Panama. The main purpose of the Fund is to invest in privately-issued shares of international asset management companies and other similar companies (distributors and/or managers of funds, securities brokers, etc.) outside of Panama. According to corporate documents, the company has a capital is of 30 million euros. Its board of directors has Swiss members and two partners of Lombardi Aguilar Group serve as external directors.

Following the local Panama securities laws, the Fund is professionally-managed by another company incorporated in the Republic of Panama which has in place proper risk management, monitoring and internal control procedures. Such risk management process enables the management company to monitor and measure, at any time, the exposure of the investment positions and their contribution to the overall risk profile of the fund portfolio. The Panamanian regulators will require the Management Company to certify in each annual report of the Fund that the procedures and controls for monitoring the management and risk of the Fund are still in place as defined in the Prospectus filed with the Commission.

Current regulations allow the fund to:

a. maintain liquidity in different currencies;

b. issue fully-covered currency options;

c. place deposits with a bank licensed in a foreign jurisdiction;

d. invest in money market instruments or debt securities such as government or international bonds, U.S. Treasury bills, bank certificates of deposit, banker acceptances, floating rate notes, commercial papers, asset-backed securities and repurchase agreements;

e. enter into deliverable or non-deliverable currency forward contracts;

f. invest in privately-issued shares of international asset management companies and other similar companies (distributors and/or managers of funds, securities brokers, etc.).

Dr. Jorge Lombardi, a partner at Lombardi Aguilar Group commented that "we were recommended by colleagues in Switzerland to create and manage this fund, because of previous succesful experience". The legal expertise of the firm and its ability to provide counsel in several languages of the investors was crucial to its selection for this assignment. "My full knowledge of the Italian language was very useful as well as a tool to have a better and fluent communication with the clients", said Lombardi. "The beneficiaries of the fund are in Europe and our correspondents are in Lugano, Switzerland, and after a series of conversations they were convinced that Panama was the place to create it, and that our firm provided the security, confidentiality and confidence they needed". Lombardi is a graduate of Universidad Santa Maria la Antigua (LLB) and University of Paris (3eme cycle, DED).

About Lombardi Aguilar Group
Lombardi Aguilar Group is comprised of Lombardi Aguilar & Garcia and other professionals. The Group was 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, and Immigration Law as well as related litigation that may arise.

For more information, contact +507 340-6444, e-mail info (at) laglex.com, or see: Lombardi Aguilar Group http://www.laglex.com/

Keywords: Panama, offshore, hedge funds, private investment companies
http://www.prlog.org/10815190

###

Subscribe to press releases from Lombardi Aguilar Group:
RSS Feeds:

July 15-21 Panama Immigration Moratorium Fair

2010-07-14T22:24:00.000-07:00

The Panama Immigration Service is having on July 15 to 18 a fair at Atlapa. Illegal aliens being in Panama more than 2 years and not having applied for any visa category may apply for a 2-year special permit. The catch:
- Applicants must pay all fines for overstaying their original tourist visa at $50 a month
- Benefits of the amnesty for "Restricted nationalities" (Chinese, Cubans and others deemed "security risks" by the local government) are subject to approval by the "public force".

The requirements are listed in:
http://www.docstoc.com/docs/47048765/Moratoria-de-Migracion-en-Panama-2010

http://mensual.prensa.com/mensual/contenido/2010/07/07/hoy/panorama/2255412.asp
Realizarán jornada para legalizar a extranjeros
Rafael Luna Noguera
rluna @prensa.com

El Servicio Nacional de Migración efectuará entre el jueves 15 y el domingo 18 de julio un proceso extraordinario de legalización, con miras a regularizar la situación migratoria de unos 25 mil extranjeros.

La jornada se realizará entre las 6:00 a.m. y las 12:00 de medianoche en el Centro de Convenciones Atlapa, y podrán aplicar los extranjeros que tengan dos años o más de vivir en el país y no hayan empezado los trámites de legalización.

Migración informó que los extranjeros deberán presentar el pasaporte con los sellos que den constancia de su ingreso, y en caso de no tener pasaporte acudir con un testigo que, a su vez, deberá presentar el carné de residente o su cédula.

Tras cumplir con los trámites, y luego de que Migración apruebe cada caso por separado, se les expedirá a los extranjeros un permiso de permanencia provisional, válido por dos años.

Los casos de los ciudadanos chinos, indios, árabes, cubanos, haitianos y peruanos deberán ser aprobados por la fuerza pública.

Los extranjeros que estén en situación ilegal y no la regularicen en estas jornadas, tendrán un plazo máximo de cuatro meses para hacerlo o, de lo contrario, si son detenidos, serán deportados.

En Atlapa eran extensas las colas de extranjeros. LA PRENSA/Jihan Rodríguez

The immigration moratorium has been extended to July 21.

Pensionado faces 3 years in prison for failure to report offshore account

2010-07-08T14:42:00.001-07:00

A 75-year old US citizen faces a 5-year prison sentence for failure to report an offshore account at UBS Switzerland held under the name of a Panamanian corporation with nominee directors. The alleged tax loss to the U.S. was about $60,000.

If only he had hired a lawyer to file the TD F 90-22.1 FBAR form....

Ex-UBS Client Zaltsberg Admits Hiding $2.6 Million
July 01, 2010, 12:44 PM EDT
By David Voreacos

July 1 (Bloomberg) -- A former UBS AG client who played soccer on the Soviet national team pleaded guilty to failing to tell U.S. tax authorities about $2.6 million held in an offshore account.

Leonid Zaltsberg, 75, admitted that he didn't declare to the Internal Revenue Service a nominee Panamanian account set up with the help of a UBS banker and a Swiss lawyer he didn't identify in federal court in Newark, New Jersey.

"Did you seek advice from UBS employees on how to keep your foreign bank account hidden from the IRS?" U.S. District Judge Stanley Chesler asked Zaltsberg, who answered in the affirmative.
...

Soviet Athlete

Zaltsberg was a member of the Soviet Union's national soccer team in the 1960s and played in the World Cup, according to his daughter, Larisa Beyder, who attended the hearing. He came to the U.S. from Ukraine in 1989 and settled in Milltown, New Jersey, said his attorney, James DiPietro. Zaltsberg, who became a U.S. citizen, was a metals trader from 1990 to 2004, DiPietro said.

Zaltsberg, who is now an adviser to the Ukrainian national soccer team, suffers from bladder and prostate cancer, as well as depression, DiPietro said. He's also had open-heart surgery and four stents inserted, his daughter said.

Zaltsberg, speaking through an interpreter, admitted that he set up a UBS account in 1993, and that he set up the Panamanian corporation, Belton Capital Corp., in 2000. Zaltsberg said he created Belton to hide his assets from the IRS.

In pleading guilty to filing a false tax return in 2003, Zaltsberg also admitted that he failed to file Reports of Foreign Bank and Financial Accounts, or FBARs, from 2000 to 2007. He will pay $1.3 million, or a 50 percent FBAR on the highest amount of his account, DiPietro said. The tax loss to the U.S., the lawyer said, was about $60,000.

The case is United States of America v. Leonid Zaltsberg, U.S. District Court, District of New Jersey (Newark). http://www.justice.gov/usao/nj/press/press/files/pdffiles/Zaltsberg,%20Leonid%20Information.pdf

--Editors: John Pickering

Full text in http://www.businessweek.com/news/2010-07-01/ex-ubs-client-zaltsberg-admits-hiding-2-6-million.html

International Business Opportunities

2010-06-09T21:29:00.001-07:00

International remittance company for sale
An electronic payment company and an expert in secure, real-time electronic transactions, the company has a license from the Ministry of Commerce of Panama to handle large numbers of small remittances in Panama and internationally, as well as bank accounts approved at Panama banks. Money sent home by migrants in remittances - of US$300 million yearly - constitutes the second largest financial inflow to many developing countries, exceeding international aid. The company also provides stored value card and credit card solutions to businesses, government, consumers and financial institutions with security, efficiency, and competitiveness, while reducing their costs.
Assets include US$50,000 in Panama bank required by law to maintain the remittance license.
Investment requirement: US$150,000
More information about remittances in
http://en.wikipedia.org/wiki/Remittance
http://remittancesgateway.org/
http://blogs.worldbank.org/peoplemove/

1998 BVI ready-made shelf company
A 12-year old British Virgin Islands International Business Company with nominee directors and nominee shareholders is for sale. Price includes payment of reactivation fees.
A seasoned BVI company offers...
1. Credibility with Financial Institutions as a result of its age, a BVI company can establish relationships easier with major financial institutions such as banks, brokers, and credit card companies to secure more favorable terms for your operations.
2. Credibility with Clients by leveraging the credibility of a vintage BVI company, you will position yourself as the owner of a successful business vehicle.
3. Credibility with Partners and Competitors the pedigree, age and descent of a seasoned BVI company create 'a micro climate' for its operations inspiring respect and admiration from both business partners and competitors.
Investment requirement: US$20,000
More information about BVI companies in http://www.bvifsc.vg/

High-yield private placements
Placements available to high end, accredited investors supported by a combination of high yield and short term investments. These private placements yield substantially higher returns than
bank certificates of deposit, most corporate bonds and mortgages. The company has a flawless payment history and stability without the inconsistency of the mortgage markets, bonds backed by real estate or hedge funds. Short term instruments (two years or less) provide guaranteed yields of 10% - 12% per annum
Rates of Return: One Year = 10% per annum (Two Payments of 5%).
Two Years = 10.25 % per annum (Four Payments of 5.125%). Semi-Annual Distributions.
These are unregistered, uninsured securities and are appropriate for sophisticated, accredited investors only who meet qualification standards and minimum net worth requirement. This Information is not an Offering or a Solicitation to Buy or Invest under any Securities Act.
Minimum Investment: $150,000 (USD) or equivalent, in any major currency.

Small Caribbean bank for sale
Ideal for acquisition, significant shareholding, joint venture by a family office or Trading Group wishing to monitor control of their funds or by another bank. The Bank itself is run by a small number of staff with good contacts built over a period of time.
Acquisition price for 100% of the Bank is $3.5 million.

Merchant Accounts for Credit Card Processing
Merchant Accounts by banks in Belize, Cyprus and Germany, offer Credit Card Merchant Processing to foreign companies. Companies should consider Electronic Commerce as an "added value" to its particular means of making business, since it will receive unlimited advantages from a market that opens the doors to a world with endless possibilities and, what is better, to potential customers.
The electronic commerce offers our customers the advantage of selling their products and services through Internet, using the most advanced technology allowing the globalisation of their company.
Subject to full due diligence and compliance with know-your-customer rules.
Minimum Investment: $20,000
More information about merchant accounts in http://en.wikipedia.org/wiki/Merchant_account

For further information about these opportunities, email serious inquiries to info@ uspanamatrade.org

The information listed was provided by the promoters of each investment opportunity. Whilst every effort has been made to ensure that the information contained herein is correct, we accept no responsibility, legal or otherwise, for any errors or omissions. This material is provided for general information purposes only and does not constitute investment or other professional advice. We accept no responsibility for any loss which may arise from reliance on this information and we make no warranty, express or implied, regarding the availability of any product or service in any country. This information should not form the basis of any decision as to a particular course of action; nor should it be relied on as investment advice.

The information contained herein is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would result in requiring any registration requirement within such jurisdiction or country. It is the responsibility of such persons or entities to ascertain the terms of, and comply with, any local taxes, laws or regulations.

More information available by email to mailto:aaguilar%20@%20nysbar.com or Skype

My Panama Lawyer

London, the citadel of the offshore world

Former strongman returns to Panama "largely irrelevant"

Las Uvas: The town that only exists in paper

French minister causes suspension of contract

Terms of the Panama-US Trade Promotion Agreement

Societe Generale leaving Panama (again)

Panama trade agreement finally approved

PanamaInvest conferences feature investment opportunities

A New Path for Panama

Volume 25, 2007

Panama Trade Agreements sent to Congress for vote

New suit alleges RICO conspiracy

|10/03/2011 @ 11:21AM |826 views

Trust Fund Stolen From Poor Children In Panama, Lawsuit Claims

Lombardi Aguilar Attorney To Speak at New York State Bar Association Panel Discussion

US ExIm Bank Chaiman visits Panama

Ex-Im Bank Chairman Fred P. Hochberg Conducts Business Development Mission in Panama, August 7 - 8

Disney makes it to Panama! - sort of...

Panama exits the OECD Grey List

OECD Promotes Panama to List of Financially Transparent Countries

A succesful day at Immigration...

Panama Attorneys advise investors forming joint venture for energy projects in West Africa

Ras al Khaimah opens its RAK Offshore center

Using your RAK company

Panama hires new K Street lobbyists

Efforts continue to ensure ratification of US-Panama FTA

Economía y Negocios

EU promete intensificar ratificación del TPC

Ordenan que se ratifique el TPC

IRS announces August 31, 2011 Offshore Voluntary Disclosure Initiative (OVDI) deadline

How to Make a Voluntary Disclosure Under the 2011 OVDI

Pre-Clearance:

Offshore Voluntary Disclosure Letter

Complete Voluntary Disclosure Package

Mr. Martinelli goes to Washington

Nikki Beach owners want Panama resort to stop using its name

Howard AFB becomes Panama Pacifico

Property Investing in Panama

Can Panama Become the Singapore/Rotterdam-style Hub for Latin America?

24 Feb 2011: Panama - Where the World Meets

Widening of Panama Canal results in more spending elsewhere

Panamapundit logs off

Abuses by Panama Immigration Directors reach Inter-American Courts

Panama and Qatar Sign Tax Agreement

Panama and Cyprus Discuss Tax Agreement

Панама корпорации закона

Panama as Regional Business Hub

$2.6 billion in loan guarantees vs. 13,000 jobs

Copa and Boeing sign largest ever Panama-US business deal

History of Real Estate Agents

Why Tax Information Exchange Agreements Are 'Toothless'

U.S., Panama Sign New Tax Information Exchange Agreement

Say goodbye to your BVI bearer shares on December 31, 2010

U.S.-Panama Business Group Gears Up For Washington FTA Lobbying Push

Nov 17, 2010 'Panama Week' planned in Washington, D.C.

'Panama Week' planned in Washington, D.C.

Nov 1 - 6: Panama Week in Hanoi

Panama and Taiwan start talks for signing of Double Taxation Agreement

Are offshore structures for you?

Panama heading for target of 12 Double Taxation Agreements

Panama Property Tax Lawyer

Panama-France Treaty protects Panama corporations

US citizens face penalties when failing to report their offshore accounts

EB-5 visa still attractive for the millionaires moving to the US

Swiss lawyer indicted in US after advising HSBC client

What foreign investors should know when buying property in the US

Panama Attorneys Advise Offshore Hedge Fund

July 15-21 Panama Immigration Moratorium Fair

Pensionado faces 3 years in prison for failure to report offshore account

More From Businessweek

International Business Opportunities