Antigua dissatisfied with US position on Internet gaming

Published: Tuesday April 17, 2012
 

Prime Minister Baldwin Spencer says the United States (US) has not done enough to settle a long outstanding Internet gaming dispute with Antigua and Barbuda.

The Antiguan PM met with the US Trade Representative Ron Kirk on the issue on the weekend, but expressed disappointment that, although the case was first adjudicated in 2003, Antigua and Barbuda and the US are yet to find a "mutually agreeable solution to settle the case".

Spencer said Antigua and Barbuda had put forward several options to settle the case but that "there has been no fairness in the proposals received from the United States to date.

"Antigua and Barbuda's Internet gaming sector has been decimated by the actions of the United States, and we believe that we must be fairly compensated for those losses," Spencer said.

In an effort to bring a fresh perspective to the case, Spencer said he urged the trade representative to accept Antigua and Barbuda's recent proposal to take advantage of a "good offices" mediation effort by the director general of the World Trade Organization (WTO).

Spencer said Kirk acknowledged that a solution to the case had been elusive but assured him that "the United States remained committed to working with Antigua and Barbuda in finding a solution to the case".

The Antiguan leader said Kirk "expressed the willingness of his office to review the latest proposal from Antigua and Barbuda and to hold further discussions with Antigua and Barbuda's Ambassador in Washington, DC, over the next few days so that a strategy for further action could be discussed."

In 2005, the WTO ruled that the US had violated international trade agreements by prohibiting operation of offshore Internet gambling sites.

Antigua claimed that it lost US$3.4 billion a year due to the US action, but the WTO awarded Antigua US$21 million.

- CMC http://jamaica-gleaner.com/gleaner/20120417/business/business2.html

---

Antigua considers new case against USA at World Trade Organization

Steven Stradbrooke
April 9, 2012

Many in the gambling industry thought they’d received an early Christmas gift following December’s surprise announcement by the US Department of Justice that the Wire Act pertained only to online sports betting. For the nation of Antigua, it was like getting a Christmas gift they’d been promised years ago, but appeared to have got lost in the mail. For Antigua, the DoJ opinion appeared to be the first serious acknowledgement US authorities had given the World Trade Organization’s ruling that America needed to get its online gambling house in order.

...

‘OLD RELIABLE’ JUST WON’T CUT IT ANYMORE

Mark Mendel, Antigua’s lead attorney in the WTO dispute with the US, told CalvinAyre.com that the DoJ’s pre-Christmas bombshell had “vaporized … the entire defense. The American government has now admitted that we were right all along in our assertions about US gaming law. It is going to be very hard for them to fall back on the ‘old reliable’ that they ban all remote gaming because it is incapable of regulation. I am hopeful that they will realize at this point that settlement is in everyone’s best interest and engage on a constructive basis with Antigua.”

Problem is, as Mendel knows all too well, “to date, [the Americans] have simply ignored the whole thing.” It’s tempting to conclude that the US attitude towards the WTO is like how Robert De Niro’s character in Casino described the betting habits of Joe Pesci’s character Nicky Santorro. “When he won, he collected. When he lost, he told the bookies to go fuck themselves. I mean, what were they going to do, muscle Nicky? Nicky was the muscle.”

Looking ahead, Mendel says Antigua is considering a number of options, including “commencing a new case altogether.” In arriving at the $21m annual compensation figure, the WTO used a formula that considered only Antigua’s theoretical share of the US online horse wagering market. Given the imminent expansion of online betting options in the US, that horse-racing-only formula now seems even more insufficient.

Full text in http://calvinayre.com/2012/04/09/legal/antigua-considers-new-case-against-usa-at-world-trade-organization/


See also:
•WTO Antigua dispute still smoldering
• http://www.antiguawto.com/   WTO online gambling trade dispute brought by Antigua against the United States - Measures Affecting the Cross-Border Supply of Gambling and Betting Services (DS285) ("US-Gambling") case papers.
•WTO official case page

IRS allows deducting expenses for conventions held in Panama

Part I

Section 274.—Disallowance of Certain Entertainment, Etc., Expenses

26 CFR 1.274-1: Disallowance of Certain Entertainment, Etc., Expenses

Rev. Rul. 2011-26

....

Rev. Rul. 2007-28, 2007-1 C.B. 1039, identified each of the following jurisdictions as a beneficiary country for which there was in effect an agreement with the United States as described in section 274(h)(6)(C)(i) and for which there was not in effect a finding by the Secretary of the Treasury that the tax laws of the beneficiary country discriminate against conventions held in the United States: Antigua and Barbuda, Aruba, Bahamas, Barbados, Bermuda, Costa Rica, Dominica, Dominican Republic, Grenada, Guyana, Honduras, Jamaica, Netherlands Antilles, and Trinidad and Tobago.

Since publication of Rev. Rul. 2007-28, the “Agreement Between the Government of the United States of America and the Republic of Panama for Tax Cooperation and the Exchange of Information with Respect to Taxes” entered into force on April 18, 2011. See Treas. News Release at http://www.treasury.gov/presscenter/press-releases/Pages/tg1144.aspx (April 18, 2011). This new agreement qualifies as an agreement described in section 274(h)(6)(C)(i). Panama is a beneficiary country, and no finding is in effect by the Secretary of the Treasury that the tax laws of Panama discriminate against conventions held in the United States. Therefore, Panama is included within the North American area under section 274(h)(6) as of April 18, 2011.

Three other beneficiary countries -- the Cayman Islands, the British Virgin Islands, and Saint Lucia -- have entered into tax information exchange agreements with the United States that are not of the type described in section 274(h)(6)(C)(i) because of certain limitations in the scope or implementation of those agreements. Accordingly, these three beneficiary countries are not included as part of the North American area under section 274(h)(6). In the case of Saint Lucia, certain transition relief has been provided, as reflected in the Holding below.

HOLDING

For purposes of determining whether deductions are allowed for expenses incurred in connection with a convention, the following areas are included in the North American area as of the effective date of section 274(h) except as otherwise indicated:

Panama April 18, 2011

Full text in http://www.irs.gov/pub/irs-drop/rr-11-26.pdf

Forex companies are now subject to special licenses

The law which overhauls securities legislation has closed the loophole which allowed forex companies oto set up shop in Panama. Effective March 1, 2012, all forex companies - whether they operate inside or outside of Panama - are required to apply for a brokerage house ("casa de valores") license granted by the new Superintendent of Securities.

The abuse by several forex operators was brought to the attention of the authorities which reformed Law Decree 1 of 1999. While forex futures and options could only be traded by licensed companies, spot and cash operations were exempt from licenses. Fines for engaging in forex operations without a license are now of at least US$1,000,000.

Article 44 of the reform defines Forex activity as the operation of buying and selling coins and currency at a price or exchange rate (Foreign Exchange Market) on a recurring basis, and authorizes the Superintendent to develop procedures and special requirements and technology that the brokerage houses should maintain for the exercise of this activity. Some exceptions from the compulsory licensing are granted to government transactions.

Agreement 2 of 2004 has the requirements for the brokerage house and now the forex license. Applicants must have a paid-in capital of US$150,000, as well as:
1. Be exclusively dedicated to activities related to the broker-dealer house business.
2. Articles of Incorporation which have a corporate purpose adequate to the activities related to the broker-dealer house business and social capital of at least US$150,000 in registered shares.
3. A Board of Directors or its equivalent composed by at least three individuals (no corporate directors), all of them individuals of "proven business and professional integrity. At least one third of the members of the Board of Directors shall also possess knowledge and experience in subjects related to the stock markets or the financial sector in general.
It shall be understood that individuals with a record of respect for the commercial laws and other laws regulating the economic and business activities, as well as good business and financial practices, possess commercial and professional honorability. In any case, it shall be understood that individuals lack such honorability, when the individual is under one of the causes of incompetence to hold offices, pursuant this Agreement. Only individuals who have performed duties as principal executives or other similar responsibilities in other public and private entities for a period of at least 2 years, are deemed to have appropriate knowledge and experience.
4. Have the number of principal executives that the broker-dealer house business volume requires, who must have the corresponding licenses issued by the Commission. Every broker-dealer house must at least appoint one person as Principal executive.

The 2001 Supreme Court Schedule sets attorney fees for this type of license application of at least US$5,000. Registration fees for a brokerage house are of US$5,000. On a yearly basis a supervision fee must be paid to the Superintendent equivalent to 0.0025% of yearly trades (min $5,000.00 max. $100,000.00).

See http://mypanamalawyer.blogspot.com/2008/12/making-your-panama-investment-safer.html

Hilton Hotels announces return to Panama

Hilton Hotels Corporation announces return to Panama with four properties
May 18, 09 1:54 am
Hilton Hotels Corporation announces its return to Panama with the signing of four multi-year agreements in Panama City, Panama: two management agreements for a brand-new Hilton and new build Embassy Suites by Hilton hotel, one franchise agreement for a Doubletree by HiltonTM conversion and one franchise agreement for a newly built Hilton Garden Inn. Each hotel will represent the first in the country for each brand.
"We are truly excited about these developments in Panama City and being back in such a great city," commented Daniel Hughes, senior vice president of operations, Caribbean, Mexico, and Latin America, for Hilton Hotels Corporation. "These newest additions reinforce our commitment to add a number of properties to our Central America portfolio and to have a presence in one of the region's fastest growing destinations. We're looking forward to being part of a thriving city that continues to offer some of the best tourist attractions in the region."
The 351-room Hilton Panama will be a first class property developed by Star Bay Group, Inc., and Hilton Hotels Corporation will operate the hotel under the terms of a multi-year management agreement. Led by F&F Properties and its president Saul Faskha, construction of the Hilton Panama has begun and completion is scheduled for 2011. Located in Panama City's financial district, the hotel marks the Hilton brand's return to the capital. Just 13 miles from Tocumen International Airport and five miles from the Panama Canal, the Hilton Panama will boast an array of recreational facilities including an 8,200 square-foot fitness center, a 10,750 square-foot world-class spa, outdoor terrace swimming pool, and a Las Vegas-style casino. The property will have more than 22,000 square feet of meeting space, including a 7,500 square-foot ballroom. Dining options will include an upscale specialty restaurant, a three-meal restaurant with outdoor terrace and ocean views, and lobby bar. The 27-floor hotel will form part of a 68-floor mixed-use complex with 650,000 square feet of office space.
The Embassy Suites by Hilton Panama City will be developed by Sabadell Investment Inc. and Hilton Hotels Corporation will operate the hotel under the terms of a multi-year management agreement. Construction of the 306-room upscale, all-suite full service Embassy Suites by Hilton Panama City is scheduled to begin in 2009 with an estimated completion date of October 2011. Located in the prime financial district of Panama City, the hotel is approximately 12 miles from Tocumen International Airport and will feature a number of recreational facilities including fitness center, spa, outdoor swimming pool, gift shops, and casino. The property will offer a business center and more than 15,500 square feet of meeting space, including a 12,750 square-foot ballroom. Dining options will include a signature restaurant, a lounge bar, complimentary breakfast and evening reception area, and Flying Spoons outlet. The 21-floor hotel will be part of 71-story building with premier office space.
The Doubletree by Hilton Panama City will be developed and operated by Blue Star Hospitality, S.A., under a franchise agreement with Hilton Hotels Corporation. The 213-room property is undergoing an extensive renovation to re-brand as a Doubletree by Hilton hotel in Spring 2010. The eight-story hotel is strategically located at one of the city's most important intersections in the business district - Via España and Avenida Federico Boyd - across from the architecturally striking Iglesia del Carmen. The Doubletree by Hilton Panama City will offer a rooftop fitness center, pool and spa, retail outlets, 2,000 square feet of meetings space, and a full-service restaurant.
Developed by Metropolitan Hotels SA, the Hilton Garden Inn Panama will feature 163 spacious guestrooms and seven suites offering the Garden Sleep System® bed; ergonomic Mirra® chair by Herman Miller; complimentary wired and Wi-Fi high speed Internet access; high definition flat screen television; MP3 capable clock radio. The hotel also features a complimentary 24-hour business center; a comfortable lounge area to enjoy a cup of coffee in the morning or unwind at the end of the day with a refreshing beverage; and a total of 160 square meters of flexible meeting space -- ideal for business meetings, social events and wedding receptions. For dining options, the hotel will feature the Great American Grill® restaurant offering freshly prepared breakfast and dinner; evening room service and the 24-hour Pavilion Pantry® convenience mart with a selection of beverages, snacks, and sundries. Recreational facilities at the hotel will include an outdoor rooftop heated whirlpool; complimentary fitness center featuring Precor® cardio and strength equipment; and Stay Fit Kits® that can be checked out from the hotel front desk and enable guests to do yoga, Pilates and core workouts in the privacy of their guestroom or in the workout facility.
All properties will participate in Hilton HHonors®, the only guest rewards program that allows members to earn Points & Miles® for the same stay and redeem points for free nights with No Blackout Dates.
Ted Middleton, senior vice president, development, the Americas, for Hilton Hotels Corporation commented, "Hilton's expansion in Panama City is part of our overall plan to grow our portfolio of properties in the Caribbean and Latin America. Owners and developers understand the value of our brands and we are very optimistic about our growth opportunities in the region."
Panama City is the political and cultural center of Panama, and the financial center of Central America. Located at the Pacific entrance of the Panama Canal, the city is well known as the home of some of the tallest skyscrapers in Latin America. Tourists can explore a variety of attractions including the famous Bridge of the Americas spanning over the Panama Canal, tropical forests, and the city's old quarter featuring a waterfront promenade, theaters, museums, restaurants, and the presidential palace.
Full text in http://ehotelier.com/hospitality-news/item.php?id=A16245_0_11_0_M

London, the citadel of the offshore world

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"

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

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

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

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)

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

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

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

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

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

.

|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

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

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...

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.