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Press Release No. 230
Panama Reiterates to the OECD the Need for Equitable
And Non-Discriminatory Treatment
The Government of the Republic of Panama has knowledge that the Presidency of the European Union (EU) submitted, on December 3, a tax proposal to their Member States that would grant certain EU member
countries – also members of the Organization for Economic Cooperation and Development (OECD) – special and different treatment in regard to compromises that "non-OECD" countries and jurisdictions – among them the
Republic of Panama – had signed toward their incorporation in the efforts of the Global Forum on transparency and tax information exchange prompted by the OECD.
Taking not of the international media reports,
the Government of Panama understands that the Presidency of the European Council would be proposing to Austria, Luxembourg and Belgium, not to exchange tax information with other EU Member States, under the same
parameters applied within the OECD, until January 1, 2011. Under this proposal, Switzerland would receive similar treatment.
The Government of Panama considers that a situation like the one reported
would be, at least, worrisome.
By signing a letter of agreement with the OECD on April 15, 2002, the Government of Panama clearly stated that its participation would be based on an equitable and
non-discriminatory treatment with each and all OECD and "non-OECD" countries, a principle summarized in the English notion of the "level playing field."
Confirmation that out of the OECD's Global Forum,
almost half of its members would initiate negotiations to enter into agreements on the matter with the purpose of generating, among them, special and different conditions in regard to the non-OECD countries and
jurisdictions which directly compete with them in the promotion of financial services, puts into doubt the seriousness of their participation in the Global Forum as well as their credibility.
The Government
of Panama would consider totally unacceptable that, within the EU, whose States are, at the same time, members of the OECD, to some of them, namely, Belgium, Austria and Luxembourg, be granted flagrant preferable
conditions.
The Government of Panama considers that all EU countries and Switzerland, as members of the OECD, know very well the parameters, conditions and objectives agreed to in the Global Forum on
transparency and tax information exchange.
Any kind of action, among them or with third parties, that modify in any way the application of the dates and compromises agreed to for the future, in such a way that may create more favorable conditions in regard to "non-OECD" countries and jurisdictions, will be interpreted, unilaterally, by the Government of Panama also applicable to the Republic of Panama.
The Panamanian Government reminds that in the measure that full respect to the equity and non-discrimination principles does not exist among each and all of the States and jurisdictions which are part to it,
whether they be members or not of the OECD, this multilateral tax cooperation will not prosper and, surely, would not create the propitious environment to consider possible bilateral cooperation by the Government of
Panama in the near future.
As a consequence, the Government of Panama renews its interest and compromise to participate, multilaterally, in the initiative on Transparency and Tax Information Exchange prompted
by the OECD regarding each and all conditions stated in their letter of agreement of April 15, 2002, which were accepted by the OECD member countries.
Panama, December 10, 2002
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