Colombia Blacklists Panama as a Tax Haven
Colombia categorizing Panama as a tax haven will bring about important consequences for the Panamanian economy. Santiago Rojas, the director of the National Tax and Customs Department in Colombia, explained that money orders sent from Colombia to Panama will now be taxed at 33% instead of 10%.
In addition, Rojas says the more than 500,000 Colombians living in Panama will be required to pay taxes in both countries. “The law states that Colombians that have tax residency in a tax haven will be considered Colombian tax residents, and will therefore be subject to income taxes on their annual worldwide income.”
It seems that Colombia is picking up some bad habits, perhaps influenced by the US’s rapacious system of citizenship-based taxation. And besides, tax havens are something that should be applauded, not persecuted. This IM article has all the details.