The Economist weighs in on the OECD issue in a "fair and balanced" way, pointing out the main issues and the argument Panama puts forth in order to maintain its sovereignty. Key excerpt: Mr Martinelli cannot be seen as buckling to
foreign pressure if he is to maintain his popularity. “Unlike Caribbean islands, Panama has a real economy, which makes negotiating treaties more complicated,” says Dulcidio de la Guardia, the vice-minister of finance. “Panama wants to be a responsible member of the international community. But it will always take care of its interests.”
Last month I posted several articles from the local press praising the opening of a new diamond center here in Panama. On the surface it looks like another good thing to come to the country, but according to an article in International Relations and security network, it could turn into another black eye for the country. The article goes into detail about the illegal diamond trade in Latin America and the connections to Chavez and Iran.
The Obama administration is making it clear that they will do everything they can to keep money from the leaving the country and this latest maneuver may just end the ability for U.S. citizens to use offshore bank accounts entirely. Not because there will be a law against it, but because the penalties imposed on foreign banks for refusing to disclose beneficial account holders will be so punitive that no bank will want any U.S. citizens as
customers.
It is unfortunate that one of the most beautiful areas of the country is also one of the most toxic according to this article in La Prensa. " "In Cerro Punta people bathe daily with pesticides, exposing themselves to risk predictions reserved" he said. Carranza concerns that when people use agrochemicals is
exposed to large doses of these hazardous substances."
The battle over ROP land along coastal areas has heated up as many gathered at the ministry yesterday to air their concerns about the new law. Although there are many details involved, the bottom
line for the state is money and how much they can charge per hectare to those who want to retain and title the land. For many foreigners who purchased ROP from local farmers this comes as a complete shock as they did not expect to have to pay more than they already have. For many it could mean the end of their dreams of retirement in Panama as they may not have funds enough to buy the property from the state.
Such a deal! For those of us who live in Panama, stories such as these come as no surprise and most of the populace just accept it as the way things are.
From La Prensa The lack of controls to access the database of the Department of Revenue (DGI) left a window open to alter the accounts that taxpayers have with the state.
The new Panama tax laws #49 were implemented in September and I have been waiting for someone with a good understanding of Panama Tax law to give me a write up in English. The law firm of ICAZA, Gonzalez-Ruiz & Aleman have done a great job of doing it. I have used this law firm for about 10 years and very reputable and capable. The bottom line is that the government is moving to tax all property in the country and although there have been
tax exemptions for improvements on the land (homes and other construction) as an incentive to build and buy, the land itself is not exempt and will be subject to a rather high mil rate by comparison to other countries, both in the first and third worlds.
This video was sent to me by Sam K. and it is so good I wanted to share it with everyone. Steve Wynn is not happy with the way the current administration in the U.S. is doing things, but instead of just complaining about it, he has some good ideas on how to improve the situation. The beginning is more of an advertisement on his Vegas properties, but in a few minutes it gets into the meat of his ideas. Well worth the time to view.
In the previous post I chastised the ATP for increasing the cost of entry into the country by imposing a $10 per person tourist charge. This is on top of a doubling of the airport fee to $40 per person. Miguel Lopez sent me this important article on the effect of the economy on Costa Rica tourism and how the Americans are cutting back dramatically on how much time and money they spend in the country. This is a very important article for all of us in
the tourism industry to read, especially the ATP who's job it is to use the taxes collected from the tourists to attract more of them. Every additional barrier we raise costs us visitors. I say get rid of them all and put out the welcome mat.
Panama Pacifico is the exciting 1,400-hectare redevelopment on the site of the former U.S. Howard Air Force Base into a major new community in Panama with a variety of uses including corporate headquarters, call centers, offices,
logistics facilities, new homes, a championship golf course, hotels, retail, schools, health center and other amenities.
Although we had been told the $5 tourist card was discontinued, we now find that this won't be implemented until January and although the physical card has been eliminated, the cost has gone from $5 to $10. The only good news is that it will be paid along with
the ticket purchase instead of having to hunt it down when arriving in the airport. The ATP says it will also cover the cost of insurance for the tourist, but there is no information about the coverage and what it entails. There are plenty of companies selling travel insurance so I question the need for Panama to enter this market.
It seems Panama does not have a problem in borrowing capital these days. I only hope that she has the ability to pay it back without saddling its inhabitants with a heavy tax burden. If that can be avoided it will be a first in the history of world governance. As the article points out, Panama external debt currently stands at over $11 billion. With an annual budget approved this month of about $11 billion and a GDP of about $20 billion, Panama has
an extremely high debt ratio before additional borrowings.
Considering the population of the country this seems like a large number of new businesses and it indicates a strong entrepreneurial spirit among the inhabitants. It includes every
type of business from the small kiosk to the large conglomerates. As the article points out, the number of new businesses registered is greater, but their capital investment is 50% lower than in 2008, reflecting a slowing economy. The portal for registering companies is seen as a major advantage in the registering of the companies, but the ministry of commerce says that it has canceled over 4000 permits due to lack of payment or false data provided during registration. I sounds like some
folks in Panama are using the registry portal as they did the 911 emergency number just to agitate the state.
Panama spends a great deal of its budget on health and education, but unfortunately it does not pay off. This was made acutely aware by a recent study by UNESCO. Panama ranked 8th out of 11 countries evaluated. Who is to blame? Certainly it is the qualifications of the educators as well as the acceptance of cheating as a way to get ahead in this society. Cuba's ranking at the top may make some point to that communist country as the way to a better
future, but I believe it is better to be stupid and free than smart and enslaved!
Construction continues to grow in Panama mostly due to the increase spending on public housing and infrastructure projects by the state according to La Prensa.
I have always been fascinated by comparing the relative size of things from the infinitesimal to the universel. Here is a most interesting journey you can take in 10 seconds that puts some things into perspective starting with the humble coffee bean.
