On 31 December 2013, only hours after the Panamanian Government gazetted a new law, shock waves went through Panama's business community. The outcry generated demands that the law be amended or repealed immediately.What do those of us here in the United States care about Panama and its tax law?
The primary subject of Law No. 120 of 2013 had nothing to do with income taxes, but two articles had been inserted into it to amend the tax code. Of greatest concern was that,
"Every natural or juridical, domestic or foreign, who receives any taxable income within or outside Panamanian territory, must pay taxes."The meaning was clear: Those who pay taxes in Panama must in the future, pay based on their worldwide income instead of just their Panamanian-sourced income.
I urge you to read the rest of the article.
Take note of how the law was passed. And why it was passed. And why it was passed in the way it was passed. . . . And then pay attention to parallels here in the United States.
And while you're there, I encourage you to read the first three responses to or comments on the article. Mike Robinson adds another exemplary story of what we are observing . . . and/or are about to observe.