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Ecuador: Maybe Panama won't be so special anymore.....wow:
A few lines in a surprise back door law introduced by President Ricardo Martinelli of Panama dated yesterday have changed the Panama tax code, making Panama companies of all types liable to tax on their worldwide income starting today, New Year’s Eve. Our in-house Offshore Planning and Wealth Management Expert Peter Macfarlane has been called back from his ski chalet in the Swiss Alps to provide further information and emergency tax advice for those affected.
Yes, you read that right, as of today, December 31st, 2013, Panama is no longer a tax haven. This startling change may well be repealed or deemed unconstitutional early in the New Year, but the damage is done.
What Happened?
Panama’s equivalent of April Fools Day, known as the ‘Day of the Innocents’, is celebrated on December 28th each year. We might have been tempted to pass this fiscal reform off as a fool’s day joke, if it were not horribly true. It’s been published in black and white in the official gazette, under the title of “Law 120 of 30th December 2013?.
The legislation, however, certainly makes a joke of Panamanian legislators. Nobody, absolutely nobody, was expecting this law. The legislators were on their Christmas/New Year vacation and were not even informed. The drastic change is ‘hidden’ in a piece of legislation apparently dedicated to such mundane matters as multi-modal logistics and a special tax regime for tourism, that was passed through at the end of a marathon of extraordinary sessions.
Article 2 of the new law, translates roughly into English as follows:
Article 694 of the Fiscal Code is changed as follows:
The object of this tax is taxable income produced, from whatever source, within or outside the territory of the Republic of Panama no matter in what place it is received.
Taxpayer, term used in this Title, is any person natural or legal, domestic or foreign, who receives the taxable income which is the object of the tax.
Article 3 makes a further sweeping general change to Panamanian law as a whole:
When any legal norm makes reference to the territorial tax system, one should understand that it refers to the worldwide tax system in the Republic of Panama.
Of course, the entire financial and business community is up in arms about this already – as sure as night follows day, this law would destroy their business. President Martinelli is also having second thoughts: he has already tweeted that he welcomes a debate, and if the law needs to be repealed, it will be repealed. This, however, as one commentator posted, just makes the Panamanian government look like clowns.
Why Would Martinelli Do This?
The answer to this question is not at all clear today. Rumors of a global government conspiracy are already spreading like wildfire. Martinelli definitely understands the value of the billions of dollars that Panama’s financial and banking sector brings to the economy. The territorial tax system has been in place for nearly a century, leading to registration of thousands upon thousands of offshore companies, Private Interest Foundations and the like, creating employment for an army of lawyers, nominee directors and public registry officials. Panama also runs a huge ship registry which will be drastically affected by worldwide taxation: most ships are owned by Panamanian companies and no ship owner will want to pay taxes on profits generated by their ships in international waters.
What Will Happen Next?
This change is really so extreme that even Martinelli, known for his dictatorial and opaque style but nonetheless generally a business-friendly President and a man of action, could never hope to get it through without a huge debate. I think there is a very high chance that this law will be repealed before it is ever enforced.
Nonetheless, nobody likes to live with uncertainty and our people in Panama tell the Panama Public Registry, which to its credit works long hours and even over the holidays, was already buzzing this morning with requests for the familiar Certificates of Good Standing that are required to redomicile Panamanian companies to other, more tax-friendly jurisdictions. We’ve already started Emergency Redomiciliations for a few of our clients. These are people doing substantial business through their Panama corporations, who want to remain 100% compliant with the law, and we had to wake them up today with news that from today their Panama companies are subject to taxation on worldwide income. They are not going to hang about waiting for the debate.
Panama is already one of the most expensive jurisdictions in the world to form an offshore company. Up until now, there was some justification for this, as the level of professional services in Panama is relatively good (if you choose the right service provider at least.) Many people, however, will now be attracted to cheaper jurisdictions like Nevis, Belize, Seychelles etc.
What Should I Do Next? Is Redomiciliation out of Panama the Answer?
First of all, don’t panic! We live in a fiscally uncertain world and, unfortunately, surprises like this can happen. We always need to be flexible and be prepared.
But, yes, if you have a Panama company, you should probably think about ‘continuing’ it in another jurisdiction. Even if this ridiculous law is repealed, I would hesitate ever to recommend Panama to a client again after this. Continuing, or redomiciling, simply means moving the company from one jurisdiction to another. Fortunately it is quite a straightforward process and it has no effect on assets owned by the company. It is little more than a change of address. However, assuming you have a Panama company but no Panamanian business activities, this is an easy way to extricate yourself from the new law quickly, conveniently and of course completely legally.
The Caribbean jurisdictions are probably the most attractive in this respect, and even offer ‘Emergency Redomiciliation’ for an extra rush fee. This basically means that the process can be started before the required certificates and notarized documents actually physically arrive in the new jurisdiction.
There may be certain circumstances where a Caribbean IBC (International Business Corporation) is not what you need. Basically this applies to more sophisticated structures where you need to get around anti-avoidance legislation aimed at IBCs. For many clients, an LLC, such as those offered by Nevis, is a good solution and it is possible to change a company’s form from Corporation to LLC.
I’ve already been on the phone this afternoon to providers on the island of Nevis and they have promised to send over after the New Year holiday specific information on redomiciliation of companies to Nevis.
I do recommend that all owners of Panama corporations get in touch early in the New Year with their professional advisers, or seek professional advice elsewhere.
Ecuador: LAST NIGHT THEY CAUGHT 3 OF THEM ON THE BUS TO MANTA:
They captured 3 of the 5 that tried to high jack the bus last night. THANKS to the 4 banana farmers that had machete's in there carry ons inside the bus helped the authorities capture them... They were from the coastal city of Guayaquil.. The coastal people are coming in Quito daily with bad habits. The President will be putting extra military and check points of National Police along each highway to stop coastal robbers coming in from the western part of the Andes into Quito. The flow of coastal Ecuaodorians coming in Quito have many residents concerned and worried. Coastal people talk fast walk fast and rob fast. The President has implemented a plan to check all busses coming into every Quito bus terminal for drugs, guns, and residency cards. The coastal people are looking for jobs in Quito but end up in jail after a few days when they see opportunities to steal or rob someone. Cameras have already gone up around old town Quito and they will going around the Mariscal Plaza Foch starting next week to help Xpats from getting robbed by coastal Ecuadorians.. On every corner we will have more presence these last days before Christmas since coastal people hang out at the malls waitng for there next victim.. Its like night and day when I see the difference between coastal people and Andes people . The coastal people have no morals and family values.
Ecuador: USA canceled aid to Ecuador:
QUITO (Reuters) - The United States has canceled aid to Ecuador worth $32 million over the coming years after long-running disputes with the government of socialist President Rafael Correa, according to U.S. officials.
Correa, a U.S.-trained economist, has often been at odds with Washington since winning power in 2007. He accuses the U.S. government of trying to undermine him and this year Ecuador renounced U.S. trade benefits dating from the early 1990s.
According to a U.S. State Department spokesperson, Ecuador recently informed the U.S. Agency for International Development (USAID) it could not undertake new activities or extend existing ones without an accord governing bilateral assistance. This led to the U.S. decision to cancel the aid.
"Our planned $32 million in assistance programs for the coming years would have allowed us to partner with Ecuadoreans to achieve their own development goals in critical areas," said a letter dated December 12 from USAID to Ecuador seen by Reuters.
Ecuadorean government officials had no immediate comment.
The USAID letter said that in 60 years of working together, more than $800 million in development aid had helped hundreds of thousands of Ecuadoreans.
A spokesperson for the U.S. Embassy in Quito said two years of negotiations failed to reach a new agreement.
"USAID had begun incurring significant costs for four recently launched projects (focused on environmental protection and civil society strengthening) which have been unable to proceed," the embassy spokesperson said.
"Their cancellation was the only fiscally prudent option."
Correa, a vocal member of a bloc of left-wing Latin American leaders, won re-election in a landslide early this year after generous state spending on infrastructure and health services.
He has irked investors with his anti-capitalist rhetoric, and this year he passed a controversial law creating a state media watchdog that critics denounced as a blow to free speech. Correa says it enshrines principles of balance.
In 2011, Ecuador expelled the U.S. ambassador to Quito after American diplomatic cables published by WikiLeaks alleged that Correa's government had turned a blind eye to police corruption.
Last year, he threatened to expel USAID from the country, alleging that it was funding local groups that he said sought to undermine the region's "progressive" governments.
In May, Bolivia's socialist President Evo Morales expelled USAID in protest after U.S. Secretary of State John Kerry referred to Latin America as Washington's "backyard."
Ties between Washington and Ecuador were strained again this year after Correa said he would consider offering asylum to the fugitive former U.S. intelligence contractor Edward Snowden.
Last year, Correa granted asylum to WikiLeaks' founder Julian Assange, saying they were both victims of persecution. Assange is holed up in Ecuador's embassy in London. Learn how to hide your money .. Invest wisely... Ecuador opportunites on demand..
pminga9961@aol.com
239-234-4428... www.immigrationecuador.com
Ecuador Welcome Forum: 8 Lap Tops stolen these last 10 days:
I mean what I say.. THEY ARE ON IT BIG TIME.. Do not put the lap tops under your seat next to your feet below you. They cut the bag and slip it out from under your seat.. Its happned to 8 Xpats these past 10 days.. They even have broken ones they exchange with the one they steal from you.. Its a shift change from driver to driver now.. Its Chistmas time and they need money fast for there children.. Look for the red cap men that says USMC on there fron sides in the back of the bus.. One will be in front as a decoy and the other will be the point man to squash... Stay out of the way when it hits the fan.. Bus driver is on it and it wil be on tape. The truck will be behind the bus when it stops to evacuate all Americans.. This will happen three times and once on Christmas Eve.. Pass the word around.. The bus from Quito to Manta leaving 8 PM.. The bus that leaves Quito to Cuenca 8 PM and the last bus to be determined on Christmas Eve the biggest traveling day.. If your at the terminal and see them enter the bus do not approach them.. Either stay on the bus and play along or get off and take another bus at a later time.. Cant help you guys on the coast but Quito is getting to many thieves coming in from the coast and we have decided to cleans house over this way.. The rule is you stay over there on the coast and we stay over here in Quito and we will all get along.. WE CAN CLEAN UP QUITO BUT THE COAST TO FAR GONE AND HAS A LONG WAY TO GO.. GOOD LUCK.. PUT YOUR LAP TOPS INSIDE YOUR JACKETS OR ON YOUR LAP OR SIT AT THE BACK OF THE BUS SO YOUR NOT A TARGET..
Ecuador Welcome Forum: Single engine plane rentals in ecuador:
Key Line since your a pilot .. Do you know of anyone who wants to work part time to fly a helicopter out of that nasty traffic from the new Quito Airport to the mIddle of World helicopter pad during rush hours. The new roads still need another 8 months to finish that will cut down time by 30 minutes once they finish............................................
Everything you need to know about Ecuador click Below,,,,,,,,,
www.immigrationecuador.com
Kind Regards,
Nora & Patrick
239-234-4428 magic jack
02-235-0310 Land Line
0992066527 cell phone
May The Creator Richly Bless You... and the Grace of God protect you....
Ecuador: 100 points to consider before moving or retiring in Ecuador:
Breather's husband voice reminds me of the wolfman Jack. I had a great time with them in Nora's hometown.. Nora's family built a new Bull arena for the kids to play with the baby bulls and train for bullfighting. My father in law kept shoving rasberry moonshine shots in front of them to thank them for visiting. They don't drink usually but made an exception that day to please the towns people and enjoy the festivities. San Jose de Minas still talks about how gracious and wonderful they were. She doesn't eat meat but ate something anyways with my wifes family to please them. I think it was some type of sheep or goat meat.. It was to tough for me to chew myself and I had to hide it in my napkin and excuse myself from the table... LOL pminga9961@aol.com ....
www.immigrationecuador.com
...................................................
Immigration Residency, Dual Citizenship Passports, Marriages, in 2 to 4 weeks
Our Florida Magic Jack Phone 239-234-4428
that rolls over to Ecuador 24 hours a day 7 days a week
Patrick & Nora
May The Creator Richly Bless You... and the Grace of God protect you....
Ecuador: What to expect when you hire a facilitator from Cuenca VS Quito:
When you hire a facilitator to do your Immigration case. You should not have to do any of your paperwork yourself period.
Nora was in Cuenca helping Noshi a facilitator that needed help with a few files and noticed most of the facilitators at Immigration in Cuenca demand the Xpats to do there own translations, notaries, and pointing fingers down the street giving orders to Xpats to do there own copies and affidavits .
Its rude, and its unprofessional and it needs to stop.
If you pay $1.00 $50.00 or $1,000 you pay for the service so make the facilitator get off her oe his butt and work for you.
Nora said the facilitators were sitting at Immigration while the XPATS were running around like chickens with there heads cut off trying to get there paperwork in order.
Nora is from Ecuador but she lived in the USA for 18 years. She said the Xpats feel intimidated and guilty for making them work a little for there money.
You should not have to lift one finger or make one copy of any document once you hire anyone to do your Immigration case. It only makes it harder for the next case to come along.
Make your facilitator earn there paycheck. You deserve good service and thats what you pay for.
You don't tip unless you think they 100% percent deserve it. pminga9961@aol.com
Ecuador: President was in Nora's home town of San Jose de Minas Friday to sign new bill.:
The President did not veto the law, so its publication in the Official Gazette is the only thing pending to enter into force.
The President said that he did not make any observations because the National Assembly did a good job. It was announced yesterday during the broadcast citizen, recorded in San Jose de Minas, 80 kilometers from Quito, in the midst of a celebration of the attendees.
Correa reiterated that the regulation ratifies the communication as a right and denied that the purpose is for The State to take control of The media. He noted that preemptive censorship is prohibited and that now the press cannot advertise things that can affect health.
The law creates concern to the major national and international media. Several organizations have warned of the risks of the new ruling, as Mary O’Grady, of the Board of the Wall Street Journal and editor of ‘The Americas’ column, who commented that “what happens when the Government tries to control the media is that they try to control the debate of ideas in public (…).”
In addition the new road from San Antonio ( Mitad Del Mundo ) to Perucho 15 minutes to San Jose de Minas will start construction in September. It will save save you at least 1 hour from Quito to Otavalo. You will not have to go by the new airport. No more Opium plants will be allowed or tolerated for tooth aches. The President did not give approval for the Inca tombs behind my brother in laws ranch for entry. The people in San Jose de Minas believe it will bring the whole town bad luck if its touched.. Sorry German and French scientists for trying to touch soemthing that needs to be left alone .... Nora's Immigration Services in 2 to 4 weeks.... pminga9961@aol.com 239-234-4428
Ecuador: 1982 Manslaughter Conviction Immigration appeal Approved:
Race, Color, Religon, and National Origin does play an important part of your Immigration Case. My client who happens to be from Miami that is puerta rican requested an appeal on his cas that was denied because of his conviction. My wife Nora pulled the race card out and also submitted the Lorena Bobbit Syndrome since she is from Ecuador and a goddess to all Ecuadorian women. The director asked my client to see the police report. It stated he followed his wife from Miami to Fort Lauderdale and caught her in the act of adultery. They had a heated argument in the parking lot and she picked up a rock and threw it at his truck and he proceeded to run over her and killed her. The director asked one question. Did you run over her once or twice. My client said its in the report only once. He said I approve you. Lorena Bobbit cut off her husbands penis for doing that and you ran over your wife for dong the same thing. My personal opinion if my client was white he would not have been approved. So Race did play a part in the determination of our case. Some of you might disagree with this but my client was pleading his case in Spanish and using crocodile tears and I was sitting there wanting to puke.. Anyways the moral to the story is I should start using better defensive tactics for my clients instead of rushing to judgement so quickly. If you have a legitmate excuse of commiting your crime call us at 239-234-4428 or email us ... pminga9961@aol.com....However I am not going to handle Crystal Meth Lab felony convictions from the U.S... I don't want Meth Labs in Ecuador... By the way there was a post about a conviction of giving alcohol to a minor in 1964. We can use another case that was similar to Ecuador in 1999 and can overturn your denied Immigration case.
Ecuador: Need feedback about Nora Minga:
two major crystal meth felony accounts in Vegas... I should not have to explain his back ground to anyone.. He said he loved my cooking and was here for free and did not pay for the stay... But I will still try and make him legal if everyone wants him here and can put up with him bouncing off the walls all the time. I just feel he was acting wierd like he was still on the stuff asking the same questions over and over and would not go to bed..
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