United States and Panama Reach Agreement to Exchange Tax Information

The U.S. Department of the Treasury has announced the entry into force of the 2010 Tax Information Exchange Agreement (TIEA) with Panama. The TIEA allows both countries to seek information pertaining to taxes in both civil and criminal matters for tax years beginning after Nov. 29, 2007. The pact is applicable to all federal taxes in the U.S., including federal employment taxes. The agreement defines “criminal tax matters” as tax matters involving intentional conduct which is liable to prosecution under the criminal laws of the requesting jurisdiction [2010 Panama-U.S. Tax Information Exchange Agreement; U.S. Treasury Press Release, Treasury: U.S.-Panama Tax Information Exchange Agreement Now In Effect, 4/18/11; Panama/U.S. Joint Declaration, 11/30/10].