In light of recent information disclosed in the Panama papers, the Central American nation is under more scrutiny about its tax transparency than ever before. International financial organisations warn that Panama is not even in the top 10 jurisdictions for aiding reporting secrecy.
The leak of documents from the Panamanian law firm has put scrutiny on tax havens and how frequently they are being used to hide wealth and evade tax, prompting a panel to improve transparency in Panama’s overseas financial industry.
The Tax Justice Network, an organisation which analyses global tax & financial reporting has issued a list ranking jurisdictions according to the number of undisclosed transactions and the power of their financial reporting regulations.
The top ten jurisdictions for financial secrecy:
The Cayman Islands.
United Arab Emirates.
List source: The Tax Justice Network.
Questions as to why so few US residents have been implicated in the Panama papers scandal, with experts stating that Americans & Europeans are using the above countries to house their wealth. Here you may find out more on that topic.