Global Daily Tax News, Panama Cracking Down On Real Property Tax Evasion, (Dec 28, 2023)

Authorities in Panama have launched a probe into tax evasion connected with the sale of real estate.

The tax agency said it has launched proceedings against 60 people involved in the sale and purchase of real estate, including buyers, sellers, intermediaries, and attorneys.

The investigations follow ongoing analysis of financial data to detect anomalies in transaction prices.

The Economy and Finance Ministry said: "Inconsistencies were detected in the purchase prices between the public deeds registered in the Public Registry and the purchase and sale contracts or promise of sale that the parties provide to the banking institutions, as justification of the income received."

"Investigations have shown that buyers and sellers agree to simulate different values in said documents and set lower figures than the real ones in the contracts contained in the registered public deeds, with which they end up paying lower amounts in property transfer tax and capital gains tax," the Ministry said.