Panama Papers: ‘Holdout’ Panama rebuked for tax haven

The head of the international body responsible for policing the world’s tax havens that help shelter the rich and powerful last night criticised Panama as a “holdout” state.

Angel Gurria, secretary-general of the Organisation for Co-operation and Development (OECD), said that Panama had broken pledges to lift the cloak of secrecy on companies based there that makes the central American country such a popular choice for tax evaders.

He also hinted world governments would be forced into new measures to lead a new crackdown on all tax havens.

The publication of the ‘Panama Papers’ has again exposed the role Panama and other centres play in sheltering business elites and politicians from paying tax.

The revelations have raised the heat on governments which had promised to end tax evasion following the global banking slump.

The OECD, along with its sister Paris organisation, the Global Forum On Transparency and Exchange of Information, has been charged with bringing tax havens into line.

The world’s richest countries and financial centres remain under pressure to explain why they allow tax havens to exist.

“Panama is the last major holdout that continues to allow funds to be hidden offshore from tax and law enforcement authorities,” Mr Gurria said.

“The time has come to make sure that no jurisdiction can benefit from failing to meet their commitments,” he said.

He said the next Group of 20 meeting of finance ministers and a global anti-corruption summit “will be critical”.