Suffering under the aftermath of the “Panama Papers” scandal, the Central American nation is trying to recover greater transparency on the international stage. Although Lisbon would like to shorten its tax haven blacklist, Panama’s departure is far from certain. Pressure from the Panamanian Government extends on several fronts, from the promise of greater information sharing on the one hand to diplomatic retaliation on the other against those who continue to consider it as “non-cooperative”. For the time being, Portugal is adopting a “wait-and-see” strategy.
The EU has put 17 jurisdictions on a blacklist: American Samoa, Bahrain, Barbados, Grenada, Guam, South Korea, Macau, Marshall Islands, Mongolia, Namibia, Palau, Panama, St Lucia, Samoa, Trinidad and Tobago, Tunisia and the United Arab Emirates. However, when contrasting the revelations in the Paradise and Panama Papers about international tax schemes, exposing some of the intricate ways that the world’s wealthy use to evade tax through offshore havens, it quickly becomes apparent that the EU has chosen to target countries with little economic or political weight. Continue reading