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Economic Analysis of the 2017 Budget the Assembly Exp Economic analysis Of the 2017 Budget The assembly Exp. What does it Panama moves in leave us? The OECD Management rbc.com.pa ISSN 1726-0485 Edición octubre ‘16 GS Magazine February 2014 Colaboradores en esta edición Consejo José Javier Rivera J. RUNNING TITLE RUNNING Rafael Fernández Lara Editorial Giovana del C. Miranda Garzola Yhestryll McCree Zumara Garrido Ailen Galván Albin Rodríguez Mariela de Sanjur Lisbeth Martéz José Javier Rivera J. Giovana del C. Miranda G. Portada y Diagramación: Virginia Medina Fotografía: Mariela De Sedas de Sanjur Rivera, Bolívar y Castañedas @rbc_abogados RBC Abogados 2 GS Magazine February 2014 RUNNING TITLE RUNNING 3 OCTOBER 2016 06 Editorial Elections IN THE UNITED Content STATES: QUO VADIS 30. Politics 34. Panamanian Economy 45. World Economy 52. Illustrious People 55. Sports Capsule 61. Cultural Capsule 52 ROBERTO LEWIS GARCÍA DE PAREDES (1874-1949) Pluma 08 Invitada PANAMA IMPLEMENTA MEDIDAS PARA MEJORAR LA TRANSPAREN- CIA Norms Consult of interest Doctrine and APPROVED ICIRED CONSTI- TUTION AGREEMENT Jurisprudence THE EXISTENCE OF THE RELATIONSHIP OF WORK 13 INDEFINITE IS PRESUMED BETWEEN WHICH THE SER- VICE PROVIDES AND WHO RECEIVES IT 23 Legislación y Economía October 2016 Editorial ELECTIONS IN THE UNITED STATES José Javier Rivera - Abogado QUO VADIS [email protected] n the midst of turmoil that Obama’s policies on the cost of medical characterizes this moment services have affected them; others be- in the world, American peo- lieve that college education of their chil- ple must make a decisive de- dren is a heavy burden for families; oth- cision in presidential elec- ers view migration as a timely risk of their tions: Hillary Clinton or Donald Trump. own jobs; others consider that United It’s no secret that this process of select- States has lost its supremacy in the world. ing the respective Democratic and Re- Ipublican candidates has been dramatic The internal election campaigns to and has also activated all this network of choose candidates and now respective social networks that have become viral. Clinton and Trump awnings have not only referred to these issues, but have It should be kept in mind that, tradition- addressed issues of a private nature ally, elections in the United States don’t and even made personal threats that arouse the interest of voters and there- aren’t proper to a electoral tournament. fore their attendance is precarious. This electoral apathy has many causes, As if that weren’t enough, debates have but one of them is the perception of been very emotional and also plagued many citizens about the null impact that by allegations about the respective back- government has on their daily activities. ground of each candidate. In the case of Hillary Clinton about her role as wife, 6 If so, then what has created such a stir? senator, secretary of state and pre-can- Some Americans feel that President didate of Democratic Party. In the case Legislación y Economía October 2016 of Donald Trump his background as an entrepreneur, his profile as a taxpayer, I believe that a triumph of Donald his statements on immigration issues, Trump will immediately provoke a his perception of the role of women climate of global instability, and in society and other related issues. therefore will have a greater impact on the rest of world’s economies. Next November 8 will decide the fate of a country that have been linked for After all, in a democracy are the vot- more than 100 years with ours and ers who make the big decisions, final has left a mark on our republican life. verdict is then in hands of Americans. L&E Among other issues, it’s worth remem- bering that our separation from Colom- bia took place while there was an elec- It will dawn and see... tion process in the United States in 1903, we have a monetary agreement between both countries that allowed us, since 1904 to use US dollar as legal ten- der, military bases and prolonged North American presence here, sanitation of diseases and in general a strong Ameri- can influence throughout 20th century. That would be enough to justify our interest in the outcome of these elec- tions, since we are in a zone of mod- erate influence of the United States. Now it is appropriate to raise our forecast. We believe that Hillary Clinton, a Demo- cratic candidate, has the elements of knowledge, sufficient experience, emo- tional intelligence, and advice from two former presidents of that country (Bill Clinton and Barack Obama) to preserve global balance, lead human rights initia- tives, An internal and international po- litical stability and generate confidence of leaders of the West on a world that is characterized by a great fanaticism, political and religious that threatens a confrontation of greater consequences. The polls of the moment put the two can- didates in a situation of tie, and there- fore, it is necessary to provoke a partici- 7 pation of the apathetic in this election. Legislación y Economía October 2016 Invited Writer PANAMA IMPLEMENTS MEASURES TO IMPROVE TRANSPARENCY By: Zumara Garrido - Attorney / [email protected] Yhestryll Mc Cree - Attorney / [email protected] anama is part of the Global Forum on against the Republic Of Panama, with the aim PTransparency and Exchange of Fiscal In- of improving defense of Panama’s interna- formation since 2002 and reactivated its tional economic and commercial interests. participation in 2010. The Global Forum Promulgation of this law arises in con- aims to promote transparency in fiscal is- text of a tariff dispute with Colombia, after sues through the exchange of information. that country refused to comply with a rul- In order to improve the image of Panama ing of the World Trade Organization that at an international level and with a view requires to eliminate tariffs on imports of to improving transparency, Panama has textiles and footwear from Panama. The implemented a legal framework that is increase of these tariffs has generated a within reach of international standards. great affectation to operations of the Co- Below we will describe each of the lon Free Zone, considering that Colom- laws that have been published in re- bia constitutes one of its main markets. cent days on international transparency. Law 48 of 2016 establishes that retalia- tory measures are administrative, com- 1. Measures of Retaliation. mercial, financial, customs, tax, immigra- On October 26, 2016, Official Gazette No. tion, labor, public contracting, health or 28147-B published Law 48 of October 26, national security measures adopted by 2016, which subrogates Law 58 of 2002, authorities of the Republic of Panama 8 which establishes retaliatory measures in against the State subject to retaliation. case of foreign discriminatory restrictions This Act consists in the creation of a Legislación y Economía October 2016 list of States that discriminate against and invite authorities of that State to the Republic of Panama and its scope is initiate talks and negotiations to correct that National Government, through the or eliminate discriminatory or restric- Cabinet Council, will decide on applica- tive measures in question and to pres- tion of these measures of retaliation. ent the arguments they deem appropri- The National Government may adopt ate to support their defense, and in this the following measures of retaliation: way maintain their international trade relations with the Republic of Panama. 1. Tax measures regarding the determina- tion of applicable taxes on dividends or re- 2. Obligation to maintain account- mittances abroad, which are paid or cred- ing records. ited as interest, royalties, commissions, Panama has made significant prog- fees or any other kind of income produced ress in relation to transparency. This in territory of Panama, including a withhold- is illustrated by the enactment of Law ing tax Of the Dividend Tax or participation 52 of October 28, 2016, which estab- fee for registered shares of 10 to 20% and lishes the obligation to maintain ac- bearer shares of 20 to 40%; Modifications counting records for legal entities that that will be made through the Fiscal Code. don’t carry out operations, consume or have their effects Within the Repub- 2. Tariff increase measures. lic of Panama likewise regulate the ef- fects of suspension of corporate rights 3. Other migratory and labor measures are and dissolution of said companies. also included for nationals of jurisdictions included in the list of discriminating States. The Law creates obligation that foun- dations and companies created in ac- 4. Restriction or suspension to natural or cordance with Panamanian regulations legal persons of the State sanctioned or in- and that don’t carry out operations that corporated in any other jurisdiction whose are perfected, consumed or have their final beneficiaries are nationals of the State effects within the Republic of Pana- sanctioned to participate in any public pro- ma (off shore) must maintain both re- curement process or granting of new con- cords as supporting documentation cessions, permits or authorizations, includ- for a period of not less than five years. ing trade, public services, Land, air or sea transport of extraction, exploitation of met- This regulation was created taking als or hydrocarbons, use of soil, subsoil, sea into consideration the terms of refer- floor and natural or renewable resources ence where international standards of any kind. The application of this restric- are established in matters of transpar- tion measure by the Cabinet Council means ency. The accounting records are an that person can’t participate, directly or indi- important measure to maintain better rectly in a public act or public procurement. controls and for the purpose of that there is complete transparency with 5. Restriction or suspension of movement respect to operations that are carried of cargo or passengers by land transport.
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