Ahead of the G-20 summit, the British government is trumpeting a crackdown on tax evaders from certain countries. But some of the biggest tax havens may be found in the countries doing the whining. Stephen Beard reports. Listen to this Story
TEXT OF STORY Kai Ryssdal: President Obama landed in London this evening. He's there for a big economic summit that starts Thursday. Leaders of the world's top twenty economies are going to try to figure out how to stop the global slowdown. They'll talk about stimulus packages and tighter regulations. It's not clear what actually might come out of it. But the Brits have already declared one G-20 breakthrough: a crackdown on tax havens. So, what does that have to do with an economic crisis? From London, Marketplace's Stephen Beard explains. STEPHEN BEARD: Ten tax havens have apparently agreed to come clean. Switzerland, Liechtenstein, Luxembourg, and Monaco among them. They say they will share information about suspected tax evaders. The deal has been more than a decade in the making. But clinching it now could be a godsend for the U.S. and other big governments. Especially now. Tax revenues are shrinking; stimulus spending has taken off. Grace Perez-Navarro of the Organization of Economic Cooperation and Development: GRACE PEREZ-NAVARRO: In the midst of a crisis it's very difficult to raise tax rates. So what can governments do? All they can try and do is make sure they collect every penny that is legally due. And this is part of that initiative. But not everyone is impressed by the tax-haven breakthrough. Stephen Platt is a lawyer who prosecutes financial crime in offshore centers. He says the U.S., for one, should take a closer look in its own backyard. STEPHEN PLATT: There are several states within the United States itself that have very, very lax controls, that attract very shady business. Nevada, Wyoming and Delaware, he says, allow the kind of secrecy in which tax evasion flourishes. The kind of secrecy the U.S. denounces in the tax havens. PLATT: This, I think, reveals a hypocrisy. He says in some respects Britain is just as lax as America. And he claims Britain is bragging about the tax-haven breakthrough to distract attention from the regulatory failures in Britain and the U.S. that really caused the crisis. In London, this is Stephen Beard for Marketplace.
President Barack Obama will soon be making his first trip to Latin America to attend the Summit of the Americas. This visit is an important opportunity for the President to promote core U.S. values of democracy and freedom. Before his historic trip, President Obama should lay the foundation of these principles by signaling that his Administration will seek quick passage of pending trade agreements with Panama and Colombia that have long stalled in Congress and whose future is uncertain. Passage of these agreements would immediately strengthen the relationship with these important allies and signal positive U.S. economic engagement in this vital region. Our economy needs exports. Over 95 percent of the world's population lives outside of the United States. We must look beyond our borders to increase market access for U.S. businesses to grow and create American jobs. The Panama and Colombia free trade agreements (FTAs) will help level the playing field for U.S. exports of goods and services. In fact, today some 5,600 American businesses export to Panama. Over 4,000 of these are small or medium-sized companies. Passage of the Panama agreement will empower these companies to expand their market opportunities and in doing so boost U.S. exports - one of the few bright spots in the economy. President Obama should call on Congress to pass the U.S.-Panama FTA without further and needless delay. These FTAs would not only eliminate tariffs, boost U.S. exports and increase economic engagement, but they also would also solidify America's presence in Latin America, a key strategic region. Too often we forget that this region has been historically unstable. Today, we battle for the hearts and minds of the Continent against Hugo Chavez and his allies. Now more than ever, the United States must assist our Latin American friends and pass these pending trade agreements. With U.S. Trade Representative Ron Kirk in office, we should quickly advance the U.S. trade policy agenda. While labor unions have slowed action on the Colombian agreement, there is no reason to delay the Panama FTA. We face a pivotal decision: Does the United States promote policies that lead to domestic job creation, or do we pursue a protectionist agenda that sets an example of our Latin American allies that shuns the economic freedoms we have long sought? Plus with Panama, we have another strong reason to move quickly: Panama is soon accepting bids for Latin America's largest public works project - a multi-billion dollar modernization of the Panama Canal. The Panama FTA gives US companies an equal shot in this huge project.The Panama FTA should pass before the President's trip, but he can and should signal that he also wants action on the Colombia FTA. Given the Congressional move to protectionism on "Buy American" in the stimulus package and the treaty violating restriction on Mexican trucks in to the United States, President Obama needs something soon to calm the world that we are not closing our borders from the world. Passage of relatively non-controversial FTAs with our pro-democracy friends in is an obvious answer. If President Obama is serious about promoting our exports, if he is serious about tackling the ills of our economy, if he is serious about strengthening our friendships in Latin America, he must endorse the pending U.S. free trade agreements with Panama and Colombia and seek swift Congressional approval in Congress.
As 3 Cabinet nominees have withdrawn from their nominations because of tax problems and "honest mistakes", Senator Levin introduced S.506 - the 2nd version of the Stop Tax Haven Abuse Act (previously the 2007 Obama-Levin bill S.681). The bill targets Panama and other countries as offshore secrecy jurisdictions:
(b) Definition of Offshore Secrecy Jurisdiction- Section 7701(a) is amended by adding at the end the following new paragraph: `(50) OFFSHORE SECRECY JURISDICTION- `(A) IN GENERAL- The term `offshore secrecy jurisdiction' means any foreign jurisdiction which is listed by the Secretary as an offshore secrecy jurisdiction for purposes of this title.... `(E) INITIAL LIST OF OFFSHORE SECRECY JURISDICTIONS- For purposes of this paragraph, each of the following foreign jurisdictions, which have been previously and publicly identified by the Internal Revenue Service as secrecy jurisdictions in Federal court proceedings, shall be deemed listed by the Secretary as an offshore secrecy jurisdiction unless delisted by the Secretary under subparagraph (F)(ii): `(viii) British Virgin Islands. `(xi) Costa Rica. `(xii) Cyprus. `(xvii) Hong Kong. `(xviii) Isle of Man. `(xix) Jersey. `(xx) Latvia. `(xxi) Liechtenstein. `(xxii) Luxembourg. `(xxvi) Panama.
The Center for Freedom and Prosperity has pointed out that these initiatives only put US business at a disadavantage when they export overseas, because companies from other countries will use the advantage that tax havens provide them, thereby increasing the number of US jobs lost http://www.freedomandprosperity.org/dorgan-levin-facts/dorgan-levin-facts.shtml .
Five months after having entered into force the new Immigration Decree regulations of Executive Decree 320 of 2008, the government amended several of its articles, reported Tayra Barsallo, deputy director of the National Immigration Service. For example, it eased the requirements for visas for seafarers, extended the term of visas for temporary workers, and reduced the cost of extending visa for domestic workers, among others. The changes in Executive Decree 26 0f 2009 were published in the Official Gazette No. 26,238, yesterday Wednesday.
BudgetTravel.com reveals the best value hotspots for the New Year.
By BudgetTravel.com Editors, Monday, January 5, 2009 |
These countries are hardly undiscovered, but it's not too late to enjoy them either. Plan a trip in 2009, so you can say you knew these places before they were overrun.
Why in 2009: Panama has led tourism growth in Central and South American countries for two years running, posting back-to-back 20 and 30 percent gains in 2007 and 2008, respectively. Last year, the country surpassed the one-million-visitors mark, welcoming 1.2 million leisure travelers. That's about how popular Costa Rica was in 1999—before it emerged as a solidly mainstream destination. Compared with Costa Rica, Panama has more animal species and a larger amount of preserved terrain filled with colorful macaws, monkeys, and endangered shore birds.
Main events: The Panama Jazz Festival, held January 1–17, will feature saxophonist Wayne Shorter's quartet (panamajazzfestival.com, from $10). Panama's Carnival celebrations, running February 2–24, are some of the largest pre-Lenten parties in the world. The bulk of the parades and revelry will take place in Panama City and Las Tablas (visitpanama.com).
Memorable moment: Climb Cerro Jefe (Boss Mountain) in Chagres National Park, whose summit stands nearly 3,000 feet above sea level. When the weather cooperates, you can see the Panama Canal and both the Atlantic and Pacific oceans (visitpanama.com). Back in the capital, thread your way through the cobbled streets lined with Spanish mansions in the colonial-era district of Casco Viejo, used as a stand-in for Haiti in many scenes inQuantum of Solace.
Price check: American Airlines Vacations has a three-night winter stay at the Veneto Hotel & Casino from $87 per person per night (aavacations.com). Keep a lid on costs by booking at locally owned inns. Among TripAdvisor's top rated B&Bs in Panama is La Estancia (011-507/314-1581, bedandbreakfastpanama.com, from $75 for singles and doubles). It's on a hill next to a nature reserve.
Gil: Following is the issue in more detail along with key articles and web links. Grand Panama International, a member of the Chamber of the Americas is asking for your personal action on this matter as it greatly scars the Panama market for US Citizens and businessmen.
To help you understand the level and kind of abuse currently being endured by US Citizens and American business interests in Panama, and related damage to Panamanian charities formed to meet the pressing needs of the children of Panama, I ask that you read a series of articles in US media outlets such as Time Magazine, The New York Times, LA Times, and others. The attempt to steal the large estate of Wilson Lucom, a former assistant to the US Secretary of State, has been well covered in various US media outlets. The first of these is in Time Magazine: http://www.time.com/time/magazine/article/0,9171,1680177,00.html The second of these is in the International Herald Tribune: http://www.iht.com/articles/2008/06/24/america/panama.php The third can be found in the Los Angeles Times: http://latimesblogs.latimes.com/laplaza/2008/06/millionaire-lea.html
To understand how a wealthy Panamanian family and their corrupt attorney have abused the legal system in Panama, including the bribery of various officials, you can see the detailed account entitled “Report to the Attorney General of Panama” which can be found at: http://www.lucom-ninospobresdepanama.com/LUCOM_english.html
It is important to note that in November 2008 the head of the Panama Governments National Council of Transparency for Corruption, Alma Montenegro de Fletcher, published a finding that found “extreme abuse of the Panamanian civil and penal system”, noting the false arrest of a US Citizen who was defending the interests of the children of Panama, Mr. Richard Lehman, a Florida attorney and long time friend and lawyer for Wilson Lucom. The details of Alma’s letter to the Panama Supreme Court can be found at the following (translated) website:
In order to understand the critical and dangerous nature of the ongoing corruption, one needs to read how the organizer of a march on the Panama Supreme Court building organized by Mr. Lehman on behalf of the children of Panama was shot within days of the march. See: http://panamaexpatriates.blogspot.com/2008/06/interview-with-hector-avila-june-18.html
Fast forward to February 2009, Mr. Lucom’s Florida attorney, Richard Lehman, the US Citizen and trusted friend and attorney of Wilson Lucom, flies into Panama to meet with the Panamanian charities organized to accept the bequeath of Wilson Lucom on behalf of the poor and orphaned children. When he tries to depart Panama City to return to the US, Mr. Lehman is removed from the US plane, and placed under false arrest at the airport, waiting 16 hours for the “problem with immigration” to be clarified. Then it turns out that the head of Immigration finds there is no cause, yet a week later Mr. Lehman still cannot leave Panama because the airport authorities keep changing the basis for the detention and the Judge that can verify that there are no legal arrest warrants will either not meet with Mr. Lehman or provide him the necessary releases.
If you found yourself under arrest at a foreign airport, you would immediately call the US Embassy—right? So did Richard. Unfortunately, no one at the Embassy would answer the after-hours “Emergency” number (which is always answered at any Embassy, by the Marine guard if necessary) and when the phone is finally answered at 8am the next Monday, the operator indicates she does not have any idea how to help and will find the “Officer of the Day”. When the OD comes on line, they inform Mr. Lehman that they “don’t have any idea how to help him”. (The proper response is always, I do not know how to handle this but I will find out. How can I get right back to you)? The Embassy staff later claims that it is “judicial matter”, and they cannot help…even though Lehman’s Florida Congressman had sent the US Ambassador personal letter months ago fearing for the safety of Mr. Lehman. When others complain on Mr. Lehman’s behalf, they are told that Mr. Lehman is staying at a hotel as if that was good enough.
What were the US Government excuses for not acting immediately in defense of this US Citizen?
First, it is that the individual at the center of the Probate dispute, Wilson Lucom, “was not a US Citizen” as he had given up his US Citizenship when he move to Panama. So what!!! Richard Lehman is a US Citizen. Wilson Lucom’s only legally adopted child, Isabel Clark is the first in line to inherit her father’s estate under Panamanian law. She is a US Citizen living in California, and she can’t get the Courts to recognize her rights, nor can she get the State Department to act in defense of Mr. Lehman.
The US investors that purchased the largest asset in the Lucom estate, a 7,000+ acre waterfront ranch on the Pacific Coast of Panama, are US Citizens and the Panamanian courts are ignoring their legal claims and positioned their suit under a Judge who has at least twice before been censured for corruption. So much for the “equal access under the law” rights of US Citizens and US business interests in Panama. They are being abused by the corrupt legal system in Panama—confirmed by their own Transparency Commission—and the Embassy responds that they can’t get involved because “Wilson Lucom was not a US Citizen”. How ridiculous!
The next excuse is that “there are Probate disputes in the US as well”. My heavens, how does that apply to this? In the US, those Probate disputes have not been characterized by the US government itself as corrupt and an “extreme abuse” of the US civil and penal system!
What is going on? Perhaps it has to do with having a new American Ambassador in Panama who does not want to take a firm stand early on with the Panamanian Government.
Perhaps it has to do with the State Department not wanting to take any action that would endanger the US-Panama free trade pact that is currently before the Congress…which action this type of corruption and legal system abuse should call into question.
Perhaps it is just the terrible twins of ignorance and complete incompetence of behalf of the new Ambassador and her staff.
What is certain is that the “story line” being propagated by the US State Department Panama Desk and the US Embassy in Panama do not comport with the well documented history and clear facts in this heinous situation.
What is clear is that US Citizens and US business interests are being consistently abused by a corrupt Panamanian legal system and that US Citizen civil rights are being ignored by Panamanian authorities with impunity, while the US Embassy looks on washing its hands of any meaningful involvement (“Pilatos” in Spanish).
What is clear is that a well established Panamanian oligarchy can manipulate a corrupt legal system and culture and steal the lifelong estate of a former US Citizen, and from the orphans of Panama and other US interests, to keep their station in life – all as if the Noriega regime was still in power.
What naturally follows such blatant abuse is that every US Citizen and US businessman must worry about who will protect their investments and estates in Panama if the Panamanian legal system can be so completely corrupted and the US Government so clearly unwilling to act to protect US Citizens and businessmen.
What is clear is that every American citizens and businessmen who do not want this to happen to them, must take immediate action to get the US Government actively involved in protecting the rights of US Citizens and US business interests in Panama—and do it now!
I ask your support in contacting all Colorado Congressional and Senate staff to inform them of these recent dangerous events and prompt them to demand proper answers from the State Department and the US Embassy, Panama, of why they are not actively involved in protecting this US Citizen and others, along with other US business interests in Panama.
I also urge you, on behalf of the Chamber, to call/write the US Ambassador in Panama, Barbara Stephenson, 011-507-207-7000, general email: panamaweb@state.gov to find out why Mr. Lehman did not receive immediate and meaningful support and intervention in what is a very public corruption case documented as so by the head of the Panamanian Commission on Transparency and Corruption herself.
I also urge you to call the State Departments Panama Desk Officer, Marcia Singer, 202-647-3505, singerml@state.gov, and add your rejection of their simple minded excuses for inaction as well.
Gil, this is a serious matter that will damage Panama as well as those who have or will invest in Panama.
This is the list of Panama City Municipal offices where 2009 car plates are available depending on the ending of their numbers. ______________________________________________________________________
STEPHEN PLATT: There are several states within the United States itself that have very, very lax controls, that attract very shady business.
