Tax News Update    Email this document    Print this document  

June 15, 2023
2023-1068

Panama Tax Authority establishes procedure for closing commercial establishments that fail to comply with obligation to issue and/or keep invoices or receipts

  • A Resolution issued by the Panama Tax Authority establishes the procedure for applying penalties that lead to the temporary closure of commercial establishments that fail to comply with the obligation to issue and/or keep invoices or receipts.
  • The new procedure aims to generate greater transparency in the processes of tax compliance control.

The Panama Tax Authority issued Resolution No. 201-4983 on 2 June 2023, implementing a procedure for applying penalties for failure to comply with obligations to issue, demand and/or keep invoices or receipts, based on the paragraph 3 of article 11 of Law No. 76 of 1976.

In applicable cases, the Tax Authority will issue a resolution to impose an economic penalty on the taxpayer based on the law and will order the temporary closure of the commercial establishment in which the taxpayer incurred the infractions.

For the temporary closure of the establishment, the Tax Authority staff will personally notify the taxpayer or the person in charge of the commercial establishment where the services are provided or where the products are sold and will proceed to close the establishment. For this purpose, a seal and/or tape will be placed at the entries of the establishment to ensure its closure.

Notwithstanding any appeal that the taxpayer could file contesting the resolution that orders the closure, the temporary closure of the commercial establishment will cease once the taxpayer corrects the irregularities established in the sanctioning resolution and pays the corresponding fines.

If temporary closure of a commercial establishment was ordered and the taxpayer nonetheless continues to operate, the taxpayer's actions will be understood to be a second-time offense, which will lead to the imposition of a fine ranging from USD10,000 to USD25,000 and the temporary closure of the commercial establishment.

____________________________

For additional information with respect to this Alert, please contact the following:

Ernst & Young, Panamá

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement