Panama vs “Oil Export S.A”, May 2019, Administrative Tribunal, TAT-RF-057

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“Oil Export S.A” Panama, was issued a fine of $ 1 mill. for not filing Transfer Pricing Report – Form 930 – for the fiscal year 2012.

Article 762-I of the Tax Code in Panama establishes that

“Failure to submit the report shall be sanctioned with a fine equivalent to 1% of the total amount of the operations with related parties. For the calculation of the fine, the gross amount of the operations shall be considered, regardless of whether they are representative of income, costs, or deductions.”

The fine referred to in the paragraph shall not exceed one million balboas (B/.1,000,000.00).

The decision of the Court

“Consequently, since it has been demonstrated that —[“Oil Export S.A”]— did not comply with the formal obligation to submit the Transfer Pricing Report contained in Article 762-I of the Tax Code, the Tax Administration considers that it is appropriate to confirm Resolution No. 201-1429 of 24 October 2014 and its confirmation act.”

Click here for English translation

TAT-RF-057 de 22 de mayo de 2019

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