Constitutional Precedent: Financing a real estate project does not make the Bank a supplier in a consumer relationship
Background and Procedural Conflict In a Consumer Protection case, the Ninth Circuit Civil Court, in Judgment No. 12-15 of March 14, 2025, jointly and severally ordered the developer, the trust company, and the bank to pay a sum of money, interest, and costs. Subsequently, the Third Superior Court modified the judgment solely to exclude the […]
Tax Fraud in Panama
Key aspects of the Tax Procedure Code As of May 14, 2020, the provisions of the Tax Procedure Code relating to administrative tax evasion and criminal tax fraud in Panama came into force; establishing the conduct considered illicit, the competent authorities to investigate them and the procedural guarantees of taxpayers. Difference between administrative tax […]
Administrative Cancellation of Companies in Panama
Panama has strengthened its corporate regulatory framework with the aim of streamlining the company registry. In this context, companies that remain inactive or in prolonged non-compliance may face the risk of suspension of corporate rights, provisional dissolution, and even permanent cancellation. Application – relevance In accordance with Executive Decree 905 of September 20, 2019, and […]
NULLITY OF ACTS OF THE TAX ADMINISTRATION, DUE TO VIOLATION OF TAXPAYER RIGHTS
When the Tax Administration issues an administrative act without observing the legally established procedure or in excess of the powers conferred upon it, the taxpayer may request a declaration of absolute nullity. A. Nullity by operation of law Absolute nullity is the sanction imposed on a flawed administrative act; unlike relative nullities that can be […]
The Crime of Embezzlement
This crime is addressed in Chapter I of Title X of Book II of the Penal Code, in the following article: “Article 338. Any public servant who embezzles or misappropriates in any way, or consents to another person appropriating, embezzling, or misappropriating in any way, money, securities, or property whose administration, collection, or custody has […]
Crimes of Abuse of Authority and Breach of the Duties of Public Servants
These crimes are discussed in Chapter VI of Title X of Book II of the Penal Code, in the following articles: “Article 355. A public servant who, abusing his position, orders or commits an arbitrary act against any person, not specifically defined in the criminal law, shall be punished with imprisonment of one to […]
Criminal Proceedings – Defense of the Company
Legal Framework – Accusatory Criminal System: It operates under the principles of orality, concentration, strict equality of arms, immediacy, and adversarial proceedings, being primarily a system focused on guaranteeing respect for the rights of the person under investigation to counterbalance the disadvantage of facing accusations from an authority with power and authority. Decisions that could […]
Seizure in the New Civil Procedure Code
Procedurability: The danger of delay must be proven (urgency to avoid irreparable damage or the ineffectiveness of the judgment due to the passage of time or dissipation and/or transfer of assets) and appearance of good right (prima facie showing legal basis and probability of success of the claim). The application must identify the object (goods […]
Registration and Updating of Legal Entities and Their Beneficial Owners in Panama
Our country has strengthened the regulatory framework on tax transparency and the prevention of illicit activities by updating the information of legal entities and their beneficial owners with the Superintendency of Non-Financial Entities (hereinafter the “SSNF”). Non-Financial Obligated Entities (SONG): Natural or legal persons who, due to the nature of their professional, commercial, or […]
Expiration of the proceedings in the new Civil Procedure Code
Concept Expiration of the proceedings occurs when, due to inactivity by the parties, the proceedings are presumed to have been abandoned within the applicable legal period, depending on the type of proceeding. It penalizes inaction, especially by the plaintiff, and seeks to prevent the accumulation of files without movement in the judicial system; therefore, a […]