Panama DGI tax fraud scandal spurs reform push

Investigations into Panama’s Dirección General de Ingresos (DGI) uncovered a scheme that manipulated the E‑Tax 2.0 system to create fictitious tax credits, which were then sold to a credit entity and third parties. Authorities estimate the fraud caused a loss of roughly $40 million to the state. Sixteen suspects—including current and former officials, lawyers and bankers—have been detained, and dozens of raids seized electronic equipment and documents across several provinces.

The Panama Business Executives Association (Apede) called the case a catalyst for deep restructuring of the tax administration, urging the creation of an autonomous agency with stronger technical, financial and operational independence. Minister of Economy and Finance Felipe Chapman said the episode will not affect overall state revenue and highlighted ongoing steps to tighten controls and adopt international best‑practice guidance.