Panama's MEF to Replace e-Tax System After $40 Million Fraud Scheme

Panama's Ministry of Economy and Finance (MEF) announced a comprehensive overhaul of its e‑Tax 2.0 platform after uncovering a tax‑credit fraud scheme that siphoned roughly US$40 million, known as Operation Pandora. The fraud involved insiders at the General Directorate of Revenue (DGI) who manipulated tax credits and diverted funds.

Minister of Economy and Finance Felipe Chapman said the government will replace the vulnerable e‑Tax system with a new, robust digital platform that records every procedure and enables real‑time tracking, eliminating manual steps that allowed manipulation. The MEF also froze all suspicious tax‑credit applications, dismissed officials linked to the scheme, and launched extensive internal audits and a review by the Comptroller General.

Chapman emphasized a zero‑tolerance policy toward corruption, pledging that those responsible will face judicial action while assuring continuity of tax services for the public. The modernization aims to strengthen transparency, protect public funds, and improve efficiency in tax administration.