Panama investigates multi-million dollar tax fraud scheme

Panama's tax authority, the Dirección General de Ingresos (DGI), is at the center of a sprawling fraud investigation involving millions of dollars. The scheme, divided into three distinct operations, E-Tax 2.0, Publicano, and Pandora, allegedly manipulated the tax system to generate fake tax credits and erase substantial debts.

These operations, which began to take shape following a complaint in April 2023, involved both public officials and private citizens. The Pandora operation, the most extensive to date, is investigating approximately $40 million in alleged money laundering and has linked 21 individuals. The E-Tax 2.0 operation resulted in the detention of four officials for allegedly creating fictitious tax credits, while Publicano led to six indictments and two plea agreements.

Collectively, the investigations have seen 17 individuals indicted in the Pandora case alone, with 14 in provisional detention and three under house arrest. The Ministry of Public Works confirmed that suspicious tax credits are suspended and some officials have been separated from their posts. The probe has uncovered a criminal organization allegedly formed by private individuals and DGI officials, accused of erasing tax obligations within the E-Tax system for taxpayers who had already settled their accounts. Authorities seized technological equipment and documents during 23 raids across several provinces.

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