Tax man closes in on Panama's yacht owners

[Judi Lynn]

Tax man closes in on Panama's yacht owners
(7 May 2010)
By IBI Magazine

Panama President Ricardo Martinelli has ordered tax authorities to start collecting duties on the importation of yachts. A tax loophole has allowed the majority of Panama's yacht owners to import yachts without paying taxes. The country has 1,900 yachts but, according to La Prensa, only 100 of them have paid import duties.

The paper said that most local yacht owners avoid paying import taxes by either registering the vessel outside Panama or classifying it as part of an "international service" category. The Customs Brokers Association said that tax receipts for imported yachts are almost non-existent, adding that the problem has moved to commercial vessels.

Martinelli has ordered that the loophole in the tax code be closed in order to generate more revenue for the government.

http://www.ibinews.com/ibinews/newsdesk/20100407135615ibinews.html

http://www.scottdewey.com.nyud.net:8090/mediac/450_0/media/snooty.jpg

How dare he tax our yachts.

[naaman fletcher]

1. The international registration game..

Is played all over the world, and it's hard for government to do anything about due to various vagaries of international law, unfortunately.