Thread: Panama Seizes Mexico Company ICA Funds

Latin American Herald Tribune - PANAMA CITY -- Mexican construction and engineering firm ICA, which operates a toll highway in Panama, called for respect for the rule of law after a portion of its capital was seized in a dispute with Panamanian tax officials. According to the company, the cautionary measure taken in response to "alleged tax crimes" being investigated by the Panamanian courts, "presents a bad image (of the country) to investors who have deposited their trust in Panama." In a statement made public Thursday, the company said that the differences are the result of "a misunderstanding" over "the criteria adopted to calculate taxable income" from its operations in the country, where ICA has been present since 1996. (more)


The company said it has rigorously met its tax obligations and that the cautionary measure taken - which, according to the local press, involved the sequestration of some $2 million - was "unnecessary and excessive."


Panama's Attorney General's Office told Efe that legal proceedings against ICA were being brought by Panama's tax revenue agency, or DGI, a division of the Economy Ministry.


The DGI, meanwhile, said that information about the company's tax status and records are subject to strict confidentiality requirements.


In its statement, ICA Panama said the revenues it has collected from operation of the highway - a road known as Corredor Sur that alleviates traffic toward the east side of the city - "are perfectly well known by the (Panamanian) authorities."


The company said it will abide by whatever rulings are forthcoming in the matter, with the "confidence" that authorities will act "within the framework of legal security" that should prevail in the country.


The government's contract with the Mexican company calls for ICA to hand over toll collection duties to the state once the firm has recouped the money it invested in building the highway, estimated at roughly $300 million.

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It will be interesting to see how it all plays out.

differences are the result of "a misunderstanding" over "the criteria adopted to calculate taxable income" from its operations in the country

More like hiding your profits and paying less tax... ICA is a big name... $2 million will not harm them much... But they should be careful about the $300 million they invested there. Don't know which side I should take here..