Panama to Scrap e-Tax System and Overhaul Tax Agency After $40M Fraud

Posted on 2026-08-04

Panama's Ministry of Economy and Finance (MEF) has announced a comprehensive technological overhaul that includes replacing the e-Tax platform with a more robust digital system. The decision follows the discovery of an irregular tax credit fraud scheme exceeding $40 million.

The new digital infrastructure aims to enhance transaction traceability, eliminate vulnerable manual procedures, and strengthen transparency in the administration of public funds at the Directorate General of Revenue (DGI).

Legal Actions and Internal Controls at the DGI

The announcement was made by the Minister of Economy and Finance, Felipe Chapman, in an official video message published across MEF channels.

During his address, Chapman confirmed that the national government has launched an immediate action plan to address the breach:

• Legal Action: Filing formal complaints with law enforcement authorities to prosecute those responsible for the fraudulent scheme.

• Internal Controls: Implementing immediate internal oversight protocols within the DGI to secure institutional workflows.

• Technological Modernization: Permanently phasing out the e-Tax system to eliminate software vulnerabilities.

Guaranteed Continuity of Tax Services

Despite the planned system overhaul and ongoing criminal investigations, the Ministry confirmed that services for taxpayers will continue without interruption nationwide.

Minister Chapman emphasized that those responsible will face full legal consequences, while noting that the vast majority of public servants within the agency perform their duties with honesty and dedication. He assured taxpayers that core operations will remain fully functional during the transition to the new digital platform.