Amid diplomatic friction sparked by the Netherlands blacklisting Panama as a tax haven, authorities in the Central American country are probing tax breaks granted to the local subsidiary of a Dutch shipping company.
A spokesperson for VT Group, an inland tanker operator headquartered in Rotterdam, said the company is unaware of the Panamanian tax probe referenced in a document obtained by OCCRP.
"We are checked by the government on a regular basis, almost yearly, and we have not been found to be doing anything illegal. We’ve complied with all licensing and regulatory requirements since our operations began in 2009," the spokesperson said over the phone.
A lawyer for the Dutch company’s Panamanian subsidiary, VT Shipping International Inc., provided OCCRP with a copy of its tax exemption issued by the Ministry of Economy and Finance.Â
In an August 17 letter obtained by reporters, the Panamanian Public Prosecutor’s Office asked the country's tax authority, the General Revenue Directorate, for information about VT Shipping’s financial accounts.
The letter was sent three months after the election of Panamanian President JosĂ© RaĂşl Mulino, who has publicly pushed back against his country's reputation as a hub for tax evasion and money laundering.Â
Mulino welcomed a July court decision to acquit 28 people facing charges related to the Panama Papers, a 2016 journalistic investigation based on documents leaked from the law firm Mossack Fonseca, which was accused of enabling corruption.
The impact of the investigation — coordinated by the International Consortium of Investigative Journalists — was felt around the world, prompting corruption probes in some countries, and the resignation of Iceland’s prime minister.
Anti-corruption activists questioned the judge’s decision to drop the case, which began almost eight years after the scandal broke. But Mulino called the Panama Papers “an international hoax to undermine the image and competitiveness of our country.”
Lately, Mulino has taken aim at the Netherlands in particular. Similar to the European Union, the Netherlands has created its own list of countries accused of allowing companies to pay little or no tax, including Panama.
In an October 30 post on X, Mulino warned that Dutch companies would no longer “be able to participate in any type of public tender or contract.”
“I strongly reject the inclusion by the Netherlands of Panama on its blacklist for tax issues,” he said.
The Panamanian newspaper La Prensa reported that prosecutors visited the General Revenue Directorate on Tuesday seeking documents about tax exemptions granted to VT Shipping.Â
The lawyer for VT Shipping said the company has met all legal requirements for its business delivering fuel by barge.
“The activities performed by VT Shipping, as authorized by its Permit to Supply Petroleum Products via Barges, are tax exempt… This has been further recognized by the Panamanian Tax Authority,” the lawyer said in an emailed response to questions.