PANAMA - Economy
President, Nexia Auditores Panamá
Bio
Dr. Bartolomé Mafla Herrera, CPA, MT, h.c., is a distinguished professional in accounting and taxation with over 40 years of experience. A graduate of the University of Panama with a Cum Laude Master’s in Taxation, he is the Managing Partner at NEXIA, Vice President of NEXIA INTERNATIONAL for Latin America, and President of the Panamanian College of Tax Advisors. A founder of the National Tax Congress and active member in various commissions and associations, he is acclaimed for his contributions to the field and ongoing professional education.
I was previously a partner at the second-largest firm globally when the opportunity to bring Nexia to Panama arose. Nexia, founded in 1971 from a merger between an American and a London firm, impressed me with its quality. In 2005, a reputable US firm that became part of Nexia approached me, leading to our representation starting in 2006. With my experience in auditing and tax, I had the portfolio they needed. We quickly rose to the seventh place in the local market, and now, with 95 employees, we are fifth. We have clients from various industries, including those involved in the Panama Canal expansion. Despite a downturn during the pandemic, our loyal clients remained with us. We have many opportunities in Panama, Central America, and the Caribbean. Shortly after joining Nexia, I became president of the Central America and Caribbean subcommittee, bringing most firms into the organization. In 2018, I suggested merging Central America and the Caribbean with Latin America, which was approved. I became vice president of Nexia Latin America, a position I hold today.
We already provide services in sustainability, AI, and digital transformation. For example, we have started working with certain banks to offer artificial intelligence solutions. Additionally, we incorporate these services into our update seminars, which we conduct annually between January and February. I believe Panama will advance quickly in digital transformation and AI due to its geographical position, its role as a financial center, and its history as a service-oriented country. The adaptation to these technologies will be rapid, and we are already well-engaged in this process. One aspect of AI that needs to be highlighted is its impact on human capital, which is expected to fall significantly. For example, at our recent meeting in Cancún, Mexico, we evaluated a new audit software that has just been released. We are considering negotiations with an international company regarding this software, as it reduces the need for audit assistants. It has both positive and negative aspects. On the one hand, it speeds up processes significantly; tasks that currently take around 40 hours might be completed in under eight hours with this software. It also lowers costs. However, it is important to note that the accounting profession is currently facing a global understaffing issue.
The tax culture in Panama is currently virtually nonexistent. I have had the opportunity to visit highly developed countries where tax culture is introduced as early as kindergarten. In these countries, taxes are understood as the contribution each citizen makes for living in a country or city. Currently, the Ministry of Education in Panama has not focused on introducing a subject dedicated to tax culture, which would emphasize the responsibility of contributing as a taxpayer to maintain a good living environment. For example, the Singapore model starts with a different type of culture, which serves as a potential model for integrating tax culture into education. Together with our international firm, we are developing a study on the Singapore model. This will be a focus at our global meeting in Singapore this year, where we will explore many of the changes that have contributed to the country’s development. However, fostering a tax culture also involves ensuring that taxpayers receive appropriate benefits for their contributions, such as in education, health, and social security. This is the direction we are pursuing.
It is interesting because we audit many companies in the tourism sector. Panama has significant potential, starting with attractions like the Panama Canal. When we signed the document merging Central America and the Caribbean with South America, we held one of the events at the Miraflores Locks. Partners from various parts of the world, who had never seen the canal before, were impressed by it. Apart from the Panama Canal, the Republic of Panama boasts beautiful beaches and excellent hotels. Additionally, several hotel chains are interested in expanding into Panama. While Panama has had tourism incentives for over 20 years, there are still other areas that need development, including within various private universities. There is indeed a tourism degree available here, and we have skilled organizers in the field. The country possesses the natural resources and infrastructure necessary to boost tourism. With many expectations from the new government regarding tourism, we are confident that this will receive substantial support. I should mention that, even before the elections, three major tourism companies, all clients of Nexia International, visited Panama on referrals. We are currently finalizing the organization of a significant investment in Bocas del Toro.
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