Company: LLORENTE & CUENCA, PANAMA, PANAMA CITY
Company Description: LLORENTE & CUENCA is the leading Public Relations consultancy firm in Spain and Latin America, with nine wholly-owned offices, supplemented by affiliate relationships in five countries. Founded in 1995 by Olga Cuenca and José Antonio Llorente, LL&C offers a comprehensive strategic consultancy service with more than 300 specialists in the different areas of communication.
Nomination Category: Corporate Communications, Investor Relations, & Public Relations Categories
Nomination Sub Category: Best Communications Campaign

Nomination Title: Encouraging the Tax Culture Campaign - Panama 2006

   1. Tell the story about this nominated communications program (up to 500 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms. Be sure to mention obstacles overcome, innovations or discoveries made, and outcomes:

          During the last 2 years, the Income Tax Bureau in Panama has carried out
          improvements to enhance tax collections. Despite its investment in technology,
          staff training, stricter controls and on-line statements, it could not
          increase tax revenue or voluntary income tax payment because of cultural
          behaviours. Many taxpayers still believed they could avoid paying tax.
          
          At that time, taxpayers perceived the Panamanian Tax Bureau as inefficient,
          obsolete and non-transparent. On the other hand, some taxpayers thought that
          the system was unfair and non-egalitarian; therefore, they believed they could
          evade paying tax without incurring any penal-ties.
           
          In 2007, LLORENTE & CUENCA undertook the management of the communication of
          Tax Campaign in order to encourage the tax culture among taxpayers. Through
          specific actions, they positioned the Tax Bureau as a modern, transparent,
          fair, technological institution, which has friendly on-line procedures,
          effective audits and egalitarian processes for everyone. Taxpayers cannot
          avoid their responsibility, regardless of who they are. 

          The team led the communication divided in 2 phases. The first was to position
          the Tax Bureau as a modern institution, the second one aimed at encouraging
          the taxpayers to fully declare their income taxes and raise the awareness of
          effective tax inspections.

          Because of the execution of this PR strategy, LLORENTE & CUENCA set out to
          position the Panamanian Tax Bureau as a modern institution, with transparent
          processes and effective audit. They also aimed to increase the collection of
          taxes, and encourage voluntary tax payment for the first time in Panama.

          Aims

          • Going up the sense of responsibility, convenience of tax system for
          the taxpayers, strictness and fair process.
          o            Giving information about the easy on line procedures as well as others
          amenities.
          • Increasing in the awareness of the Tax Bureau and showing a change of
          paradigm about that Institution.
          o            Disclosing information about its efficient and electronic audits
          • Making the taxpayers aware of the positive impact on the Panamanian
          society of the fiscal fulfilment.
          o            Showing the social work done with the taxpayers contribution

          Principal challenges

          The major obstacle of the campaign was to change the pattern of Panamanian
          behaviour regarding income tax payment, as well as, improving the Panamanian
          Tax Bureau and its effective audits.

          On the other hand, the Income Tax Bureau had never lead the communication
          process during the Tax Campaign before, and the team which consisted of
          LLORENTE & CUENCA, Tax Bureau’s director and staff members took the advantage
          to open up the communication channel with journalists and generates good will
          with mass media. The last decision contributed to have constant positive media
          coverage in newspapers and weekly publications.

          Outcomes

          After more than 180 publications in printed media, obtained from 39 press
          releases, interviews, gathering with reporters/taxpayers and other actions,
          the Tax Bureau increased its register with more 7,000 new income taxpayers.

          At the end of the PR Campaign, the Tax Bureau received 11,778 new Tax
          Declarations compared with the previous year. The number of Income Tax
          Declarations submitted on-line in-creased by 173.2% from 2005.

   2. List hyperlinks to any online news stories, press releases, or other documents that support the claims made in the section above. IMPORTANT: Begin each link with http://, and enclose each link in square brackets; for example, [http://www.youraddress.com]:

          http://madrid.llorenteycuenca.com/publico/Stevie Awards 2008/

   3. Provide a brief (up to 100 words) biography about the leader(s) of the team that carried out this nominated communications program:

          Germán Pariente joined LLORENTE & CUENCA in 2005 where he specialized in
          Communication Crisis. In Spain, he provided strategy advice to Tobacco
          Manufacturers Association during a crucial moment for that industry. In 2006,
          he joined LLORENTE & CUENCA Panama staff as Managing Director. During this
          time, Pariente has advised relevant projects as the acquisition of Grupo
          Financiero Uno by Citigroup, contract firm between London Regional &
          Properties and the Panamanian Government; Income Tax Bureau Campaign. He
          regularly collaborates on communication process of the leading clients in
          Panama like CH2MHill, Maersk, Petaquilla Minerals, Telefónica Panamá, Ricardo
          Pérez, S.A. – Toyota and others.