Paola Vargas – Citi

When Paola Vargas began her legal journey, she was drawn to the law and the structure and logic behind tax systems. After studying tax law and working in administrative legal issues, she transitioned into a boutique firm specializing in taxation—laying the foundation for a career built on understanding the nuance and complexity of tax compliance. From there, she joined EY for three years, refining her advisory skills and expanding her exposure to international tax dynamics.

The leap to Citi came when she was offered the opportunity to lead advisory and litigation for Panama, El Salvador, and the Dominican Republic. The transition marked a significant shift—not just in responsibility, but in impact.

“This has been an important challenge,” Vargas says. “Although the tax base is similar across the region, each country applies tax differently depending on its policy, making it very dynamic.”

Now, as the head of advisory and litigation at Citi’s Tax Centralization Unit (TCU), she oversees tax compliance and litigation across eight countries: Panama, El Salvador, the Dominican Republic, Costa Rica, Peru, Haiti, Guatemala, and Honduras. Her primary goal is to reduce legal and financial risk by ensuring Citi’s complete transparency and alignment with local tax administrations.

“My role is to ensure the bank is as compliant as possible,” she explains. “I want to reduce the risk of sanctions, improve our relationships with regulators, and show that Citi always operates with integrity.”

Building tax solutions

At Citi, Vargas has emerged as more than a legal advisor—she’s a trusted partner to business leaders. Her approach focuses on bridging the gap between risk mitigation and strategic enablement.

“Even though my role is a control function, I like to help the business move forward,” she says. “The best achievement is when others in the company feel I am their ally, helping them find secure paths to close deals.”

One of her most notable achievements has been leading Citi’s implementation of electronic invoicing systems in Panama and El Salvador—a multi-year initiative now expanding to the Dominican Republic and soon, Honduras. The goal? To improve regulatory compliance while maintaining operational fluidity across jurisdictions.

In these projects, Vargas served as de facto project manager, coordinating with technology teams, evaluating system providers, and keeping stakeholders informed. Her role extended beyond legal review—she led cross-functional teams, solved technical challenges, and laid the groundwork for replicable success across the region.

“In Panama, where banks weren’t previously obligated to implement e-invoicing, we had to build the process from scratch,” she recalls. “That included determining how to invoice each product, analyzing tax implications, and adapting systems to support compliance.”

By taking the initiative, Vargas helped position Citi as a model taxpayer in the eyes of tax authorities.

“Our aim is to be seen as the best-behaved student in the class,” she says. “We want tax administrations to know they can trust our numbers and transparency.”

These efforts go beyond country-specific compliance—they support Citi’s broader strategy of maintaining regulatory trust, minimizing disputes, and setting a gold standard for financial institutions across Latin America.

A culture of growth, resilience & balance

Vargas’s success at Citi is not just about her technical knowledge—it’s also about her mindset. Promoted to vice president within a year of joining the company, she has embraced Citi’s challenging yet rewarding culture, where growth comes through promotions and exposure to increasingly complex jurisdictions and emerging issues.

“I thought after three years I’d have everything figured out,” she says, “but Citi continues to teach me new things. I’d love to have more countries in my scope—each adds a layer of insight that enriches my understanding.”

Her ability to identify patterns across jurisdictions has been a key asset. If an issue arises in one country, she immediately evaluates whether it could impact others. This regional perspective allows Vargas to anticipate risks before they escalate, creating a more unified strategy across the organization.

“Tax is complex,” she notes. “But if you analyze issues cross-jurisdictionally, you can solve problems proactively and build a stronger framework across the entire region.”

Outside the office, Vargas finds balance through weightlifting, yoga, and hikes. Her two-year-old French bulldog also helps keep her grounded.

“Exercise clears my mind and helps me de-stress,” she says. “It’s essential when managing eight countries and dozens of projects.”

As for the future, Vargas is focused on professional and personal growth. She’s not chasing titles but opportunities to expand her knowledge and support Citi in new ways.

“I want to continue evolving,” she says. “Each new jurisdiction gives me a complete view of how tax systems operate. That cross-knowledge is what fuels my passion for this work.”