In what’s being hailed as the most extensive data journalism leak in the history of news, over 11.5 million documents and 2.6 Terabytes of data has been leaked from the databases of Mossack Fonseca, the world’s fourth largest offshore law firm. The data shows how the world’s richest celebrities, politicians and businessmen use offshore havens to avoid taxation.
The ‘Panama Papers’ were obtained from an anonymous source by German newspaper Süddeutsche Zeitung and were shared subsequently with other news outlets by the the International Consortium of Investigative Journalists.
They show details about 14,000 clients (including politicians, celebrities, sportsmen etc.) and 214,000 companies registered for the purpose of evading taxes.
Technically, there’s nothing illegal about using offshore firms but serious questions are going to be raised regarding the ethics of using these companies for tax evasion.
In various markets, including the USA, setting up an offshore firm for the sole purpose of evading tax is illegal.
According to The News, the following people are involved in using offshore tax havens.
Some highlights from the Panama Papers are:
While the company has denied all allegations, over 370 journalists from 100 news organizations have spent one year on verifying the documents.
A global summit of world leaders on the topic of tax havens is set to be conducted next month. It’s going to be interesting to see how it fares with many participants and their associates guilty of evading tax through offshore companies.
We should mention that this trove of documents is more extensive than the Wikileaks and Snowden revelations. As time passes and more of them are verified, we will get further insights into the wrongdoings of the rich and famous in the world, including our very own political leadership.
via Guardian