I guess we already suspected this kind of setup anyway but: A huge leak of confidential documents has revealed how the rich and powerful use tax havens to hide their wealth. Eleven million documents were leaked from one of the world's most secretive companies, Panamanian law firm Mossack Fonseca. They show how Mossack Fonseca has helped clients launder money, dodge sanctions and evade tax. The company says it has operated beyond reproach for 40 years and has never been charged with criminal wrong-doing. The documents show links to 72 current or former heads of state in the data, including dictators accused of looting their own countries. Gerard Ryle, director of the ICIJ, said the documents covered the day-to-day business at Mossack Fonseca over the past 40 years. "I think the leak will prove to be probably the biggest blow the offshore world has ever taken because of the extent of the documents," he said. Russian connection It also reveals a suspected billion-dollar money laundering ring that was run by a Russian bank and involved close associates of President Putin. The operation was run by Bank Rossiya, which is subject to US and EU sanctions following Russia's annexation of Crimea. Iceland connection Mossack Fonseca data also shows how Icelandic Prime Minister Sigmundur Gunnlaugsson had an undeclared interest in his country's bailed-out banks. Mr Gunnlaugsson has been accused of hiding millions of dollars of investments in his country's banks behind a secretive offshore company. Full Story here
It's effect is spreading Iceland Iceland’s prime minister is this week expected to face calls in parliament for a snap election after the Panama Papers revealed he is among several leading politicians around the world with links to secretive companies in offshore tax havens. The financial affairs of Sigmundur Davíð Gunnlaugsson and his wife have come under scrutiny because of details revealed in documents from a Panamanian law firm that helps clients protect their wealth in secretive offshore tax regimes. The files from Mossack Fonseca form the biggest ever data leak to journalists. Opposition leaders have this weekend been discussing a motion calling for a general election – in effect a confidence vote in the prime minister. Full story Here Revealed: the $2bn offshore trail that leads to Vladimir Putin A network of secret offshore deals and vast loans worth $2bn has laid a trail to Russia’s president, Vladimir Putin. An unprecedented leak of documents shows how this money has made members of Putin’s close circle fabulously wealthy. Though the president’s name does not appear in any of the records, the data reveals a pattern – his friends have earned millions from deals that seemingly could not have been secured without his patronage. The documents suggest Putin’s family has benefited from this money – his friends’ fortunes appear his to spend. Full story Here
My GS is all over this leak. I can't stand it! It's making me so mad I am going to stick my head in the sand regarding this for awhile.
Here we go again in a rush to involve Vladimir Putin they have not found his name in the papers yet others associated with Putin yes but not his. Whose picture appeared in all the news media was his. Far from honesty in the main street media.
Who best to know how to get around laws than those who have carefully crafted and written those laws, and those who have collaborated with them on how to get past existing regulations? I have little faith in the financial system or Congress, in the case of the United States, and it appears other governments function in much the same way. Obviously those who sit at the top have taken care to ensure they will never be dethroned. Even when they leave their positions, their futures are secured by the funds they've squirreled away, while the everyday Joes faithfully pay their taxes, or face consequences for not doing so.
It seems that the persons that were targeted fell into a certain category and they are withholding some papers. It is interesting to find out who was behind the leak. The old saying they are no good deed that goes unpunished. The government that through the banker in jail is one of the people in the papers.
These are the self-same people that unconditionally condemn so-called benefit scroungers. The gap between falsely claimed benefits and tax avoidance is gargantuan. We, the great unwashed, pay our taxes so that the great and the good (ha!) can send their offspring to private schools. And people wonder why I'm a socialist...
I agree Tom but sadly despite the magnitude of these revelations, I personally don't feel anything will change. Yes the media will have a field day, a few more newspapers will be sold and lots of internet ranting will go on, the various governments will express shock and promise to change the laws to stamp out this tax evasion. Some sacrificial heads will roll, the laws will be tweaked and the lawyers of the rich will immediately find ways to circumvent them, then back to business as usual. It's very similar to the 2008 financial crisis where little has ultimately changed, and it is more than likely another crisis will happen again sometime soon. The irony is that the vast majority of the individuals named in these papers including the deposed Icelandic prime minister, have not actually broken any laws. The whole system of legal loopholes was set up by the super rich, through their puppet politicians in the first place, to avoid paying any taxes. This could of course be fairly simply sorted out by fundamental changes in the law, if the will was there, but the rich 1% would never allow that to happen. In the end it will all fade away as yesterdays news, and we will be back to worrying about obesity and our sugar consumption, it's just the way of the world as I see it.
Indeed, when the story first appeared, we wondered how long it would be before it was all forgotten about. One thing that is good is that it proves the value of responsible investigative journalism. As Thomas Jefferson put it, "were it left to me to decide whether we should have a government without newspapers or newspapers without a government, I should not hesitate a moment to prefer the latter." Of course, we've been down this road before and we still see bankers pocketing millions, we still have dubious surveillance and rendition, and we still have multinational companies laughing in the face of tax authorities all over the world. For my own sins, I spent some years working in (employer) tax compliance and the overall political mood was that our time was better spent chasing plumbers that received cash in hand payments or a few people that were not declaring all their income from selling a couple of Christmas cards on eBay. It has been interesting, though, to see how David Cameron's position has been changing day by day. On Monday, his father's tax affairs were "a purely private matter" and now that we have reached Friday, he is grudgingly admitting that he profited directly from the sale of shares rather than purely the indirect benefit he received of being bankrolled through a public school and a university that still remains largely the preserve of the privileged few.
Here is the next one under pressure Thousands march on No10 calling for Cameron to quit over tax revelations as Lily Allen brands him 'dishonest' - and under-fire PM admits 'I could have handled it better' The embattled Prime Minister was accused of 'hypocrisy' after he finally admitted profiting from more than £30,000 in an offshore tax haven. After days of pressure, Mr Cameron acknowledged he had benefited from a controversial fund set up by his late father Ian. In the wake of that extraordinary interview, thousands lined Whitehall today urging Mr Cameron to 'go now'. Protesters drew inspiration from events in Iceland when huge pressure from furious protesters forced Sigmundur Davíð Gunnlaugsson to resign after it was revealed his family had sheltered money offshore as the country was almost brought to its knees during the 2008 financial crash. Article
They need to charge him with stupidity in did not use an American tax haven where he would have been protected. Funny no American gangster /elite was in those papers.