Panama Papers - Huge tax leak exposes Putin aides, world leaders, stars

[Astronuc]

Panama Papers

PARIS (AFP) - A massive leak of 11.5 million tax documents on Sunday exposed the secret offshore dealings of aides to Russian president Vladimir Putin, world leaders and celebrities including Barcelona forward Lionel Messi.

An investigation into the documents by more than 100 media groups, described as one of the largest such probes in history, revealed the hidden offshore dealings in the assets of around 140 political figures -- including 12 current or former heads of state.

The documents [over 40 years], from around 214,000 offshore entities, came from Mossack Fonseca, a Panama-based law firm with offices in more than 35 countries.

Some highlights so far,

-- Close associates of Putin, who is not himself named in the documents, "secretly shuffled as much as $2 billion through banks and shadow companies," the ICIJ said.

-- The files identified offshore companies linked to the family of Chinese President Xi Jinping, who has led a tough anti-corruption campaign in his country, the ICIJ said.

-- In Iceland, the files show Prime Minister Sigmundur David Gunnlaugsson and his wife secretly owned millions of dollars of investment in his country's banks during the financial crisis through an offshore company.

-- The law firm of a member of FIFA's ethics committee, Juan Pedro Damiani, had business ties with three men indicted in corruption scandal: . . . .

-- Argentine football great Messi and his father owned a Panama company, Mega Star Enterprises Inc., a shell company that had previously not come up in Spanish investigations into the father and son's tax affairs.

I wonder if any US politicians or businessmen are in the records.http://www.usatoday.com/story/money...cial-leak-reveals-offshort-accounts/82586798/

The Panama Papers (11.5 million documents, 2.6 terabytes)
http://panamapapers.sueddeutsche.de/en/

Tax evasion and money laundering.

From ICIJ

Based on a trove of more than 11 million leaked files, the investigation exposes a cast of characters who use offshore companies to facilitate bribery, arms deals, tax evasion, financial fraud and drug trafficking.

 

[ecoo]

Interestingly, major U.S. news stations like CNN and Fox News have no stories about this leak.

 

[Astronuc]

Interestingly, major U.S. news stations like CNN and Fox News have no stories about this leak.

Maybe by tomorrow they will.

From Fortune - http://fortune.com/2016/04/03/document-leak-panama/

The millions of leaked documents were obtained by reporters at the German newspaper Süddeutsche Zeitung, which shared them with the ICIJ and other media partners. In the U.S., those partners included Univision, the Miami Herald and The McClatchy Co. Univision-owned Fusion has published a look at the documents and their impact.

While not all of the accounts are illegal or engaged in shady activities, the ICIJ investigation showed that plenty are: The organization said the documents include “at least 33 people and companies blacklisted by the U.S. government because of evidence that they’d been involved in wrongdoing, such as doing business with Mexican drug lords, terrorist organizations like Hezbollah or rogue nations.”

Apparently, the Asad regime in Syria was able to by-pass US and EU restrictions with support from off-shore entities.

Giant Leak of Offshore Financial Records Exposes Global Array of Crime and Corruption
https://panamapapers.icij.org/20160403-panama-papers-global-overview.html

 

[zoobyshoe]

What does this really mean for Putin, though? Isn't he pretty much bullet-proof? Is there anyone in Russia who would call him to task for this?

 

[OmCheeto]

[machine translation(Google) from German to English]
April 3, 2016, 19:55 Panama Papers
revealed secret transactions of hundreds politicians and celebrities in tax havens [Süddeutsche Zeitung]
...
In the coming days about are 100 media publish their results
A data leak of this size, from the journalist material was leaked, it is not known to date not given has. Because the amount of documentation is so huge and the fact the individuals are distributed to so many countries around the world that has Süddeutsche Zeitung research jointly with the International Consortium for Investigative Journalists (ICIJ) organized in Washington. At her appeared about 400 journalists from nearly 80 with countries. In the coming days about are 100 media entitled " Panama Papers" publish their results, including the Guardian , the BBC and Le Monde . In Germany, the NDR and WDR were involved.
...

Twitter is being flooded at the moment.

With so much data, I can understand why they wanted to distribute it to 80 different countries.
That way, everyone can point out their own crooks, liars, and thieves.

Oneindia Hindi ‏@oneindiaHindi 1 minute ago
टैक्स चुराने वालों में अमिताभ, ऐश, नवाज़ सहित कई नामचीन https://www.youtube.com/watch?v=61RHyk07S3o… #taxevasion #panamapapers #PanamaLeaks
Translated from Hindi by Google
Tax thieves Amitabh , Ash , including prominent NawazMohamed Ahmed ‏@mohamed57403545 8 minutes ago
" #وثائق_بنما": أمير #قطر السابق ضمن قائمة تسريبات "إخفاء الثروات" #panamapapers
Translated from Arabic by Bing
" #وثائق_بنما": Prince #قطر previously leaked list "hide wealth" #panamapapersΣτο Κόκκινο 105,5 ‏@stokokkino1055 41 seconds ago
Συνεργάτης του Σαμαρά εμπλέκεται στο διεθνές δίκτυο ξεπλύματος δισεκατομμυρίων http://bit.ly/1S1eBmd #panamapapers
Translated from Greek by Bing
An affiliate of Samara is involved in the international network of http://bit.ly/1S1eBmd laundering billion #panamapapers​

If you want to practice a foreign language, today is the day to do it. #PANAMAPAPERS

 

[Drakkith]

If you want to practice a foreign language, today is the day to do it. #PANAMAPAPERS

I... I can't stop laughing at this!

 

[mheslep]

What does this really mean for Putin, though? Isn't he pretty much bullet-proof? Is there anyone in Russia who would call him to task for this?

Sure, but those who call out Putin have been shown not to be bullet proof.

 

[Greg Bernhardt]

What does this really mean for Putin, though? Isn't he pretty much bullet-proof? Is there anyone in Russia who would call him to task for this?

He's like Trump, he could murder someone (or thousands of Ukrainians) and still keep his job.

I've been meaning to start reading a new book I got called https://www.amazon.com/dp/0230341721/?tag=pfamazon01-20. Might be a good time now.

 

[Borg]

Maybe not Putin but, I wonder how many leaders will be forced out of office?
Iceland opposition calls for snap election over PM offshore scandal

 

[Astronuc]

Chinese President Xi's family implicated in Panama Papers scandal
https://www.yahoo.com/news/panama-papers-family-chinas-president-xi-implicated-075633225.html

At least eight current or former members of the Politburo Standing Committee, the ruling Communist Party's most powerful body, have been implicated, highlighting the hot-button issue of wealth among China's ruling elite.

One of the people named in the leaks is Xi's brother-in-law Deng Jiagui, who set up two British Virgin Islands companies in 2009 when his famous relation was a member of the Politburo Standing Committee but not yet president.

The daughter of former premier Li Peng -- who was in power from 1987 to 1998 --- was also identified in the documents.

They revealed that Li Xiaolin, the former vice president of state-run power company China Power Investment Corporation, was the beneficiary of a Liechtenstein foundation controlling a firm registered in the British Virgin Islands during the period when her father was in office.

A granddaughter of Jia Qinglin, a former member of the Politburo Standing Committee, Li Xiaolin was also the sole shareholder in several offshore companies, through which she discretely controlled companies within China.

Interesting how this works. And Panama-based law firm Mossack Fonseca is just one of how many companies doing this?

 

[StatGuy2000]

Interestingly, major U.S. news stations like CNN and Fox News have no stories about this leak.

The PBS Newshour has an entire article (and presumably a broadcast) about just this topic:

http://www.pbs.org/newshour/rundown/heres-what-we-know-so-far-about-the-leaked-panama-papers/

 

[Astronuc]

Law firm in Panama Papers leak is secretive, with big clients
https://www.yahoo.com/news/law-firm-panama-papers-leak-secretive-big-clients-015610842.html

Fonseca had a small business until he merged with Mossack and the two went after off-shore business by opening offices in the British Virgin Islands.

But Mossack Fonseca also branched out to the Pacific, to a tiny island nation called Niue.

According to the ICIJ, by 2001 the firm was earning so much from its off-shore registrations on the island it was contributing 80 percent to Niue's annual budget.

When the British Virgin Islands was forced to clamp down on some methods that had previously permitted anonymous ownership of companies, Mossack Fonseca moved business to Panama and to the Caribbean island of Anguilla.

- Online scrubbing -

The law firm spent money to try to remove online references linking it to money laundering and tax evasion.

Sounds like an organized crime syndicate.

The PBS Newshour has an entire article (and presumably a broadcast) about just this topic:

It looks like various journalist organizations have been sitting on this for some time, just waiting to publish.

 

[Astronuc]

ILLICIT USES OF OFFSHORE ACCOUNTS:

Shell companies and other entities can be misused by terrorists and others involved in international and financial crimes to conceal sources of funds and ownership. The ICIJ says the files from Mossack Fonseca include information on 214,488 offshore entities linked to 14,153 clients in 200 countries and territories.

https://finance.yahoo.com/news/look-offshore-accounts-used-hide-wealth-avoid-taxes-062616459.html

 

[zoobyshoe]

He's like Trump, he could murder someone (or thousands of Ukrainians) and still keep his job.

I've been meaning to start reading a new book I got called https://www.amazon.com/dp/0230341721/?tag=pfamazon01-20. Might be a good time now.

Yeah, it looks like just the book for the occasion:

In this hard hitting investigation he uncovers how offshore tax evasion, which has cost the U.S. 100 billion dollars in lost revenue each year, is just one item on a long rap sheet outlining the damage that offshoring wreaks on our societies. In a riveting journey from Moscow to London to Switzerland to Delaware, Shaxson dives deep into a vast and secret playground where bankers and multinational corporations operate side by side with nefarious tax evaders, organized criminals and the world's wealthiest citizens. Tax havens are where all these players get to maximize their own rewards and leave the middle class to pick up the bill.

 

[jtbell]

major U.S. news stations like CNN and Fox News have no stories about this leak.

I don't know about the CNN TV channel because I don't have cable/satellite TV, but it's the lead story on cnn.com right now.

http://www.cnn.com/2016/04/04/world/panama-papers-explainer/

 

[gfd43tg]

He's like Trump, he could murder someone (or thousands of Ukrainians) and still keep his job.

I've been meaning to start reading a new book I got called https://www.amazon.com/dp/0230341721/?tag=pfamazon01-20. Might be a good time now.

Since when did Trump murder anyone? How about comparing Putin to the current administration instead?? Trump can't say a single word without being smeared by the media!

 

[zoobyshoe]

Since when did Trump murder anyone? How about comparing Putin to the current administration instead?? Trump can't say a single word without being smeared by the media!

Trump boasted he could stand on 5th avenue and shoot someone and he wouldn't lose any voters. That's what Greg is referencing.

 

[zoobyshoe]

The Kremlin denounced the disclosures, saying they were mostly aimed at Russian President Vladimir Putin, and claiming former U.S. State Department and Central Intelligence Agency officials helped analyze the 11.5 million documents leaked from Panama's Mossack Fonseca law firm.

Putin allegations

The report said Putin associates have funneled nearly $2 billion through offshore accounts over the years.

"This Putinophobia abroad has reached such a point that it is in fact taboo to say something good about Russia or about any actions by Russia or any Russian achievements," Kremlin spokesman Dmitry Peskov said.

http://www.voanews.com/content/pana...find-tax-evaders-offshore-assets/3268470.html

 

[mheslep]

He's like Trump, he could murder someone (or thousands of Ukrainians) and still keep his job.

I've been meaning to start reading a new book I got called https://www.amazon.com/dp/0230341721/?tag=pfamazon01-20. Might be a good time now.

I'd have gone with, he's like Obama, via the droning of jihadists and still keeping his job, given, y'know, the actual killing versus the hyperbole.

 

[zoobyshoe]

Here's an article by an 'American' journalist in Moskow:

http://www.voanews.com/content/pana...find-tax-evaders-offshore-assets/3268470.html

Robert Bridge is an American writer and journalist based in Moscow, Russia. His articles have been featured in many publications, including Russia in Global Affairs, The Moscow Times, Russia Insider and Rethinking Russia. Bridge is the author of the book on corporate power, “Midnight in the American Empire”, which was released in 2013.

His tone is extremely pro-Putin, and the article is interesting in that it voices the view that this is merely an attempt to discredit Putin by falsely associating him with the activities of acquaintances. This probably represents the standard Kremlin take on this that we'll be hearing repeated.

 

[Rick21383]

Trump boasted he could stand on 5th avenue and shoot someone and he wouldn't lose any voters. That's what Greg is referencing.

It was a dumb statement that makes no sense.

Putin can literally kill people and get away with it. Trump gets crucified by people like Greg for every statement he makes, whether it's controversial or not to a reasonable, critically thinking person.

What do you think would happen if Trump actually murdered someone?

 

[Greg Bernhardt]

It was a dumb statement that makes no sense.

Putin can literally kill people and get away with it. Trump gets crucified by people like Greg for every statement he makes, whether it's controversial or not to a reasonable, critically thinking person.

What do you think would happen if Trump actually murdered someone?

Let's keep on topic. I'll retract my statement. It was just a little joke.

 

[Rick21383]

Let's keep on topic. I'll retract my statement. It was just a little joke.

Fair enough.

I suspect some of the juicier contents haven't even been exposed yet. Time to grab the popcorn.

 

[OmCheeto]

...
It looks like various journalist organizations have been sitting on this for some time, just waiting to publish.

Over a year apparently.
And I wouldn't call it "sitting".
2.4 terabytes divided amongst 400 people is 6 gigabytes of data per person.
Perhaps the plan was, to give everyone a year, to dig up what they could.

https://pbs.twimg.com/profile_images/634656409066565632/MME6EUXH_normal.jpg Bastian Obermayer ‎@b_obermayer
Hello. This is John Doe. Interested in data? I'm happy to share- this is how it started more than a year ago #panamapapers#craziestyearever
1:15 PM - 3 Apr 2016​

I wonder what it was about Obermayer, that caused John Doe to pick him.

And who were these 400 journalists, who could keep a secret that long?

 

[OmCheeto]

Brief interview with Bastian Obermayer, by Sarah Kelly of Deutsche Welle:



-------------------

11,500,000 documents
--------------------------- = 28,750 documents/journalist
400 journalists

 

[StevieTNZ]

NZ is embroiled in this situation the leaked documents show.

The following are the first two questions of Questions for Oral Answers 5th April 2016 in NZ's House of Representatives regarding this issue:
1. http://www.inthehouse.co.nz/video/42452 and
2. http://www.inthehouse.co.nz/video/42453

 

[Astronuc]

And I wouldn't call it "sitting".

By 'sitting' I meant not sharing the fact that they had 11.5 million documents describing illicit activities, e.g., tax evasion, of numerous heads of state and celebrities.

NPR did a news article mentioning that the US DoJ was reviewing the documents.

'The Hidden Wealth Of Nations' Author Explores World Of Offshore Tax Havens
http://www.npr.org/2016/04/04/47300...-author-explores-world-of-offshore-tax-havens

ZUCMAN: Of course. You know, it's just one firm in one tax haven, and there is much more going on. And if you want to have a comprehensive view of the scale of problem, you need to look at macroeconomic statistics. And when you do that, you see that there's about 8 percent of the world's financial wealth that is held in tax havens globally. So that's about $7.6 trillion today, a huge amount of wealth.

SHAPIRO: Can you distinguish between how much of this is illegal behavior as opposed to just unethical behavior?

ZUCMAN: Yes. So the data that we have suggests that out of the $7.6 trillion total, about 20 percent of this wealth is duly reported on tax returns so does not correspond to illegal behavior. But 80 percent is not reported, and that's criminal tax evasion.

Panama Papers Shed Light On Global Business Of Tax Avoidance
http://www.npr.org/2016/04/04/473004957/panama-papers-shed-light-on-global-business-of-tax-avoidance

Panama Papers: Here's What You Need To Know (So Far)
http://www.npr.org/sections/thetwo-...t-you-need-to-know-so-far-about-panama-papers

Shell companies are at the heart of the "Panama Papers," but what are they?
http://www.marketplace.org/2016/04/04/business/shell

Legitimate uses for shell companies: "Firms often set them up when they want to move quietly, such as a real estate company that wants to buy up multiple properties without signaling its intention, or a tech company that wants to camouflage its next move from competitors. Using a shell company can be preferable in certain situations involving raising capital or expanding overseas. And of course, companies use them to reduce tax burdens in ways that are legal, though extremely controversial."

Illegitimate uses for shell companies: ". . . illegally hide income and evade taxes, [or money laundering, or financing illicit activities, e.g., drug or arms trafficking, . . ."

 

[OmCheeto]

By 'sitting' I meant not sharing the fact that they had 11.5 million documents describing illicit activities, e.g., tax evasion, of numerous heads of state and celebrities.

NPR did a news article mentioning that the US DoJ was reviewing the documents.

'The Hidden Wealth Of Nations' Author Explores World Of Offshore Tax Havens
http://www.npr.org/2016/04/04/47300...-author-explores-world-of-offshore-tax-havens

...SHAPIRO: Can you distinguish between how much of this is illegal behavior as opposed to just unethical behavior?

ZUCMAN: Yes. So the data that we have suggests that out of the $7.6 trillion total, about 20 percent of this wealth is duly reported on tax returns so does not correspond to illegal behavior. But 80 percent is not reported, and that's criminal tax evasion.

I think Zucman's comment was one good reason to "sit" on the fact that they had the documents. What if they had discovered that 100% of the wealth had been reported on tax returns? Then there wouldn't have been any criminal activity, and there wouldn't be a story.

Also, if the crooks involved had known about it, they might have dissociated themselves from these activities over the last year. Or thought up excuses; "Well, my accountant takes care of 100% of my finances, so I had no knowledge of this. My accountant is a crook. I am not a crook".

Thirdly, some of these journalists probably live in countries where the governments murder people for such activity.

I think sitting on the story was a brilliant move.

Panama Papers Shed Light On Global Business Of Tax Avoidance
http://www.npr.org/2016/04/04/473004957/panama-papers-shed-light-on-global-business-of-tax-avoidance

Panama Papers: Here's What You Need To Know (So Far)
http://www.npr.org/sections/thetwo-...t-you-need-to-know-so-far-about-panama-papers

Shell companies are at the heart of the "Panama Papers," but what are they?
http://www.marketplace.org/2016/04/04/business/shell

Legitimate uses for shell companies: "Firms often set them up when they want to move quietly, such as a real estate company that wants to buy up multiple properties without signaling its intention, or a tech company that wants to camouflage its next move from competitors. Using a shell company can be preferable in certain situations involving raising capital or expanding overseas. And of course, companies use them to reduce tax burdens in ways that are legal, though extremely controversial."

Illegitimate uses for shell companies: ". . . illegally hide income and evade taxes, [or money laundering, or financing illicit activities, e.g., drug or arms trafficking, . . ."

I'll probably wait until everything is exposed before I start pointing fingers. A few of people on the list may be part of the 20% innocent.

And it's not like this is a new thing. Didn't General Electric basically say that they took all of their profits and put them offshore in their annual report, some years back? Yup.

And didn't Obama once complain about this type of activity being centered in the Cayman Islands way back when? What ever happened to that story?

Obama targets Cayman 'tax scam' [Politifact]
By Alex Leary on Wednesday, January 9th, 2008 at 7:03 p.m.

SUMMARY: A building in the Cayman Islands houses thousands of corporations. Sen. Barack Obama calls it "the biggest tax scam on record." But until legislation currently proposed by Obama and others becomes law, it isn't.
...
[conclusion of article]
Obama is not the first politician to focus on tax havens. In 2004, John Kerry took a similar approach. Hillary Rodham Clinton and John Edwards, Obama's chief rivals for the Democratic nomination, have also invoked the issue in the campaign.

But experts say any attempts at reform, while perhaps worthwhile, will not lead to a honeypot for domestic initiatives.

"There's absolutely no question that there's a lot of international tax avoidance," said Eric Toder, an expert with the nonpartisan Urban Institute in Washington, D.C. "But I would be skeptical of any politician who is promising to get a lot of revenue."

Some people have been questioning why nobody from the USA has been mentioned yet. Maybe it's because here, tax scamming is legal?

 

[Astronuc]

Some people have been questioning why nobody from the USA has been mentioned yet.

Why few Americans turned up in the 'Panama Papers'
http://finance.yahoo.com/news/panama-papers-why-no-americans-193702690.html

Apparently, one person from the US has been discovered in the documents.

Bear in mind that Mossack Fonseca is just one company doing offshore entities.

The US has been going after off shore accounts for a number of years.

 

[OmCheeto]

I... I can't stop laughing at this!

Don't laugh!
I really wish I knew my Spanish better...

Miguel Neves ‏@NevesMiguel 8m8 minutes ago
Los #PanamaPapers en #LosSimpson hace 20 años https://youtu.be/u7vPbhlpSYo
Translated from Spanish by Bing
The #PanamaPapers in #LosSimpson for 20 years ​

No! Not Krusty, too...

hmmmm...
(google google google)

Drats, Drak! I can't find an English version.
But wiki has a writeup on the episode:

Bart the Fink
Aired: February 11, 1996
In this episode, Bart ruins Krusty the Clown's career by accidentally exposing Krusty as one of the biggest tax cheats in American history.
...

Anyone know how to say "Doh!" in Español?

 

[OmCheeto]

Finally! Something I can understand

https://twitter.com/MeteoAOE 46m46 minutes ago
Candidates already knew about Panama. Which knew better?! https://youtu.be/5doSJUBymH4 via @YouTube #FeelTheBern #ImWithHer #PanamaPapers​

I'm now calling this a global conspiracy against Hillary...

 

[OmCheeto]

Iceland PM resigns after 'Panama Papers' leak

hmmm...

This is starting to remind me of that scene from "The Matrix", when everything on the computer screen, collapses...

 

[EU2AA]

Previously did not even know that physical forum so politicized and so trusting to the tabloids and anonymous publications.
Now I know.

 

[OmCheeto]

Previously did not even know that physical forum so politicized and so trusting to the tabloids and anonymous publications.
Now I know.

Не понимаю. хммм... Что газеты в Беларуси говорят? = (I don't understand. hmmm... What do the newspapers in Belarus say?)

 

[OmCheeto]

Ah!

Edward Snowden ‏@Snowden 10m10 minutes ago
Edward Snowden Retweeted Richard Milne
In letter to media, #Iceland's current government attempts to "un-resign" the PM. Seems likely to provoke elections.

Richard Milne‏@rmilneNordic
What a bonkers day in Iceland. PM resigns, only for PR to claim he didn't. PM and president basically accuse each other of lying. And tmw?​

I guess we have to wait a few days after each announcement to find out whether or not the person had his fingers crossed.

ps. Not sure if that act is internationally recognized:
Crossed fingers: Some people, mostly children, also use the gesture to excuse their telling of a white lie. By extension, a similar belief is that crossing one's fingers invalidates a promise being made.