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Title: Panama Papers probes opened, China limits access to news on leaks
Source:
Reuters
URL Source: http://www.reuters.com/article/us-panama-tax-idUSKCN0X10C2
Published: Apr 5, 2016
Author: Ben Blanchard and Lisa Jucca
Post Date: 2016-04-05 08:23:47 by Stoner
Keywords: None
Views: 461
Comments: 10
Authorities across the globe have opened investigations into the activities of the world's rich and powerful after a cache of leaked documents from a Panamanian law firm showed possible wrongdoing using offshore company structures. The "Panama Papers" have cast light on the financial arrangements of high profile politicians and public figures and the companies and financial institutions they use for such activities. Among those named in the documents are friends of Russian President Vladimir Putin and relatives of the leaders of China, Britain, Iceland and Pakistan, and the president of Ukraine. Leading figures and financial institutions responded to the massive leak of more than 11.5 million documents with denials of any wrongdoing as prosecutors and regulators began a review of the reports from the investigation by the U.S.-based International Consortium of Investigative Journalists (ICIJ) and other media organizations. Following the reports, China has moved to limit local access to coverage of the matter with state media denouncing Western reporting on the leak as biased against non-Western leaders. France, Australia, New Zealand, Austria, Sweden and the Netherlands are among nations that have commenced investigations, and some other countries, including the United States, said they were looking into the matter. Mossack Fonseca, the Panamanian law firm at the center of the leaks, has set up more than 240,000 offshore companies for clients around the globe and denies any wrongdoing. It calls itself the victim of a campaign against privacy and claims media reports misrepresent the nature of its business. In a printed statement given to Reuters by a staff member at Mossack Fonseca's Hong Kong office on Tuesday, the firm said it has never been charged with or formally investigated for criminal wrongdoing in its nearly 40 years of operation. "We do not advise clients on how to operate their businesses. We don't link ourselves in any way to companies we help incorporate," the firm said in the statement. "Excluding the professional fees we earn, we don't take possession of clients' money, or otherwise have anything to do with any of the direct financial aspects related to operating these businesses." Mossack Fonseca also said it supports international initiatives requiring greater transparency of newly incorporated companies and trusts and has implemented such measures as part of its own due diligence. Related Coverage › German minister announces new rules against offshore companies › Small Australian software firm helps join the dots on Panama Papers › Nordea says to end association with law firm Mossack Fonseca The staff at the office declined to answer questions. The Hong Kong government said in a statement that its Inland Revenue Department has taken note of the recent release of the documents and will take "necessary actions" based on any information it gets. It will not comment on individual cases or disclose the course of action because of secrecy provisions in Hong Kong tax law, the government said. DENIALS AND BACKLASH Credit Suisse and HSBC, two of the world's largest wealth managers, on Tuesday dismissed suggestions they were actively using offshore structures to help clients cheat on their taxes. Related Video Video World’s wealthy deny links in 'Panama Papers' leak Video Thousands of Icelanders call on PM to resign Video Not responsible for "illegitimate activities": Mossack Fonseca boss Both were named among the banks that helped set up complex structures that make it hard for tax collectors and investigators to track the flow of money from one place to another, according to ICIJ. Credit Suisse CEO Tidjane Thiam, who is aggressively targeting Asia's wealthiest for growth, said his bank was only after lawful assets. Speaking at a media briefing in Hong Kong, he acknowledged the bank uses offshore financial structures, but only for very wealthy customers with assets in multiple jurisdictions and did not support their use for tax avoidance or allow them without knowing the identities of all those concerned. "We do not condone structures for tax avoidance," he said. "Whenever there is a structure with a third party beneficiary we insist to know the identity of that beneficiary." Separately, HSBC said the documents pre-dated a thorough reform of its business model. Related Coverage › China limits coverage and denounces Panama Papers' tax haven revelations › Opposition calls on Cameron to tackle British tax havens › Ukraine's fiscal service will look into President's offshore assets › Austria urges EU action on money laundering after 'Panama Papers' Both banks have in recent years paid large fines to U.S. authorities over their wealth management or banking operations. Credit Suisse agreed in 2014 to pay a $2.5 billion fine for helping rich Americans evade taxes. HSBC agreed in 2012 to pay $1.92 billion in fines, mainly for allowing itself to be used to launder Mexican drug money. The reports on leaks also pointed to the offshore companies linked to the families of Chinese President Xi Jinping and other powerful current and former Chinese leaders. Chinese Foreign Ministry spokesman Hong Lei, when asked if the government would investigate tax affairs of those mentioned in the Panama Papers, told reporters at a daily news briefing the ministry would not comment on "these groundless accusations". Searches for the word "Panama" on Chinese search engines bring up stories in Chinese media on the topic, but many of the links have been disabled or only open onto stories about allegations directed at sports stars. China's Internet regulator did not immediately respond to a request for comment. The Global Times, an influential tabloid published by the ruling Communist Party's official People's Daily, suggested in an editorial on Tuesday that Western media backed by Washington used such leaks to attack political targets in non-Western countries while minimizing coverage of Western leaders. (Additional reporting by Denny Thomas, Saeed Azhar and Clare Baldwin; Writing by Sam Holmes; Editing by Martin Howell) The company logo of Mossack Fonseca is seen inside the office of Mossack Fonseca & Co. (Asia) Limited in Hong Kong, China April 5, 2016. Reuters/Bobby Yip More From Reuters Usually calm, Clinton loses cool over Greenpeace question |1 Apr Islamic State executes 15 of its own near Raqqa, Syria: monitor |3 Apr Poorly educated? Unsuccessful? Trump is your man |30 Mar Giant arch to block Chernobyl radiation for next 100 years |23 Mar Amazon sues former employee over new job at Target |22 Mar Trump's prediction of 'massive recession' puzzles economists |3 Apr Panama lawyer at center of data leak denounces attack on privacy |4 Apr Empty American promises and the lives they can cost |25 Mar U.S. says it killed ISIS militant who killed Marine in Iraq |3 Apr The three powerful scholars fueling Islamic State’s hate |29 Mar Trending On Reuters Panama Papers probes opened, China limits access to news on leaks | Video 1 New U.S. inversion rules threaten Pfizer-Allergan deal 2 Dollar slides to 17-month low vs yen as stocks, oil fall 3 Oil glut up close: How Cushing copes with full crude tanks 4 Saudi Arabia's bitter Lebanese divorce 5
Will be interesting to see what American names come out of this, and details of what their involvement is.
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#1. To: Deckard (#0)
Ping. You might find this interesting.
Si vis pacem, para bellum Those who beat their swords into plowshares will plow for those who don't Rebellion to tyrants is obedience to God. There are no Carthaginian terrorists. President Obama is the greatest hoax ever perpetrated on the American people. --Clint Eastwood "I am concerned for the security of our great nation; not so much because of any threat from without, but because of the insidious forces working from within." -- General Douglas MacArthur
Money laundering thieves, swindlers & conartists.
Ya think? Surely you jest, LOL ! Si vis pacem, para bellum Those who beat their swords into plowshares will plow for those who don't Rebellion to tyrants is obedience to God. There are no Carthaginian terrorists. President Obama is the greatest hoax ever perpetrated on the American people. --Clint Eastwood "I am concerned for the security of our great nation; not so much because of any threat from without, but because of the insidious forces working from within." -- General Douglas MacArthur
No Clintons or Bushes on the list? In a Cop Culture, the Bill of Rights Doesn’t Amount to Much I don't think the names of Americans has been released. Once it is, I would bet dollars to doughnuts they will be at the top. Si vis pacem, para bellum Those who beat their swords into plowshares will plow for those who don't Rebellion to tyrants is obedience to God. There are no Carthaginian terrorists. President Obama is the greatest hoax ever perpetrated on the American people. --Clint Eastwood "I am concerned for the security of our great nation; not so much because of any threat from without, but because of the insidious forces working from within." -- General Douglas MacArthur
Rush today mentioned that this story is the reason why 0 came out with a shot against corporate and the rich using loopholes to hide money, to get out in front of this story. The Panama paper trail deserves further study.
Yes, it certainly does. I did not get to hear Rush today, busy plowing my garden, etc. I would sure like to have heard him on this topic. Si vis pacem, para bellum Those who beat their swords into plowshares will plow for those who don't Rebellion to tyrants is obedience to God. There are no Carthaginian terrorists. President Obama is the greatest hoax ever perpetrated on the American people. --Clint Eastwood "I am concerned for the security of our great nation; not so much because of any threat from without, but because of the insidious forces working from within." -- General Douglas MacArthur
while interesting none of this is surprising. Who, among us, doesn't think that we are been led by liars, thieves and conartists? You have one of the greatest conartists of all time running for nomination for President of the United States. I wonder if his name is on the list along with other candidates and present and former presidents and their associates. Tax minimisation is an industry that has needed an overhaul for a long time. the reason action hasn't been taken is that it doesn't suit the rich and as they are political donors it doesn't suit the politicians. the idea that the rich are pillars of the economy, job creators rather than wealth horders is being shown to be absolute bunk. All over the world schemes are marketted, obscure actors even get involved and the sums involved are staggering
The taxation on citizens could be done away with, as would the tax on the rich by one simple method. Taxing at a very low rate, trades on the stock exchange and the financial market. Traders are making billions per year trading derivatives, which are most similar to casino's with the US government covering losses if any. Why not hit them, and quit taxing producers, and workers?
I agree a rethink is needed, we have a different economy today and shifting the collection method to financial transactions makes a lot of sense, however not everyone deals in securities so a bank debits tax attaching to all transactions would spread the load and ensure everyone paid something. i know this was tried with sales tax but there are ways out, whereas taxing every transaction at a low rate simplifies the process and does away with loads of compliance cost
#2. To: Stoner (#0)
#3. To: Willie Green (#2)
" Money laundering thieves, swindlers & conartists. "
#4. To: Stoner (#1)
Authorities across the globe have opened investigations into the activities of the world's rich and powerful after a cache of leaked documents from a Panamanian law firm showed possible wrongdoing using offshore company structures.
“Truth is treason in the empire of lies.” - Ron Paul
Americans who have no experience with, or knowledge of, tyranny believe that only terrorists will experience the unchecked power of the state. They will believe this until it happens to them, or their children, or their friends.
Paul Craig Roberts
#5. To: Deckard (#4)
" No Clintons or Bushes on the list? "
#6. To: Stoner (#5)
#7. To: jeremiad (#6)
" The Panama paper trail deserves further study. "
#8. To: Stoner (#0)
(Edited)
#9. To: paraclete (#8)
#10. To: jeremiad (#9)
The taxation on citizens could be done away with,
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