Simple guide to understanding Pandora Papers, one of the biggest leaks in history

The Pandora Papers they are a leak of nearly 12 million documents revealing hidden wealth, tax avoidance and, in some cases, money laundering by some of the world’s rich and powerful people.

More than 600 journalists in 117 countries have been sifting through the archives of 14 sources for months, finding stories to be published this week.

The data were obtained by the International Consortium of Investigative Journalists (ICIJ) in Washington DC, which has been working with more than 140 media organizations on its largest global investigation.

The BBC Panorama research program and The Guardian led the investigation in the UK.

What has been discovered?

The filtration of Pandora Papers It includes 6.4 million documents, almost three million images, more than a million emails, and almost half a million spreadsheets.

The stories revealed so far include:

The archives expose how some of the world’s most powerful people, including more than 330 politicians from 90 countries, use companies offshore secrets to hide your wealth.

Lakshmi Kumar, from the US think tank Global Financial Integrity, explained that these people “can funnel and divert money and hide it”, often through the use of anonymous companies.

What does “offshore” mean?

The Pandora Papers they reveal complex networks of businesses that are established across borders, often resulting in hidden ownership of money and assets.

For example, someone may have a property in the UK, but own it through a chain of companies “offshore”, that is, based in other countries.

These countries or territories offshore are where:

These destinations are often called tax havens or secret jurisdictions.

There is no definitive list of tax havens, but the best known destinations include the British Overseas Territories such as the Cayman Islands and the British Virgin Islands, as well as countries like Switzerland and Singapore.

Is it illegal to use a tax haven?

The loopholes in the laws allow people to legally avoid paying some taxes by moving their money or setting up businesses in tax havens, but this is often viewed as unethical.

The UK government says avoiding taxes “implies operating within the letter, but not the spirit, of the law”.

There are also a number of legitimate reasons why people may want to have money and assets in different countries, such as protection against criminal attacks or protection against unstable governments.

Although having secret assets abroad is not illegal, the use of a complex network of secret companies to move money and assets it’s the perfect way to hide proceeds from crime.

There have been repeated calls on politicians to make it difficult to avoid taxes or hide assets, particularly after previous leaks like the Panama Papers.

But Ryle said that the Pandora Papers show that “lhe people who could end the secrecy abroad … are benefiting from it. So there is no incentive for them to finish it. “

How easy is it to hide money in offshore companies?

All you need to do is establish a shell company in one of the countries or jurisdictions with high levels of secrecy. This is a company that exists in name only, with no staff or office.

However, it costs money. Specialized companies are paid to establish and run shell companies on their behalf. These firms can provide an address and names of paid directors, thus leaving no trace of who is ultimately behind the business.

How much money is hidden offshore?

It’s impossible to say for sure, but estimates have ranged from $ 5.6 trillion to $ 32 trillion, according to the ICIJ.

The International Monetary Fund has said that Using tax havens costs governments around the world up to $ 600 billion in lost taxes each year.

Kumar said it is detrimental to the rest of society: “The ability to hide money has a direct impact on your life … it affects your children’s access to education, access to health, access to a home.” .

What is the UK doing about it?

The UK has been criticized for allowing the ownership of anonymous companies abroad.

The government published a bill in 2018 that would require the declaration of the ultimate owners of UK properties. But it is still waiting to be presented to the deputies.

A 2019 parliamentary report said the UK system attracts people “such as money launderers, who may wish to use the property to conceal illicit funds.”

He said criminal investigations are often seen “Hampered” because the police cannot see who is the ultimate owner of the properties.

The government also recently raised the risk of money laundering through properties from “medium” to “high”.

It says it is cracking down on money laundering with stricter laws and enforcement, and that it will introduce a company registry offshore owning property in the UK when parliamentary time permits.

The Pandora Papers are a leak of nearly 12 million documents and files that expose the wealth and secret deals of world leaders, politicians and billionaires. The data was obtained by the International Consortium of Investigative Journalists (ICIJ) in Washington DC and has led to one of the most important global investigations in history. More than 600 journalists from 117 countries have analyzed the hidden fortunes of some of the most powerful people on the planet. The BBC Panorama research program and The Guardian led the investigation in the UK.

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