The Panama papers are a massive leak of legal documents from a law firm in Panama, Central America.
A whistle-blower passed 11 million documents to German newspaper Sueddeutsche Zeitung.
Because of the sheer number of documents and the huge amounts of financial and corporate data they contained, the Germans called on the International Consortium of Investigative Journalists to help wade through the paperwork.
Nearly 200 news organisations worldwide belong to the ICIJ and have offered resources to analyse and publish the information hidden in the Panama Papers.
Where did the Panama Papers come from?
The documents all originated from Panama law firm Mossack Fontera, which has acknowledged a security breach.
The lawyers say they are beyond reproach and have formed companies, trusts and helped with tax advice for more than 40 years.
“These companies were formed by us for other intermediaries and individuals,” said a spokesman. “Although we may have incorporated them, what happened to them afterwards is nothing to do with our firm.”
What do the Panama Papers reveal?
The Panama Papers are both a how to guide in tax avoidance and a list of world leaders, public figures, sports stars, companies and celebrities who have manipulated international tax laws to hide the true ownership of assets.
Are these tax avoidance acts illegal?
Tax avoidance is not illegal, providing any income or gains arising from assets are declared to the appropriate tax authority.
Who are the public figures mentioned in the papers?
The Panama Papers has a huge list of names and no doubt the revelations will continue for some time.
Names mentioned so far include associates of Russian President Vladimir Putin, the father of British Prime Minister David Cameron, Nawaz Sharif, Pakistan’s prime minister; Ayad Allawi, ex-interim prime minister and former vice-president of Iraq; Petro Poroshenko, president of Ukraine; Alaa Mubarak, son of Egypt’s former president; and the prime minister of Iceland, Sigmundur David Gunnlaugsson.
What’s the fuss about the Panama Papers?
For the first time, documentary evidence lays bare the extent of tax avoidance worldwide.
The countries with the most intermediaries assisting in tax avoidance are Hong Kong, Switzerland, Jersey, Britain, Panama and Luxembourg. The US, United Arab Emirates, Uruguay and China also figure highly.
