What Is Pandora Paper Leak?

Hidden Wealth, Tax Avoidance and Money-Laundering

The leak of almost 12 million documents, known as the "pandora papers," reveals hidden wealth, tax avoidance and money-laundering by some of the world's rich and powerful. People can legally avoid paying taxes by moving their money or setting up companies in tax havens, but it is often seen as unethical. The UK government says tax avoidance is not in line with the spirit of the law.

It is not illegal to have offshore assets, but using a network of secret companies to move money and assets is a great way to hide the proceeds of crime. It is not certain, but estimates ranged from $5.6 trillion to $32 trillion. The International Monetary Fund says that the use of tax havens costs governments $600 billion in lost taxes each year.

Investigating the Use of Trusts in Business

The investigation involves around 600 journalists from 150 media outlets around the world. The journalists cross-referenced the information from the haul to public records across the world. If trusts are used to evade taxes, protect wealth from law enforcers, and sometimes to use it for criminal activities, they are definitely illegal.

Businesspersons are given enhanced secrecy by offshore trusts. The Indian Income Tax Department can only request financial investigation agencies or international tax authorities in offshore countries to get to the ultimate beneficial owners, a process that takes months. India, people are allowed to invest $250,000 a year.

Secrets of offshore companies: a new look at tax haven and human rights abuse

The documents were created between 1996 and 2020. They have information more than 29,000 beneficial owners. Five years ago, there were only a few owners found in the Panama Papers investigation, which was based on a leak from a single law firm.

The offshore company's secrecy can give cover to money flows, enabling bribe-taking, tax evasion, terrorism financing, and human rights abuses, experts say. The international soccer scandal known as "FIFAGate" and the alleged looting of Venezuela's public assets are just some of the revelations contained in the Pandora Papers. Poor nations are disproportionately harmed by the tax havens that hold wealth, which starves them of funds to pay for roads, schools and hospitals.

The investigation shows that international leaders have moved money and assets beyond the reach of tax and law enforcement authorities as their citizens struggle. It shows how offshore firms are used to hide art and antiquities. The team found that many ancient relics are still on display in museums despite being linked to a collector who is suspected of being involved in a large scale antiquities scam.