Pandora Papers leak: Biggest financial leak in history
After the Panama paper in 2016 and Paradise papers, the Pandora papers leak is the biggest financial leak in history. Total 11.9 million files with 2.9 terabyte size leak contain Documents, Spreadsheet, Images, Ppt, Audio, and Video files. This is something huge investigation done so far by the International Consortium of Investigative Journalists. A total of 600 journalists in 117 countries has done this research. The confidential information was leaked from 14 offshore corporate service providers, enterprises that set up and manage shell companies.
The real manipulation of money is done by people around the world. The surprising facts are not only businessmen and artists were there but also the politicians and government officials around the world are there in the list.
Big-name from businessman, artist, sportsman, and politician around the world name was there in the Pandora paper. Now the current and former politicians and government officials name is really shocking. It shows no trust in his/her own countries which makes citizens insecure.
Tax Haven countries
Tax haven countries are those countries that give tax exemption to the foreign citizens that there will be no tax on investing the money in their country.
“Heaven” and “Haven” are two different things- Heaven means a place of angels where someone goes after death. Haven on the other hand is a secure and safe spot where you hide important and precious things.
Some examples of Tax haven countries are:
- Switzerland
- Bermuda
- Bahamas
- Mauritius
- Monaco
- Luxembourg
- Jersey
- Panama
- Cyprus
There are other countries as well that provide tax exemption to foreign citizens. Tax exemption has been given in two ways- very less tax or no tax on income.
FAQ on Pandora paper
What is the amount of money involved in this pandora paper leak?
An estimated 32 trillion USD is hidden from being taxed. This money is excluding non-monetary valuables such as Jewelry, Real estate, and Arts. Pandora Papers leak is the Biggest financial leak in history.
How Tax got saved using Tax Haven Countries?
The whole idea of making an offshore company is to save or avoid tax. Offshore means outside the home country. Now how money gets transferred is another thing in which people use the informal cross-border transaction and receive payments in that country where they make shell companies.
What do you mean by offshore company and shell company?
An offshore company is a company that is opened outside the home country you live in. Shell companies are those companies that were incorporated to achieve specific goals. The shell company does not carry any operation but achieves specific goals like avoid tax and convert black money to white.
Will this Pandora paper leak lead to anything serious?
These are big hints for wrong financial transactions and implications on the country’s economies, it is hard to say we see any serious action on this. This is not considered a big crime and is mostly neglected by the country. Sadly, there is a list of politicians and government officials which lead no serious action to the evaders.
If you want to read more about the leak you can check the official website of ICIJ.
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