Monday, 11 April 2016

My 2 Cents on Panama Papers

Of course, people know about these kind of off-shore tax havens for decades. It's just this is a 1st time we have an exposé of this earth-shattering magnitude.



As big as this exposé is, I think it's of only the tip of the iceberg. For example, if you look at the list of Mossack Fonseca's offices on their website, you will see many familiar names of places that specialise for tax havens like Bahamas, Gibraltar,  Seychelles, Isle of Man, etc. There're also many missing names like the the Cayman Islands, Luxembourg, Switzerland, etc.




I'm just saying as big as Massack Fonseca's operations and client list is being revealed, they only cover only a corner of the market.

What is shown on the list offices is that they have more, heaps more offices in China than any other country: Dalian, Hangzhou, Jinan, Ningbo, Qingdao, Shanghai, and Shenzhen. In fact, China is the only country where the law firm has more than 1 offices.



So far, the rippling effects of the Panama Papers have spread to the shores of China, UK, Russia, Iceland. Ok, with Iceland, it's more than a ripple. It swept the PM off his post.

There seems to be fewer Americans companies and individuals that are connected with the Panama Papers, so far. Here are some of the reasons.

First of all, as I said, Mossack Fonseca is only one such law firm among many.

Secondly, there're thousands more documents to examine, and USA is yet to come.

Thirdly, one of the biggest tax havens in the world is actually USA. Why would American individuals and companies want to go off shore when they can do it in the more familiar and convenient backyards of Delaware, Nevada, Arizona, South Dakota, and Wyoming?

UPDATE (15 April 2016)
Fourthly, Swiss bank whistleblower Bradley Birkenfeld suggested that CIA is behind this because the victims of this leak (or hack) seems to be predominantly enemies of the U.S. When asked about UK PM, he responded, "collateral damage."

That's his claim. Draw your own conclusion.

Following this line of reasoning, one might argue that maybe UK PM is taught a lesson for leading the European countries to join China-led AIIB.



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