A Panama-based law firm's 11.5 million tax documents have been exposed by German journalists. They claim that there are offshore dealings including the aides of Russian president Vladimir Putin, relatives of Chinese President Xi Jinping, and prominent celebrities.
According to Business Standard, the documents published as "Panama Papers" have been leaked by more than 100 media groups who investigated the matter. There are around 140 political figures named, 12 of which are current and former heads of different states.
Reports say that the stash of documents were obtained by an anonymous source by the German daily Sueddeutsche Zeitung. It has then been shared to the media worldwide by the International Consortium of Investigative Journalists (ICIJ.). The law firm was identified as Mossack Fonseca that has officers in more than 35 countries worldwide such a Hong Kong, Miami, Zurich and many more, Haaretz reported. ICIJ says that most of the alleged dealings are legal but will most likely have "serious political impact" on the public figures.
Also, the documents claim that the banks, law firms, and other involved in the said tax havens have not been strict regarding legal requirements. These requirements aim to ensure that the clients are not involved in criminal activities and are not evading tax payments.
The papers claim that close associates of Putin secretly "shuffled as much as $2 billion" via banks and shadow companies, Vox reported. The Russian president was not named as one of the people making offshore dealings though.
Some companies linked to the family of Chinese President Xi Jinping have been named as well. Jinping has been leading a tough anti-corruption in their country since 2012. Ukrainian President Petro Poroshenko reportedly pledged to sell his business interests when he was campaigning but the records allegedly showed that they were transferred offshore.
Iceland Prime Minister Sigmundur David Gunnlaugsson and his wife were said to have owned an offshore firm that holds millions of dollars when the country underwent a financial crisis. Also named in the documents is football star Lionel Messi. Messi and his father reportedly owned a Panama company.
Actor Jackie Chan is also said to own six companies managed by the law firm. New information on the FIFS scandal have also surfaced regarding the release of "Panama Papers." It showed that the law firm of FIFA ethics committee member Juan Pedro Damiani had business ties to three men convicted in the FIFA corruption case.
In a recent interview with Ramon Fonseca, the founder of Mossack Fonseca, he claimed they are not responsible for what their clients do in the businesses as they only help them register in tax shelters. The exposed public figures have not commented on the reports yet.
