The Panama Paper firm, Mossack Fonseca, which is in the center of global investigation is linked to more than 1,000 companies in the United States. Since 2001, Mossack has set up firms that led to the building of contentious international tax haven.
As reported by 12 News, the companies set up by the Panama Paper firm were situated commonly in Wyoming and Nevada that allow permissive corporate secrecy laws. Mossack is now under fire after reports were published by international journalists. According to the investigation, the Panama Paper firm is linked to 1,100 businesses in the U.S. since 2001. Most of the firms were reportedly set up in Nevada by M.F. Corporate Services (Nevada) Limited.
"If your goal is secrecy and not having prying eyes find out even the most basic things about what you're doing and what your company is and who owns it, Wyoming and Nevada are incredibly attractive places from that secrecy perspective," said Matthew Gardner, executive director of the Institute on Taxation and Economic Policy.
Just this week, more than 11,000 records of the Panamian law firm were leaked to a number of media outlets. It triggered an international outcry after the secret offshore tax regime of influential people was exposed. The leakage of the data also pushed the Iceland's prime minister to resign. According to the international consortium of journalists, the Panama Paper firm used to shell companies to hide assets to the rich and famous, including the former heads of states, Russian oligarchs and FIFA, according to USA Today.
KSDK reports that nearly 700 American shell companies formed by the Panama Paper firm have business entities as corporate officers instead of people. The strategy made it appear that no individual is connected to the Neveada firm. "We shouldn't be thinking about this as a Panamanian problem," Gardner added. "We should be thinking about this as a very American problem, and a problem that arguably is worse here in the states than it is in Panama.
The head of the Justice Department's investigation, head of its Criminal Division, Leslie Caldwel hasn't commented on the development of the case involving the Panama Paper firm. The investigation also extends to the Justice department's tax division. Its head, Caroline D. Ciraolo Delivers claimed that they were cracking down domestic and foreign account holders who were assisting U.S. taxpayers in hiding their foreign accounts and avoid tax.
