The Panama Papers were released in April 2016, outing the world’s wealthiest people, including celebrities, politicians and business leaders for hiding their wealth through Panama Law Firm, Mossack Fonseca, setups in world tax havens (currently 90 known world tax havens). The explosive revelations subsequently have included:
1) Up to $34 Trillion in Wealth, owned by the world’s richest people, held offshore in tax havens beyond the reach of tax authorities. As revealed 0.1% of the world’s population use offshore tax havens to skip out on payment of up to $300B per year in taxes worldwide.
2) Developing countries: Russia, China, Africa & So. America are “kleptocracies.” Their leaders embezzle trillions of dollars of their country’s assets, line their pockets (and friends, families and colleagues) and steal up to an estimated $14 Trillion in wealth which they hide offshore behind a maze of companies, trusts, and foundations including “purported charities”.
3) Offshore tax dodging includes up to $200 billion more in annual lost revenue from multi-nationals that “park assets” and “intellectual property” in tax free zones like: Ireland, Bermuda, Luxembourg and the Netherlands not paying any taxes and paying themselves tax-free royalties.
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Our author, Gary S. Wolfe, has more than 34 years of experience, specializing in IRS Tax Audits and International Tax Planning/Tax Compliance, and International Asset Protection.