Dozens of prominent politicians and businessmen from various countries hide their wealth in tax havens to avoid being taxed by their own country’s authorities. It follows leaked documents from law firm Mossack Fonseca, some of which were published today by some of the world’s leading media outlets. According to the Czech Center for Investigative Journalism, there are 283 Czechs among them.
IN document there are also allegations of about a dozen national leaders, including Ukrainian President Petro Poroshenko, or members of China’s Politburo. The material also talks about a massive two billion dollar (47 billion crown) transfer by people close to Russian President Vladimir Putin and offshore companies with ties to Chinese President Xi Jinping’s family.
The documents were obtained anonymously by the German newspaper Süddeutsche Zeitung, which shared them with the International Association of Investigative Journalists (ICIJ) and with more than one hundred media outlets in 78 countries. According to the British newspaper The Guardian, this is a leak of documents on a larger scale than those published by the Wikileaks portal in 2010 or by Edward Snowden, an associate of the American secret service, three years ago. Journalists analyzed and verified it for more than a year.
The Czech Center for Investigative Journalism participates in a project in the Czech Republic. According to today communication center, there are more than 250,000 documents related to Czech corporate clients. This includes legal documents such as articles of incorporation, stock and certificates, as well as email communications or comments on contracts. There are reportedly 283 Czech people who hold shares in one or more offshore companies founded by Mossack Fonseca.
Guardian video of Putin’s relationship with Mossack Fonseca
Most often, these companies are established for the Czech Republic in the Seychelles, of which there are said to be more than 800. Followed by the British Virgin Islands, Bahamas, Panama or the island of Samoa, the center reports. “The Panama Papers exposed a group of very wealthy Czech businessmen whose fortunes and business empire were largely based on the privatization of coupons,” reports the Czech Center for Investigative Journalism.
This is, for example, the richest Czech Petr Kellner or businessman and billionaire Daniel Křetínský. According to the center, in the database of documents, several persons related to the solar business or the name of fugitive entrepreneur Radovan Krejčíř, who was sentenced to 10.5 years in the Czech Republic for tax evasion, fraud and other crimes, can also be found. .
According to the BBC, the documents show how Panama-based consulting firm Mossack Fonseca helps its clients avoid paying taxes or legalize profits from illegal activity as efficiently as possible. In addition to dictators or authoritarian rulers, corporate clients hiding their assets in tax havens include, for example, Poroshenko, Pakistani Prime Minister Nawaz Sharif, and Icelandic Prime Minister Sigmundur Davíd Gunnlaugsson, BBC reported.
Putin doll figure
The documents also shed light on a massive money laundering scheme allegedly involving Russia’s Rossiya Bank and allegedly contacting Putin. Money from banks, which are targeted by EU and US sanctions, is funneled to offshore companies, some of which are owned by Putin’s close friend, cellist Seygey Roldugin, according to leaked records.
He officially made hundreds of millions of dollars, but according to Panamanian company documents, he was simply a figurehead who “protected the identities and privacy of the real owners who profited from the company.” Several million leaked documents known as the “Panama Papers” originate from internal corporate records and cover the period from 1977 to 2015. They include the names of 12 current and former world leaders and 128 other world politicians, according to the ICIJ.
ICIJ’s video explains the consequences of tax evasion
According to the Chairman of the ICIJ, this is an overview of Mossack Fonseca’s daily activities for nearly forty years of operation of this company. “I think this leak will be the biggest hit the offshore world has ever received because of the scale of the document,” said Gerald Ryre, according to the BBC.
The company does not deny the establishment of offshore companies, but according to its shareholders, they are not used for illegal activities such as tax evasion, money laundering or arms trading. “Ninety-five per cent of our work happens to be selling tools that make it possible to avoid paying taxes,” said an unnamed company shareholder, according to one of the notes published by a British newspaper.
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