OTTAWA -- In light of a bombshell report that exposed the tax havens used by the world鈥檚 elite, new focus has emerged on how easy it is to create a trust or shell company that can shield the owner from taxes.
The 鈥淧andora papers,鈥� (ICIJ), analyzed leaked data from 14 firms and found that billionaires, politicians, celebrities and criminals are hiding their wealth in shell companies and trusts, which can hide the purchase of mansions, yachts, beachfront homes and other expensive assets. Many of these tax dodges are legal.
鈥淭his is the biggest offshore leak in history,鈥� Ben Hallman, ICIJ senior editor, told 麻豆影视 Channel on Monday. 鈥淚t really lays bare the financial secrets of some of the people who are in the position to actually change the offshore system and potentially actually crack down on tax shelters.鈥�
a British consortium of charities known as Oxfam International applauded the report and shined a light on how hurtful these tax havens can be for the rest of the population.
鈥淭his is where our missing hospitals are,鈥� Susana Ruiz, Oxfam International鈥檚 tax policy lead, said in the statement.
鈥淭his is where the pay-packets sit of all the extra teachers and firefighters and public servants we need. Whenever a politician or business leader claims there is 鈥榥o money鈥� to pay for climate damage and innovation, for more and better jobs, for a fair post-COVID recovery, for more overseas aid, they know where to look.鈥�
Among the people named in the report include the singer Shakira, former U.K. Prime Minister Tony Blair, Jordan's King Abdullah II, Czech Republic Prime Minister Andrej Babis and Russian President Vladimir Putin.
鈥淥ne of the implications really that we expect is that there will heightened focus not just on these people, not just on these individuals, on the enablers, the professional firms and other companies that really help direct this offshore economy,鈥� Hallman said.
Hallman said anyone with even as little as a few hundred dollars can find a lawyer or accountant who can set up such a trust or shell company, which are then used to protect the client from paying taxes on their wealth and assets.
鈥淚t鈥檚 incredibly easy and because this all happens in the shadows, there鈥檚 no transparency, so people can do it without much fear that there will be blow back,鈥� he said. 鈥淥f course, the revelations in these documents might challenge some of those assumptions.鈥�
While tax haven countries have typically been associated with tropical destinations -- such as Panama or the British Virgin Islands -- Hong Kong, Belize and the United States are also among the popular locales for the world鈥檚 rich and famous to hide their wealth.
鈥淲hat we鈥檙e seeing are people just taking advantage of countries that intentionally have weak laws and allow people to set up companies with reporting who really owns the company,鈥� Hallman said.
In particular, the states of Nevada, Delaware and South Dakota have become popular spots to establish these trusts, due to the weak financial transparency laws in those states.
鈥淭he United States, our reporting shows, is really one of the biggest tax havens in the world, and a growing one at that,鈥� Hallman said. 鈥淲e have a story that spotlights South Dakota, which has become a hub in the international trust industry.鈥�
With files from The Associated Press
