Panama Papers

[Martinus]

So, does anyone have cliffnotes of what this scandal is actually about? Just people putting money in foreign accounts and buying shelf companies or is there more to that?

[Martinus]

For example reading this part:

Generally speaking, owning an offshore company is not illegal in itself. In fact, establishing an offshore company can be seen as a logical step for a broad range of business transactions. However, a look through the Panama Papers very quickly reveals that concealing the identities of the true company owners was the primary aim in the vast majority of cases. From the outset, the journalists had their work cut out for them. The providers of offshore companies – among them banks, lawyers, and investment advisors – often keep their clients' names secret and use proxies. In turn, the proxies' tracks then lead to heads of state, important officials, and millionaires. Over the course of the international project, journalists cooperated with one another to investigate thousands of leads: they examined evidence, studied contracts, and spoke with experts.

That's a pretty normal and legitimate business practice. So is tax planning/optimisation. I know from experience that journalists often misunderstand (or deliberately misinterpret - being bitter bitches they are, since they are usually paid shit but wield considerable power to destroy, so they are often on some sort of a crusade against people who actually work hard and do stuff) such arrangements and present them in a sensationalist way.

Or this:

For an extra fee, Mossack Fonseca provides a sham director and, if desired, conceals the company's true shareholder.

Again, a standard practice of shelf company providers is to provide an administrative director who does stuff like tax and court filings, collects mail etc. Using a word "sham" to describe someone like this is pretty defamatory.

And yes, many countries do not require company register to disclose the shareholder's identity. That is not "concealing", that is acting in accordance with law. If you have a problem with that, petition the legislators to change the law.

[Tamas]

In case of Hungary, offshore companies with invisible ownerships appear as part owners of companies receiving huge amounts of either tax money, or from doing some lucrative business created/monopolised by the state. For example gas transit to Hungary, and the selling of "citizenship bonds".

So I am pretty sure the aim with these is to hide the true interests behind those companies, as they would be politically, even criminally, uncomofortable for politicians.

[Martinus]

So yeah, having read the article, it seems the biggest scandal is that Sueddeutsche Zeitung journalists bought or otherwise acquired stolen data in violation of law and they are now trying to present themselves as heroes rather than thieves.

[Martinus]

In case of Hungary, offshore companies with invisible ownerships appear as part owners of companies receiving huge amounts of either tax money, or from doing some lucrative business created/monopolised by the state. For example gas transit to Hungary, and the selling of "citizenship bonds".

So I am pretty sure the aim with these is to hide the true interests behind those companies, as they would be politically, even criminally, uncomofortable for politicians.

Yeah but it is legal. So change the law if you don't like it. Complaining that businesses make use of legally available ways to optimise their operations is idiotic.

[celedhring]

It's illegal in Spain, too, to not disclose holdings abroad past a certain threshold (which is rather low). Several of the Spanish names presented in the list would have fallen foul of that. And once you start with that felony, then comes the reason why they did that.

[celedhring]

Lol, it looks like the company was created the same month Juan Carlos became king of Spain in 1974, so the infanta might have been a figurehead for the king himself. 

(the king's finances are tightly controlled and he's not allowed to acquire property or earn money outside of his stipend).

[Norgy]

Not reporting your taxable income is a crime here. DNB helped thousands to stash away lots of money in the Seychelles.

And despite your trolling, Marti, these journalists work under the risk of death exposing this. Which most tax lawyers don't.

[Malicious Intent]

Marti, this is about money laundering, tax evasion and breach of UN sanctions on a massive scale. And the SZ did not buy the information, they were given it freely under guarantee of anonymity for the source (who understandadly fears for his life).

[Solmyr]

Marti is going full Trump on us.

[Tamas]

Marti is going full Trump on us.

Someone should check if his name is on the list.

[Norgy]

Marti, this is about money laundering, tax evasion and breach of UN sanctions on a massive scale. And the SZ did not buy the information, they were given it freely under guarantee of anonymity for the source (who understandadly fears for his life).

Well, you said it better.

[Martinus]

Marti is going full Trump on us.

Someone should check if his name is on the list.

I am not rich enough.

[Norgy]

Should've used that firm, Marti. 

[Martinus]

I actually did consider moving my savings abroad but mainly to protect them against PiS and/or Putin.