I bet readers have heard of the Pandora Papers that were leaked a few months back. It’s the latest amongst the “P Papers” (ie. Panama Papers 2016, Paradise Papers 2017) to unmask the shady dealings of the global elite’s network of money laundering, tax evasion and corruption. Here’s the rundown:
Organisations and public figures should pay taxes to their native countries.
However, by setting up shell companies, trusts or licensing at tax havens, they can pay significantly less taxes from their earnings. (ie. tax offshoring)
A web of companies, beneficiaries and trustees are usually set up to reap the benefits of these tax loopholes.
For a more in-depth overview on the structures, this video is a good explainer.
Basically, it’s corporate structuring taken to the extreme to minimise taxes and in some cases, muddle the paper trail (gains from corruption).
It’s estimated that a hefty $7 trillion are tied up in these offshore financial centres.