Still no crackdown despite Panama Papers

ONE YEAR after millions of documents were leaked from a Panama-based law firm exposing the use of tax havens by wealthy businessmen, politicians, and heads of states, many countries have done little to crack down on the tax evading practice, activists said on Monday marking the anniversary of the release of the Panama Papers.

“One year on from the Panama Papers scandal our political leaders are still not standing up to tax havens,” said Esmé Berkhout, Tax Justice Policy Adviser for Oxfam.

“Tax dodgers, and the tax havens supporting them, continue to cheat poor countries out of $170 billion in taxes every year.

“This money could fund health services that could save the lives of almost 150 million children.”

The set of over 11.5 million secret files from the Panamanian law firm Mossack Fonseca exposed high-level politicians in Latin America and the Middle East for hiding millions of dollars in tax havens.

Berkhout said some governments have started to act against those keeping their money in tax havens to avoid taxes. Ecuador was quick to begin cracking down on the practice against public officials.

As a response to the Panama Papers, Ecuador’s government proposed a referendum this year. It asked voters: “Do you agree that, for those holding a popularly elected office or for public servants, there should be a prohibition on holding assets or capital, of any nature, in tax havens?”

The vote took place with the first round of the presidential elections in late February and people voted to bar people hiding money abroad from being in public office.

With the presidential victory on Sunday of left-wing candidate Lenin Moreno against right-wing opponent Guillermo Lasso, a former banker who was actually exposed in the Panama Papers as having millions of dollars abroad, the fight against tax havens is set to continue in Ecuador.

Berkhout said governments ought to set up “objective blacklists of tax havens”.

“It should also take further action to prevent their use for tax avoidance and evasion”. teleSUR