EDITOR’S NOTE
Today the Toronto Star begins publishing a week of investigative journalism based on what we believe to be the largest ever leak of documents. The stories are Canadian and global in scope. We’re calling the series the Panama Papers. The Star has partnered with more than 100 newspapers and TV news organizations in 76 countries, with 376 journalists working in 25 languages under the directing umbrella of the Washington-based International Consortium of Investigative Journalists.
Why the Panama Papers? Because the leaked documents are the secret internal records of Mossack Fonseca, a Panamanian law firm that specializes in hiding money in tax havens such as Costa Rica, the British Virgin Islands and the Seychelles.
The documents show how rich people divert money from government tax coffers to offshore tax havens. This is costing the rest of us hundreds of billions of dollars each year.
The documents — and there are millions of them — were given to German newspaper Süddeutsche Zeitung. They contain the passport details of 350 Canadians, 12 current or former leaders of countries, 128 current and former politicians and public officials, and never-before-seen details about 214,000 companies.
The personal information, emails and lawyers’ letters contained in the leak reveal details about individuals, lawsuits and corporations, all of which have so far checked out with public records and independent reporting by the Star. There is a wide variety of discoveries. Some examples: A Canadian art research firm is deeply involved in fighting for possession of a $35 million Modigliani painting allegedly looted by the Nazis. The prime minister of Iceland, an island nation devastated economically by its failing banks in 2008, is linked in the leaked database to offshore companies. Indicted FIFA officials, as well as soccer stars such as Lionel Messi, have used the offshore system. The families of top Chinese leaders have used clever and sophisticated ways to disguise their wealth offshore. Associates of Russian President Vladimir Putin secretly moved close to $2 billion through banks and shadow companies.
The Star and our partners, including France’s Le Monde, Britain’s Guardian and the International Consortium of Investigative Journalists, are publishing this material not because we believe something illegal is happening, but because we think Canadians should know about how the elite hide and shelter so much money. The rich get to play by different rules than the rest of us. That’s unfair — and everyone should know about it.