Panama Papers: Inside the shady world of tax havens - Counting the Cost

The Panama Papers shocked the world this week when a massive leak of 11.5 million tax documents exposed the secret dealings of hundreds of thousands of people, including world leaders and celebrities, and how they use shady financial mechanisms to avoid paying taxes and hide their wealth.

Linking at least 12 current and former heads of state and 143 politicians to illicit financial transactions, the documents revealed how Mossack Fonseca, a Panama-based law firm, allegedly used banks, law firms and offshore shell companies, from 1977 to the end of 2015, to help hide its clients assets.

While the disclosures have since led to the resignation of one world leader, Sigmundur Davio Gunnlaugsson, the Icelandic prime minister; the problem goes beyond mere individuals.

The Panama Papers have exposed that most of the work Mossack Fonseca and the rest of the wealth-management industry do is perfectly legal.

On this special edition of Counting the Cost, we take a closer look at tax havens and the legality behind them.

Alex Cobham, a director of research at the Tax Justice Network, joins the programme to discuss the loopholes that allow tax-dodging.

Stewart Patton, a US tax attorney based in Belize City, discusses the possible fallout for tax havens following the release of the Panama Papers.

We also speak to James S Henry, a senior fellow at Columbia University's Center for Sustainable Investment, about the absence of American billionaires and companies on the leaked list and how the US, the world's biggest economy, is surprisingly a top tax haven.

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[mile]

4 years later...who is in prison? Julian Assange

[TulipaBigDipa]

Don't let the background music play to long in the intro, I could hardly hear what the bloke was saying at the start.

[robithevampire]

The background music is like a fresh graduate who was given a "need expertise" job

[christophemeathrel]

Why the annoying loud music in the intro impossible to concentrate on what was being introduced.

[kipropkigz]

The pressure against Panama is Absurd... as long as i haven't touched your money, how i make mine should never be any of your business....

[ElectedOfficial]

Legal is as legal does and only the private sector must follow the law. No one must follow laws that make them, state, state agencies, government, and the elite. Executive orders keep it safe for them.

[ElectedOfficial]

The news is finally working FOR US. UNBELIEVABLE

[sydyidanton]

Remarkable teamwork and terrific exposé, yet no consequences due to pathetic laws that facilitate this theft. The little guy would take a tumble for taxation fraud/evasion though and likely head off to jail. With brazen arrogance and repugnant greed!the billionaires enjoy all the benefits from taxpayer contribution without actually having to spare a dime! That’s fair.

[labocaman]

I work in the offshore banking industry and a lot has been failed to mention here....

[gabbarsingh]

I really don’t understand if someone has over a hundred million pounds, what difference does it make even if a quarter of their wealth goes in taxes?

[sharongillesp]

People and organizations can make all the changes in the financial system that they want.
These people have powerful, intelligent and creative lawyers doing their bidding.
AND, these are the same people who hire lobbyists to campaign on their behalf to the American legislation, judicial and executive branches.
All we can do is go with the flow.
Journalists research and write stories, news reports come out with accusations...but stepping down and resigning is nothing more than a slap on the hand.
Nothing happens.
Entire civilizations are lost and destroyed...along with the wealthy too...the Panama Papers show how.

[noreenhappel]

So if there''s nothing to hide, why are so busy hiding their money

[sistarkenyasue]

Yes I see the absence of The Usual suspects here.

[manojkrishna]

Please give us more information on India's black money! Why did Hosni Mobarak make Amitabh Bachchan popular in Egypt? Was Amitabh Bachchan Gamal Mobarak's business partner?

[ozymandiascakehole]

Sounds like you're not paying your sound designer. Throw the guy a bone

[jamesstevens]

Hiding money is nothin new but when u see how much I'm surprised govt of all countries whom aren't benifiting from the hiding money should b thinking how do we stop this I'm poor broke actually and I gotta pay taxes why should some millionaire not pay taxes

[williamhelfrich]

Exposing tax Haven's is in the mandate of the department of Justice, 💤💤💤

[justgivemethetruth]

One has to wonder if this had something to do with putting Panamanian President General Manuel Noriega in US prison for life?

[clutchflutie]

Precisely why you should take the BernieOrBust pledge.

[hgar]

How interesting, Al Jazeera focused on India and elsewhere while omitting the over fifty Islamic countries where its leaders and rich people are certainly not clean!