Panama Papers

[BennyHarp]

A simple explanation from Reddit....

"When you get a quarter you put it in the piggy bank. The piggy bank is on a shelf in your closet. Your mom knows this and she checks on it every once in a while, so she knows when you put more money in or spend it.

Now one day, you might decide "I don't want mom to look at my money." So you go over to Johnny's house with an extra piggy bank that you're going to keep in his room. You write your name on it and put it in his closet. Johnny's mom is always very busy, so she never has time to check on his piggy bank. So you can keep yours there and it will stay a secret.

Now all the kids in the neighborhood think this is a good idea, and everyone goes to Johnny's house with extra piggy banks. Now Johnny's closet is full of piggy banks from everyone in the neighborhood.

One day, Johnny's mom comes home and sees all the piggy banks. She gets very mad and calls everyone's parents to let them know.

Now not everyone did this for a bad reason. Eric's older brother always steals from his piggy bank, so he just wanted a better hiding spot. Timmy wanted to save up to buy his mom a birthday present without her knowing. Sammy just did it because he thought it was fun. But many kids did do it for a bad reason. Jacob was stealing people's lunch money and didn't want his parents to figure it out. Michael was stealing money from his mom's purse. Fat Bobby's parents put him on a diet, and didn't want them to figure out when he was buying candy.

Now in real life, many very important people were just caught hiding their piggy banks at Johnny's house in Panama. Today their moms all found out. Pretty soon, we'll know more about which of these important people were doing it for bad reasons and which were doing it for good reasons. But almost everyone is in trouble regardless, because it's against the rules to keep secrets no matter what."

[Declan]

Corporate Media Gatekeepers Protect Western 1% From Panama Leak 

3 Apr, 2016 

Whoever leaked the Mossack Fonseca papers appears motivated by a genuine desire to expose the system that enables the ultra wealthy to hide their massive stashes, often corruptly obtained and all involved in tax avoidance. These Panamanian lawyers hide the wealth of a significant proportion of the 1%, and the massive leak of their documents ought to be a wonderful thing.

Unfortunately the leaker has made the dreadful mistake of turning to the western corporate media to publicise the results. In consequence the first major story, published today by the Guardian, is all about Vladimir Putin and a cellist on the fiddle. As it happens I believe the story and have no doubt Putin is bent.

But why focus on Russia? Russian wealth is only a tiny minority of the money hidden away with the aid of Mossack Fonseca. In fact, it soon becomes obvious that the selective reporting is going to stink.

The Suddeutsche Zeitung, which received the leak, gives a detailed explanation of the methodology the corporate media used to search the files. The main search they have done is for names associated with breaking UN sanctions regimes. The Guardian reports this too and helpfully lists those countries as Zimbabwe, North Korea, Russia and Syria. The filtering of this Mossack Fonseca information by the corporate media follows a direct western governmental agenda. There is no mention at all of use of Mossack Fonseca by massive western corporations or western billionaires – the main customers. And the Guardian is quick to reassure that "much of the leaked material will remain private."

What do you expect? The leak is being managed by the grandly but laughably named "International Consortium of Investigative Journalists", which is funded and organised entirely by the USA's Center for Public Integrity. Their funders include

Ford Foundation
Carnegie Endowment
Rockefeller Family Fund
W K Kellogg Foundation
Open Society Foundation (Soros)

among many others. Do not expect a genuine expose of western capitalism. The dirty secrets of western corporations will remain unpublished.

Expect hits at Russia, Iran and Syria and some tiny "balancing" western country like Iceland. A superannuated UK peer or two will be sacrificed – someone already with dementia.

The corporate media – the Guardian and BBC in the UK – have exclusive access to the database which you and I cannot see. They are protecting themselves from even seeing western corporations' sensitive information by only looking at those documents which are brought up by specific searches such as UN sanctions busters. Never forget the Guardian smashed its copies of the Snowden files on the instruction of MI6.

What if they did Mossack Fonseca database searches on the owners of all the corporate media and their companies, and all the editors and senior corporate media journalists? What if they did Mossack Fonseca searches on all the most senior people at the BBC? What if they did Mossack Fonseca searches on every donor to the Center for Public Integrity and their companies?

What if they did Mossack Fonseca searches on every listed company in the western stock exchanges, and on every western millionaire they could trace?

That would be much more interesting. I know Russia and China are corrupt, you don't have to tell me that. What if you look at things that we might, here in the west, be able to rise up and do something about?

And what if you corporate lapdogs let the people see the actual data?

UPDATE

Hundreds of thousands of people have read this post in the 11 hours since it was published – despite it being overnight here in the UK. There are 235,918 "impressions" on twitter (as twitter calls them) and over 3,700 people have "shared" so far on Facebook, bringing scores of new readers each.

I would remind you that this blog is produced free for the public good and you are welcome to republish or re-use this article or any other material freely anywhere without requesting further permission

[mikehunt]

http://www.breakingnews.ie/ireland/richard-bruton-panama-papers-tax-evaders-will-be-vigorously-prosecuted-728045.html


The Enterprise Minister Richard Bruton says anyone found to be evading tax will be prosecuted.

Mr Bruton was speaking after it emerged more than 300 companies in Ireland are mentioned in the the biggest ever leak of financial information.

The details from a law firm in Panama have exposed the offshore holdings of some of the world's most prominent politicians, celebrities and sport stars, including the Russian President Vladmir Putin and FIFA's ethics committee.

The papers also link a company registered on Botanic Avenue in Drumcondra in Dublin to international arms deals.

Minister Bruton, says if there is any evidence of wrongdoing, it will be dealt with.

He said: "Well these are clearly concerns and as you know the government have been very active in developing through the so-called BEPS process through the OECD.

"Obviously if there are offences of Irish law discovered in this, you can be absolutely sure they will be vigorously prosecuted - but at this point we don't know that."

Ha ha, yeah sure it will Richard.

[armaghniac]

http://www.breakingnews.ie/ireland/richard-bruton-panama-papers-tax-evaders-will-be-vigorously-prosecuted-728045.html

Minister Bruton, says if there is any evidence of wrongdoing, it will be dealt with.

I'm sure it will, it won't be up to Richard but to the Revenue, who are fairly proactive on these matters.

[mikehunt]

http://www.breakingnews.ie/ireland/richard-bruton-panama-papers-tax-evaders-will-be-vigorously-prosecuted-728045.html

Minister Bruton, says if there is any evidence of wrongdoing, it will be dealt with.

I'm sure it will, it won't be up to Richard but to the Revenue, who are fairly proactive on these matters.

Ha ha sure they will Armaghniac. God bless your naivety.

http://www.independent.ie/irish-news/not-one-person-prosecuted-for-ansbacher-scam-29150283.html

[The Subbie]

Even if the great and the good are up to their neck in it ?
It'll be the usual Moriartyesque fudge.
Meanwhile the normal man on the street will do hard time for not paying the TV licence fee.

[Hound]

http://www.breakingnews.ie/ireland/richard-bruton-panama-papers-tax-evaders-will-be-vigorously-prosecuted-728045.html

Minister Bruton, says if there is any evidence of wrongdoing, it will be dealt with.

I'm sure it will, it won't be up to Richard but to the Revenue, who are fairly proactive on these matters.

Ha ha sure they will Armaghniac. God bless your naivety.

http://www.independent.ie/irish-news/not-one-person-prosecuted-for-ansbacher-scam-29150283.html

Did you read the article?

Not only did they collect the €50m due in tax, they collected another €62m on top of that in interest and penalties.
Happened far too long ago to have any hope of successful court prosecution, but getting the money off the cheaters, was the main thing.

If you are named on any of these lists, you are 100% certain to get a letter from Revenue asking you to explain.

[mikehunt]

http://www.breakingnews.ie/ireland/richard-bruton-panama-papers-tax-evaders-will-be-vigorously-prosecuted-728045.html

Minister Bruton, says if there is any evidence of wrongdoing, it will be dealt with.

I'm sure it will, it won't be up to Richard but to the Revenue, who are fairly proactive on these matters.

Ha ha sure they will Armaghniac. God bless your naivety.

http://www.independent.ie/irish-news/not-one-person-prosecuted-for-ansbacher-scam-29150283.html

Did you read the article?

Not only did they collect the €50m due in tax, they collected another €62m on top of that in interest and penalties.
Happened far too long ago to have any hope of successful court prosecution, but getting the money off the cheaters, was the main thing.

If you are named on any of these lists, you are 100% certain to get a letter from Revenue asking you to explain.

Well I did post up the link so yes, I did read the article. You reckon Ireland is a no go area for tax avoiders/evaders because of this? A slap on the wrists by way of a fine? Quaking in their boots after that one. White Collar crime is indelible in this country. To my knowledge only one person has ever been convicted of insider trading in Ireland. Wealthy individuals and corporations are well looked after here. Lack of legislation ensures no laws are broken and lack of resources given to the likes of the DOCE mean that any laws that are broken are rarely followed. How many have been successfully prosecuted for what happened in the crash? Three directors of Anglo is all I can think of. Moriarty tribunal, multi national corpo tax etc etc etc.

[armaghniac]

You may well have a point about lack of legislation and that is down to the likes of Bruton. My point was the Revenue do make a strong effort with the lowers available to them.

[J70]

These boys are no different to anyone who, for instance, has taken/paid cash for a job to avoid paying VAT on it.  They're doing the exact same thing on a bigger scale.  Hands up anyone who can say they've never done something like that.

I sold xmas trees for a few days one xmas for cash. Think I got cash once for a day loading a freezer boat in Killybegs when I was 16 or 17 when they called in help to meet a deadline. And a neighbour once gave me 20 pounds for baling his hay for him.

Does that put me on the same moral plane as someone putting millions or even billions out of reach of the taxman?

If your main reason for taking cash was so you could avoid paying whatever tax was due on the money, then yeah.  I don't see how you can argue otherwise.  Exact same thing - different scale.

*Actually, if you want to get really fussy, you were worse, as (if I've got it right) what these boyos were up to was strictly speaking legal.

So accepting a few quid here and there for a day's work as a teenager might be morally worse than systematic cheating of your government out of millions and billions, depending on whether it was accomplished  through some legal loophole?

[mikehunt]

You may well have a point about lack of legislation and that is down to the likes of Bruton. My point was the Revenue do make a strong effort with the lowers available to them.

Revenue, due to the powers given to them wouldn't be great at tackling the rich and powerful so are complicit in transferring wealth from the poor to the rich. They were set up to put manners on John Joe Soap. Doubt many MNC's pay the full 12.5% rate and that falls under their remit I think. No appetite to tackle this. Overlords will be having a quite word in Revenue's ear to leave well alone unless it gets too noisy.

[Franko]

These boys are no different to anyone who, for instance, has taken/paid cash for a job to avoid paying VAT on it.  They're doing the exact same thing on a bigger scale.  Hands up anyone who can say they've never done something like that.

I sold xmas trees for a few days one xmas for cash. Think I got cash once for a day loading a freezer boat in Killybegs when I was 16 or 17 when they called in help to meet a deadline. And a neighbour once gave me 20 pounds for baling his hay for him.

Does that put me on the same moral plane as someone putting millions or even billions out of reach of the taxman?

If your main reason for taking cash was so you could avoid paying whatever tax was due on the money, then yeah.  I don't see how you can argue otherwise.  Exact same thing - different scale.

*Actually, if you want to get really fussy, you were worse, as (if I've got it right) what these boyos were up to was strictly speaking legal.

So accepting a few quid here and there for a day's work as a teenager might be morally worse than systematic cheating of your government out of millions and billions, depending on whether it was accomplished  through some legal loophole?

I'll repeat.

If your main reason for taking cash was so you could avoid paying whatever tax was due on the money, then yeah.  I don't see how you can argue otherwise.  Exact same thing - different scale.

It's the same attitude - "I know I should be paying this, but I'm gonna skirt the system so I can keep the money".

If same teenager comes into serious wealth later in life, do you think that attitude's going to change?

[Hound]

You may well have a point about lack of legislation and that is down to the likes of Bruton. My point was the Revenue do make a strong effort with the lowers available to them.

Revenue, due to the powers given to them wouldn't be great at tackling the rich and powerful so are complicit in transferring wealth from the poor to the rich. They were set up to put manners on John Joe Soap. Doubt many MNC's pay the full 12.5% rate and that falls under their remit I think. No appetite to tackle this. Overlords will be having a quite word in Revenue's ear to leave well alone unless it gets too noisy.

It is remarkable how some sections of the media have managed to persuade many people that MNCs don't pay 12.5% on their Irish profits. And that payments such as royalties to parent companies for the use of brand names and technology are somehow false, when the OECD has rules setting how exactly what is fair and what isn't, and Ireland follows those rules. The fact of the matter is, despite what some idiots in the media might try and portay, Irish tax resident companies pay tax at 12.5% on their profits.

Yes, the Revenue will go after John Joe Soap, and will nail him if he doesn't pay his tax. But a number of years ago they set up a Large Cases Division, directly to go after the big taxpayer to ensure the Irish Exchequer gets what's due to it.

The Apple case is the one that smells bad from an Irish point of view, which is why the EU have gone after it. But its a very different strucuture to the ones most of the famous MNCs in Ireland use. Unlike most of the others it seems that was ruling based rather than based on OECD rules, but that happened in 1980, a long time ago.

[mikehunt]

You may well have a point about lack of legislation and that is down to the likes of Bruton. My point was the Revenue do make a strong effort with the lowers available to them.

Revenue, due to the powers given to them wouldn't be great at tackling the rich and powerful so are complicit in transferring wealth from the poor to the rich. They were set up to put manners on John Joe Soap. Doubt many MNC's pay the full 12.5% rate and that falls under their remit I think. No appetite to tackle this. Overlords will be having a quite word in Revenue's ear to leave well alone unless it gets too noisy.

It is remarkable how some sections of the media have managed to persuade many people that MNCs don't pay 12.5% on their Irish profits. And that payments such as royalties to parent companies for the use of brand names and technology are somehow false, when the OECD has rules setting how exactly what is fair and what isn't, and Ireland follows those rules. The fact of the matter is, despite what some idiots in the media might try and portay, Irish tax resident companies pay tax at 12.5% on their profits.

Yes, the Revenue will go after John Joe Soap, and will nail him if he doesn't pay his tax. But a number of years ago they set up a Large Cases Division, directly to go after the big taxpayer to ensure the Irish Exchequer gets what's due to it.

The Apple case is the one that smells bad from an Irish point of view, which is why the EU have gone after it. But its a very different strucuture to the ones most of the famous MNCs in Ireland use. Unlike most of the others it seems that was ruling based rather than based on OECD rules, but that happened in 1980, a long time ago.

So the likes of Google, Apple and Facebook don't get preferential treatment when compared to their indigenous counterpart?

[Hound]

You may well have a point about lack of legislation and that is down to the likes of Bruton. My point was the Revenue do make a strong effort with the lowers available to them.

Revenue, due to the powers given to them wouldn't be great at tackling the rich and powerful so are complicit in transferring wealth from the poor to the rich. They were set up to put manners on John Joe Soap. Doubt many MNC's pay the full 12.5% rate and that falls under their remit I think. No appetite to tackle this. Overlords will be having a quite word in Revenue's ear to leave well alone unless it gets too noisy.

It is remarkable how some sections of the media have managed to persuade many people that MNCs don't pay 12.5% on their Irish profits. And that payments such as royalties to parent companies for the use of brand names and technology are somehow false, when the OECD has rules setting how exactly what is fair and what isn't, and Ireland follows those rules. The fact of the matter is, despite what some idiots in the media might try and portay, Irish tax resident companies pay tax at 12.5% on their profits.

Yes, the Revenue will go after John Joe Soap, and will nail him if he doesn't pay his tax. But a number of years ago they set up a Large Cases Division, directly to go after the big taxpayer to ensure the Irish Exchequer gets what's due to it.

The Apple case is the one that smells bad from an Irish point of view, which is why the EU have gone after it. But its a very different strucuture to the ones most of the famous MNCs in Ireland use. Unlike most of the others it seems that was ruling based rather than based on OECD rules, but that happened in 1980, a long time ago.

So the likes of Google, Apple and Facebook don't get preferential treatment when compared to their indigenous counterpart?

Correct re Google and Facebook.
Apple's tax ruling is from 1980 and the EU is investigating whether it gave them preferential treatment.