Maybe most of us have heard about Panama Papers scandal. But do you know about it?
Panama papers case is a look at offshore accounts used to hide wealth and avoid taxes.
The use of offshore accounts and favorable laws in certain countries can allow rich individuals and families to keep their money hidden from the eyes of tax authorities, regulators and others in their home country.
What are These Accounts?
They are bank accounts or trusts established in a foreign country that take advantage of local banking and corporate laws to help hide the true identity of the owner of the money or other assets in the accounts.
Often the person establishes a so-called shell company, which lacks any al operations and exists mainly on paper.
The company with no person linked to it is listed as the official owner of the trust or account.
That allows the wealthy person to control the account inditectly, through the company and makes it harder for authorities to link the money to the individual.
While shell companies and offshore accountes aren’t illegal by themselves, they can be used to help avoid taxes, facilitate money laundering and conceal corruption.
Where Are Offhore Accounts Held
Most of the accounts held on small island countries such as Panama, Bermuda, Isle of Man , Macau , COok Islands. (News24.com)
That’s some short introduction about the panama papers. Read this info about panama papers by the numbers