Poor Panama

This post is also available in: Español (Spanish)

Jürgen Mossack and Ramon Fonseca are the owners of the Panamanian Law Firm Mossack & Fonseca.  This Firm is being almost a for a week monopolizing the headline news of the world after the publication of the so-called ‘Panama Papers “. This research is having such a global impact that even the Iceland’ Prime minister has resigned this past week.  Many investigations in governments and parliaments in Europe have been announced, as well as in other countries in the world, like Argentina or Chile.

But which is the relevance of these papers? perhaps the famous names of those persons appearing in these papers? perhaps the existence of Tax paradises? Or the 8 billion $ estimated in these Tax paradises? Indeed, this is a very significant amount, it is about the 8% of the global wealth.

In my opinion this scandal is being a great exercise in hypocrisy. We have known for a long time of the existence of these tax paradises; some neighbouring countries such as Luxembourg or Switzerland have left to be it since a short time ago….  Furthermore, in Europe there are the Jersey Islands, or Gibraltar, in this very last colonial enclave in Europe are registered more than 80,000 companies Off-Shore, more than 3 times the population of the rock!

Any good tax advice office in Europe should have tax experts indicating to their clients the legal means to avoid paying taxes, including the off-shore companies in tax paradises. This is nothing new. I do not understand why something that is being known since so long ago became a scandal right now. This is doing a great harm to Panama as a country when it has nothing to do with its government. I think this is a big hypocrisy, and just a way to sell more newspapers. Nothing more.

 

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