First off and foremost, you might be asking: what are the Panama Papers?
The Panama Papers are 11.5 million documents and 2.6 terabytes of data that reveal the rich and powerful people of the world concealing their wealth. These documents have alleged relation to Panama law firm Mossack Fonseca. The firm aided in the development of secret shell companies and offshore accounts.
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What is an Offshore Tax Haven?
A tax haven is a place where taxes are reduced or nonexistent. These havens can be loopholes for reducing the taxes of the wealthy. Â They also can be the lynchpin in tax avoidance schemes, which is why the Panama Papers are such a huge deal.
What is a shell company?
A shell company looks like a real company on paper, but is used to avoid taxes. The panama Papers show that world leaders have used shell companies to move money into U.S. real estate.
Who is in danger?
The documents reference 12 current/former world leaders and 128 politicians/public officials.
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What action has taken place so far?
The first casualty was the resignation of Iceland’s Prime Minister. FIFA, the international soccer governing body, was also accused of concealing money.
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