What are Panama Papers all about? Read to know

Lucknow: The Panama Papers, which on Friday toppled Nawaz Sharif as the Prime Minister of Pakistan, are a set of over 11.5 million leaked documents that exposed financial and attorney-client information for more than 2,14,488 offshore companies.

These documents, which also comprise some papers dated back to the 1970s, belonged to the Panamanian law firm and corporate service provider Mossack Fonseca. The documents were leaked by an anonymous source in 2015.

The leak had exposed a system that helped in execution of crime, corruption and wrongdoings using the shield of secretive offshore entities.

The leaked data is of nearly 40 years starting from 1977 to the end of 2015. It was a global investigation that divulged how the rich and powerful people of the world floated offshore companies to hide their actual assets and skirt rules.

The records were shared by an anonymous source with the German newspaper Süddeutsche Zeitung, which subsequently shared the docs with the International Consortium of Investigative Journalists (ICIJ). The ICIJ also shared the leaked papers with a large network of international partners including the Guardian and the BBC.

What the Panama Papers reveal?

The documents exposed innumerable ways how the rich and powerful people of the world exploited secretive offshore tax regimes. Among the 143 politicians named in the expose, there were twelve national leaders, their families and close aides from around the world.

The records divulged a list of individuals who paid some amount of money to the firm to enjoy the benefits of the secretive tax regulatory system in which it used to float offshore entities in tax heavens around the globe.

Also Read: Pakistan Supreme Court disqualifies PM Nawaz Sharif

It may be mentioned that the offshore business entities are legal but a few reporters found out that some of the Mossack Fonseca shell corporations were used for illegal purposes such as fraud, tax evasion and escaping international sanctions.

About Mossack Fonseca:

It is a Panama-based law firm which provides services like forming companies in offshore jurisdictions such as the British Virgin Islands. It manages offshore firms and charges them on yearly basis. Wealth management is also one of the services it provides.

The top names on the Panama Papers:

The revelation exposed the offshore financial irregularities practised by many politicians including Russian President Vladimir Putin, Pakistan Prime Minister Nawaz Sharif and Chinese President Xi Jinping. Legendary Football player Lionel Messi, from Argentina, is also mentioned in the list.

The Panama Papers have mentioned the names of more than 500 Indian including Amitabh Bachchan, Aishwarya Rai Bachchan, several politicians, DLF’s KP Singh and Apollo Tyres promoter in the list of tax evaders.

How the leaked papers were brought to light?

The International Consortium of Investigative Journalists (ICIJ), joined hands with the German newspaper Suddeutsche Zeitung and over 100 other media partners, including the Indian Express from India.

All these organisations spent a year examining these 11.5 million papers to expose the offshore holdings of world political leaders, links to global scandals, and details of the hidden financial dealings of "fraudsters, drug traffickers, billionaires, celebrities, sports stars and more", the consortium had said on its website.

Pakistan Supreme Court on Friday disqualified its country’s Prime Minister Nawaz Sharif, after a probe team, on the basis of leaked Panama Papers, found his wealth far above his earnings. In an unanimous decision, the judges ruled that the Prime Minister had been dishonest to the Parliament and the courts and could not be deemed fit to hold office.

India, however, still seems careless towards the major leak that shook the world and has most recently affected the political scenario of its neighbouring country.