What Is the Panama Papers Scandal? Tax Evasion of World Leaders, Rich and Powerful People

By Mark Aserit
Panama papers scandal
Latest on Panama papers scandal

The Panama scandal has been hogging the news headlines this week, and its documents revealed how the rich and powerful people use tax havens. 

According to Forbes, the Panama papers are confidential documents that were leaked from Mossack Fonseca, a law firm based in Panama. According to the company's website, it offers legal and trust services to different countries worldwide such as United Kingdom, Malta, Hong Kong, Belize, The Netherlands, Costa Rica, Cyprus, British Virgin Islands, Bahamas, Samoa, Nevada, and Wyoming. Some of these countries are labeled as tax havens.

A tax haven is a country or territory where certain taxes are levied at very low rate.

As for the number of documents involved in the leak, news websites report it contains 11.5 million confidential documents. The same source from Forbes says it is one of the largest leaks in history, even bigger than the documents revealed by Edward Snowden. Estimates show the documents are approximately 2.6 terabytes in computer storage. To imagine how big it is, 1 terabyte of data is equivalent to 220 DVDs or 1400 CD-ROMs.

CNN reported an anonymous source gave the leaked documents to Suddeutsche Zeitung of Germany and the newspaper shared them to  International Consortium of Investigative Journalists (ICIJ). After that, other media firms like BBC, the Guardian and McClatchy reported the documents.

The files reveal the secret transactions of 29 billionaires featured in Forbes Magazine's list of the world's 500 richest people. It also mentioned the brother-in-law of China's President Xi Jinping, Argentina President Mauricio Macri, Ukraine President Petro Poroshenko and the late father of UK Prime Minister David Cameron.

Furthermore, the leak also pointed out more than 500 banks under nearly 15,600 shell companies with Mossack Fonseca.

With that being said, it is important to take note that owning an offshore company or creating an offshore trust isn't an illegal activity. In fact, it is legal in most countries like in the United States. However, what is illegal is using that offshore trusts to hide assets from creditors or evading taxation. 

The investigating team wants to find the true owners of the money and the origin of the money. Lastly, they also want to know how the people mentioned in the document evaded huge amount of taxes.

    Most Popular
  • Is 'The Last Supper' worth watching? Audience and critics weigh in

    Is 'The Last Supper' worth watching? Audience and critics weigh in

    Faith-based films often receive mixed reactions, and The Last Supper is no exception. The movie attempts to bring a fresh perspective to one of the most iconic moments in Christian history, but does it succeed? Some reviews from critics and audiences provide insight into its strengths and shortcomings.

  • ‘The Chosen’ Season 5: The darkest season yet—What to know before watching

    The wait is over—The Chosen is back with its fifth season, and this time, things are getting intense. The new episodes dive straight into the final days of Jesus’ life, covering some of the most emotional and dramatic moments in the Bible. If you’ve been following the series, you already know that The Chosen isn’t just about retelling familiar stories—it’s about bringing them to life in a way that feels real.

  • Massacres in Syria: Over 1,000 dead, including Christians and Alawites

    Syria’s coastal regions have been devastated by a series of massacres, with reports indicating that over 1,000 people—many from Christian and Alawite communities—have been killed in brutal attacks. Entire families have been wiped out, and survivors are fleeing in search of safety as sectarian violence escalates.

  • Kim Sae-ron and Wheesung: The tragic irony of Korean society and the principles of happiness

    Not long ago, the media was in an uproar over actress Kim Sae-ron’s passing. Just months before, the same people who had relentlessly criticized her for her DUI incident were now expressing sympathy, saying, "The world was too harsh on her." The irony is impossible to ignore.

  • Newsboys move forward as a quartet after Michael Tait’s departure

    After more than a decade as the lead singer of the Newsboys, Michael Tait has officially parted ways with the band, marking a significant shift in the Christian rock group’s lineup. The remaining members—Jeff Frankenstein, Jody Davis, Duncan Phillips, and Adam Agee—have assured fans that they will continue forward, embracing a new season of music and ministry.

Top Stories