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Impact Of The Panama Papers On Tax Evasion

Impact Of The Panama Papers On Tax Evasion

With data from a Panama law firm still rocking the financial world, plenty of leaders across Europe are taking measures to try and clamp down on tax evasion. The truth is that tax evasion is something that everyone knows about. We all know that rich individuals and companies take certain steps to ensure their money is safe from taxation. However, the Panama Papers provided detailed accounts of how this happens, with information on each individual that moved money through that firm’s help.

Foreign ministers from the United Kingdom, Germany and France have all said that they will do everything that can to put a stop to this tax evasion among the world’s wealthiest individuals. A lot of people believe that tax evasion is the single greatest financial problem facing a lot of first and third-world countries. In fact, the Jobs, Growth and Competitiveness Minister from the EU said that tax evasion was a cancer that everyone had to solve. “It is a bad disease, such as a cancer of the market economies,” he said.

The minister believes that there are many great things about the capitalistic market economy, because it gives people a chance to get rewarded for their hard work and dedication. Everyone has the chance to create and store their wealth. However, the problem happens when some people want to take all the benefits without paying their share of taxes. This creates an unfair environment where money is going out when the government should be receiving millions and billions in taxes.

The Panama Papers exposed the harsh reality of tax avoidance, with certain politicians finding their names in the papers too. The name of David Cameron, the current Prime Minister of the United Kingdom, made its way into the papers as well. The Panama Papers showed that Cameron’s father, who is now dead, had an investment company that would avoid UK taxes by holding their board meetings in other countries.

Eventually Mr. Cameron admitted that he did have a stake in that company at one time. However, he assured the public that when he sold his stake for 30,000 pounds, he paid the full spectrum of UK taxes on that money.

David Cameron is not the only man who is under fire after information published in those papers. Leaders from many countries, such as Iceland, found themselves under attack from the general public after the release of the Panama Papers. This leak shows us the truth about how far rich individuals are willing to go in order to protect and maximize their wealth.