False accusations
According to the ICIJ report, Mossack Fonseca, which has branches in Hong Kong, Zurich and more than 35 other international locations, said in a written response that it, “does not foster or promote illegal acts”.
It added: “[…] allegations that we provide shareholders with structures supposedly designed to hide the identity of the real owners are completely unsupported and false.”
The firm also allegedly said the backdating of documents was “a well-founded and accepted practice” that was “common in our industry and its aim is not to cover up or hide unlawful acts”.
Combatting evasion
“The revelations emerging from the release of the files are staggering, and probably represent the biggest single advance in the fight to combat tax evasion in more than 40 years,” said Sean Wakeman, tax investigations partner at Crowe Clark Whitehill.
“We have seen many examples in recent years of overseas banks encouraging UK individuals with bank accounts to settle monies in offshore trusts and place monies in overseas bank accounts to side step EU savings directives (and withholdings of tax at source) or to get round the UK Swiss taxation agreement.”
Wakeman said: “Anyone in such a position must now take urgent action to make a voluntary tax disclosure to avoid hefty fines or even criminal sanctions.”
Three years ago, leading up to a G8 summit, the BBC reported that David Cameron had called on British offshore jurisdictions to get their “houses in order’ regarding tax treatment and transparency.
The territories included Bermuda, BVI, Cayman Islands, Gibraltar, Anguila, Montserrat, the Turks and Caicos Islands, Jersey, Guernsey, and the Isle of Man.
The full ICIJ report can be found by clicking here.
The BBC Panorama programme will be broadcast on 4 April at 1930 GMT.
