On 3 April 2016 the so called "Panama Papers" were leaked by the International Consortium of Investigative Journalists. Over 11,5 million (!) files from the database of the fourth biggest offshore law firm, Mossack Fonseca, were leaked. The leaks expose how many rich people that include prominent politicians are making use of secretive offshore tax regimes, effectively avoid paying tax at home. Big "fishes" so far that are mentioned in the leaks are the Russian President, the Ukrainian President, the brother-in-law of the Chinese President, the Prime Minister of Pakistan, the former President of Iraq, the current Prime Minister of Iceland, the father of UK Prime Minister David Cameron, and many more. The leak could lead to several political repercussions in different countries.

Although the constructions are usually legally correct, they raise serious moral questions as it confirms the image of rich people not paying their fair share of taxes while ordinary citizens do.

Mossack Fonseca itself is a Panama based law firm which provides services such as incorporating companies in offshore jurisdictions such as the British Virgin Islands. Wealth management is also one of its services. Different sources with additional background information is provided below, as well as how the offshore system works.

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