The Spectator

The road to Panama

The answer is a simpler system with flatter rates

issue 09 April 2016

The 11 million documents leaked from Panama lawyers Mossack Fonseca tell us much that we know already. It’s hardly news that the Central American state is a popular destination for those who dislike paying tax. But to obsess about this aspect of the story, as so many did this week, would be to miss the most striking discovery, which is just how many politicians and government officials have been using Panama to disguise their extraordinary wealth.

Few were under any illusions about Vladimir Putin being a good and faithful public servant, yet it comes as a surprise that he appears to have a personal fortune that would have made the tsars look like paupers. According to the International Consortium of Investigative Journalists, which has analysed the 11 million leaked documents, friends and associates of the Russian leader have channelled $2 billion through Panama over the years.

At least 140 other politicians have been using banking facilities in Panama.

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