Pandora papers

There is a parallel system that runs underneath the real system. There are common people who play by the rules and then there are the rich and powerful who bend the rules for their own convenience.

The issue of tax evasion isn't new and individuals and corporations have tried innovative accounting methods to get around it.  There are legal and illegal ways of saving taxes, but the intention remains the same. No wonder there is a far cry amongst commoners to tax the rich. There have been many instances in the past when this tax evasion has leaked causing massive outrage amongst the common tax paying honest people. There has been an increased sense of disgust amongst the common people for the rich and wealthy. These people run a syndicate, which is a system of rich and powerful syphoning not only their own money but money from retail investors and common people and the poor keeps paying for it in different ways.

What are Pandora papers?

Pandora papers like the Panama papers are a series of leaked documents unearthed by a consortium of investigative journalists reflecting the rich and powerful across the world hiding away their money in tax heavens and offshore accounts to evade taxes. 

This is a complex system of offshore shell companies in the name of fake directors and managers used to syphon off money from their own countries into tax heavens, which is then used to buy properties in London, New York and other exotic locations. 

Pandora papers is an expose of this murky system of tax evasion. It has named some of the most rich and powerful people across the globe. Billionaires, politicians, Sportspersons, Actors and so on.

 

What is the significance of Pandora papers?

Pandora papers bring the reality front and center. It is not the first expose of its kind. There have been similar leaks in the past showing this system of tax evasion and money laundering prevailing in our system. Despite innumerable measures taken by the authorities from several countries, the murky system continues to run smoothly. Often, people involved are politicians and administrators, who are supposed to stop these things from happening.

It also comes at a time when disparity in wealth is at an all-time high. Rich is becoming richer while the poor have fallen off the cliff. This is causing a lot of social upheaval in our society. Common people do not trust the rich and powerful. Pandora leaks is going to aggravate this situation caused by the covid pandemic.

 

What would the government and authorities do about Pandora papers?

As mentioned earlier, these aren’t the only leaks. There have been many such leaks in the past. Tax evasion and money laundering is a cat and mouse game that the authorities keep playing with the rich and powerful. Pandora papers will also lead to investigations in many countries. Governments have assured that they will investigate the names that have come up in this leak. It is yet to be seen if anything concrete comes up in these investigations. Until concrete steps are taken to systematically tackle this issue without political interferences, it is really hard to weed out. A system of global interconnected tax system is the only solution to stop this kind of fraud. Money moving around needs to be taxed at source and the process needs to be transparent. It is usually seen that the more complex the system, more frauds take place.