atans1

Will the Feds kill a chicken to frighten the monkeys?

In Uncategorized on 10/06/2016 at 1:27 pm

Panama law firm caught with pants downMight go the way of Arthur Andersen if the US decides to kill a chicken to frighten the monkeys.

From NYT Dealbook

PANAMA PAPERS SHOW HOW RICH U.S. CLIENTS HID MILLIONS ABROAD The New York Times’s examination of the Panama Papers has found that Mossack Fonseca had at least 2,400 United States-based clients over the past decade and set up at least 2,800 companies on their behalf in the British Virgin Islands, Panama, the Seychelles and other jurisdictions that specialize in helping to hide wealth. The trove of internal documents from the law firm were obtained by the German newspaper Süddeutsche Zeitung and the International Consortium of Investigative Journalists, and has now been shared with The Times.

The documents show that Mossack Fonseca did much more than create offshore shell companies and accounts, Eric Lipton and Julie Creswell report. For many American clients, the firm offered a guide to skirting or evading United States tax and financial disclosure laws.

The methods included locating an individual from a “tax-convenient” jurisdiction to be the straw man owner of an offshore account or encouraging a client to use his foreign passports to open offshore accounts and avoid regulatory scrutiny. If the compliance department at one foreign bank contacted by Mossack Fonseca asked too many questions, the firm simply turned to other, less inquisitive banks. The firm’s clients included people with criminal records, in spite of its public stance of not working with individuals convicted of crimes.

Federal law allows United States citizens to transfer money overseas, but these foreign holdings must be declared to the Treasury Department, and any taxes on capital gains, interest or dividends must be paid. Federal officials estimate that the government loses $40 billion to $70 billion a year in unpaid taxes on offshore holdings.

Experts who examined the documents were reluctant to declare that the law firm or its clients had broken any laws given that no charges had been filed, but they did say that they were surprised at how explicitly Mossack Fonseca had offered advice that appeared carefully crafted to help clients avoid United States tax laws.

Mossack Fonseca has said repeatedly that it had honored international tax and banking laws, but presented with summaries of several cases by The Times, it did not try to explain its actions. “Our significantly expanded compliance office today not only evaluates new client candidates, but also existing accounts, and especially those that were established prior to the new international regulatory regime coming into effect,” a representative said in a written statement, referring to a 2010 law passed by Congress. “It wasn’t always this way.”

The American client list does not appear to include the sort of high-profile political figures that have emerged in other parts of the world, but Mossack Fonseca’s services were in high demand by the rich and famous in the United States. Read more about them here.

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  1. When are you going to comment on the Singaporean names in the list??? 🙂

    • I find nothing of interest. Why don’t u tell me in detail waz so interesting about the names? I’ve been involved in the use of such cos for reasons no one except loonies like Roy will disapprove of.

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