Apple, Queen Elizabeth, Trump’s henchmen, others indicted in Paradise Papers
A number of stories are appearing in a week-long expose of how politicians, multinationals, celebrities and high-net-worth individuals use complex structures to protect their cash from higher taxes.
As with last year’s Panama Papers leak, the documents were obtained by the German newspaper Süddeutsche Zeitung, which called in the International Consortium of Investigative Journalists (ICIJ) to oversee the investigation. BBC Panorama and the Guardian are among the nearly 100 media groups investigating the papers.
The Paradise Papers name was chosen because of the idyllic profiles of many of the offshore jurisdictions whose workings are unveiled, including Bermuda, the HQ of the main company involved, Appleby. It also dovetails nicely with the French term for a tax haven – paradis fiscal. Then again, the Isle of Man plays a big part.
Who is being exposed?
The offshore financial affairs of hundreds of politicians, multinationals, celebrities and high-net-worth individuals, some of them household names, have been revealed. The papers also throw light on the legal firms, financial institutions and accountants working in the sector and on the jurisdictions that adopt offshore tax rules to attract money. The top stories so far include:
Apple has protected its low-tax regime by using the Channel Island of Jersey
Formula 1 champion Lewis Hamilton avoided tax on his £16.5m luxury jet, the papers suggest
The Queen’s private estate invested about £10m offshore including a small amount in the company behind BrightHouse, a chain accused of irresponsible lending
One of President Donald Trump’s top administration officials kept a financial stake in a firm whose major partners include a Russian company part-owned by President Vladimir Putin’s son-in-law
A Lithuanian shopping mall partly owned by U2 star Bono is under investigation for potential tax evasion
How three stars of the hit BBC sitcom, Mrs Brown’s Boys, diverted more than £2m into an offshore tax-avoidance scheme
One of the world’s largest firms loaned a businessman previously accused of corruption $45m and asked him to negotiate mining rights in a poor central African nation
The Isle of Man passed a law that would help tax evaders, the documents show
A key aide of Canada’s PM has been linked to offshore schemes that may have cost the nation millions of dollars in taxes, threatening to embarrass Justin Trudeau
Lord Ashcroft, a former Conservative party deputy chairman and a significant donor, may have broken the rules around how his offshore investments were managed. Other papers suggest he retained his non-dom tax status while in the House of Lords, despite claiming to have become resident in the UK
How questions were raised about who is controlling Everton FC
An oligarch with close links to the Kremlin may have secretly taken ownership of a company responsible for anti-money laundering checks on Russian cash
How a UK company exploited an anti-tax avoidance law to actually save itself tax
Where do the Paradise Papers come from?
There are more than 1,400GB of data, containing about 13.4 million documents. Some 6.8 million come from the offshore legal service provider Appleby and corporate services provider Estera. The two operated together under the Appleby name until Estera became independent in 2016. Another six million documents come from corporate registries in some 19 jurisdictions, mostly in the Caribbean. A smaller amount comes from the Singapore-based international trust and corporate services provider, Asiaciti Trust. The leaked data covers seven decades, from 1950 to 2016.
What is Appleby?
A law firm that helps corporations, financial institutions and high-net-worth individuals set up and register companies in offshore jurisdictions.
Founded in Bermuda and with a history dating back to the 1890s, it has become one of the largest and best known of about 10 major companies involved in the specialist arena. The leak shows the US dominates Appleby’s client register, with more than 31,000 US addresses for clients. There were more than 14,000 UK addresses and 12,000 in Bermuda. BBC