Sri Lanka, Panama Papers & Secret Bank Accounts Of World Leaders
By Sarath Wijesinghe –May 22, 2016
Sarath Wijesinghe
Panama is a tiny Nation with the population of 3.9 million and GDP of $ 47 / 47.3 Billon. It is a Republic in Central America gained Independence from Spain and Colombia to be a Republic. With the backing from USA she gained independence in 1908 after the controversial Panama Canal was built on the USA assistance and the army. It has been an undeveloped abundant fishing village with the capital as Panama City. It is the largest economy in Central America with human development ranking at 5th in Central America. It has become famous again with the revelations published by a consortium of investigative journalists ( ICIJ), on hidden assets invested in Offshore Companies, leaving Iceland’s Prime Minister Ducks, as one of the victims and casualties amongst others. FIFA Leaders, Putin’s Men, Cameron’s family members, Fitzgibbon who supposed to have ruined Azerbaijan, Top Chinese Leaders, Top USA personal and ballooners, Politicians, Spanish Ministers, are the names among the documents published known as “Leaked documents” accused to be parties of major transections on investments, money laundering, savings to avoid tax and other payments in their respective jurisdictions paying low taxes and maintain low profile. Panama became famous as one of the leading and prosperous offshore centres in the world with large and influential clients. Some Sri Lankan Names are also in the list published by the investigative journalists.
Offshore Companies Worldwide
Offshore companies are a part of the world banking system to invest with low taxes and away from respective local jurisdictions. Money invested could be legal and illegal. Funds raised from outside sources and local earnings with international connections in large sums have been invested in Tax Havens worldwide primarily to be in a low profile in own country and pay less or no taxes on the amounts’ invested. This is a common and frequently and openly used mechanism utilized by many countries in the world to be profiteering out of the funds belongs to others. It is an uncertain moot issue on the legality of the Offshore Companies and investments recognized by the governments. Australia, Bahamas, Bahaman, Barbados, Bermuda, Belgium, Brazil, Canada, France, Germany, India, Iceland, Isle of Man, Israel, Italy , Japan, Malaysia, Maldives Islands, Netherlands, Panama, Philippines, Russia, Singapore, Switzerland, UAE, USA, are some countries maintaining Offshore financial Centres legally indicating that it is a part of the game to attract investments of assets outside jurisdiction. Then what is the matter for ICIJ to investigate on the investors who are free to invest even small amounts mealy opening an account via email with identified or unidentified accounts. According to Wall Street Journal 60 US companies have $ 166 billion and 40% benefited from US Tax systems. USA is concessions and worried about money being pumping out of the country and have made strict guidelines for investments and even denouncing citizenship to be a citizen of a tax haven. USA Citizen to denounce citizenship to be a citizen of a Tax Haven have to forgo a major part of his wealth to the Government which discourages changing citizenship but proving this is a system legally accepted and practised in the united States. According to IMF sources $.9 Trillian in invested in Caribbean, $1 Trillian in Asia, $2.7 Trillion in London, USA and Japan,$ 2 Trillian in USA, Bahrain, Bahamas, Bermuda, Netherlander and Panama diluting the excitements of the issue as unusual and illegal. Though some cases have been initiated and pending we do not hear of any convictions so far.
