“Pandora Papers”: Officials in need of explanation

Hundreds of politicians and officials were probably doing business through shadow companies. Many of them could come under pressure in the wake of the Pandora Papers. The federal government also wants to act more consistently against tax havens.

Numerous politicians around the world could come under pressure because of their financial conduct after the publication of explosive documents under the name “Pandora Papers”. They are said to have done a considerable amount of clandestine business through mailbox companies. NDR, WDR and “Süddeutsche Zeitung” contributed to the research. Because of the revelations, the federal government has now called for greater international action against tax havens.

Government spokesman Steffen Seibert said that the “Pandora Papers” that have now become known are “a further incentive to do what this federal government has already set itself the goal of”. He referred to measures taken by the incumbent government such as the so-called tax haven defense law. He emphasized the importance of international cooperation in order to be able to dry up tax havens.

Hessen offers central evaluation

The Federal Ministry of Finance is also taking the revelation as an opportunity to continue to take action against tax havens. A spokeswoman referred to concrete progress in the plan to introduce an international minimum taxation for companies.

Such global taxation “would reduce the incentive for mailbox companies,” she said. The international negotiations on this are on the “very good path”. The revelations apparently showed few references to Germany. However, the government does not have its own insight into the documents. The government did not want to comment on the possible diplomatic consequences of the revelations.

Hesse’s finance minister Michael Boddenberg offered the central analysis of the “Pandora Papers”. “If we get the ‘Pandora Papers’, we will evaluate them with all professionalism and provide authorities worldwide with information. Should the documents contain any evidence of tax crimes, these would be followed up consistently.

Major donors from the Tories are said to be involved

The European Commission announced that it would step up its crackdown on tax evasion. The spokesman for Economic Commissioner Paolo Gentiloni, Daniel Ferrie, referred to a proposed law planned by the end of the year. Tax evasion and its avoidance are not only a matter for the EU, but “global issues that must be addressed worldwide,” he emphasized.

Great Britain and Australia also responded to the research. Both countries want to take a closer look at the reports. The British Treasury Secretary Rishi Sunak told Sky News that the tax authority would start investigations. In Great Britain, the news that a major donor from Prime Minister Boris Johnson’s Conservative Party was allegedly involved in a case of corruption over telecommunications rights in the ex-Soviet Republic of Uzbekistan caused a stir. Sunak and Johnson stressed that all donors would be carefully screened. The billionaire denied the allegations.

The Australian Tax Administration’s (ATO) deputy chief Will Day threatened investigations who attempted to defraud the system. “Your secrets are no longer safe and you can expect that your actions will have dire consequences,” he said. The new data from the “Pandora Papers” would be compared with the data that the ATO already had in order to identify possible connections. “We can untangle any money trail, no matter how complicated it is.” According to Australian media, more than 400 Australians appear in the documents.

Kremlin: “Unproven Claims”

The publications also mention people close to the Russian power apparatus. “To be honest, we did not see any hidden riches in Putin’s immediate vicinity,” said spokesman Dmitri Peskov. He called the Pandora Papers a collection of “unproven claims”.

At best, there is reason to question the role of the USA as the largest offshore lagoon and largest tax haven, he said, according to the Interfax agency. He sees no reason to initiate any reviews on the basis of the research.

Babis speaks of slander

The timing of the publications is explosive for the Czech Prime Minister Andrej Babis. Because a new parliament will be elected on Friday and Saturday. He described the revelations concerning him in the “Pandora Papers” on Twitter as a defamation attempt to influence the election. “I have never done anything illegal or wrong,” he wrote.

Babis is said to have acquired a manor house and three hectares of land in the southern French town of Mougins on the Cote d’Azur in 2009 via an opaque offshore construction. He is said to have used three mailbox companies for this. The “Pandora Papers” do not reveal where the money for the purchase of the luxury property comes from. Babis is under pressure anyway: the police are investigating him for allegedly fraudulently obtaining EU subsidies.

Jordan also rejects allegations

Jordan was among the first to comment on the Pandora Papers revelations. According to research, King Abduallah II is involved in numerous offshore financial transactions. “Some of the press reports published about the king’s real estate are inaccurate, skewed and exaggerated,” said the Amman royal family. The publication of addresses of royal property is also a security risk for the monarch and his family.

According to the Pandora Papers, King Abdullah II used at least 30 offshore companies in tax havens to buy 14 luxury properties in the US and UK. The real estate empire built in this way is said to be worth over $ 100 million. So far, however, the head of state has not been accused of any criminal misconduct.