Summary

  • The leak, dubbed the Paradise Papers, contains 13 million documents

  • Prince Charles' offshore financial interests revealed in latest wave of stories

  • Tax affairs of British island territories under the spotlight

  • US tech firm Apple has secret tax bolthole in Jersey, papers reveal

  • EU finance ministers call for a blacklist of tax havens

  • Trump's commerce secretary selling shares in firm with links to Russia

  1. India 'to look into Paradise Papers'published at 17:34 Greenwich Mean Time 7 November 2017

    Man waves an India flagImage source, AFP

    We've focused a lot on the Western celebrities and companies whose tax affairs were uncovered in the Paradise Papers leaks. But there were revelations in other countries too, including India.

    The documents shed light on the financial holdings of more than 700 Indian entities and individuals.

    India's Finance Minister Arun Jaitley said the government would consider each case on its "individual merit".

    "It will be found out... who are those people with totally illegal accounts and who have [a] plausible defence," the Press Trust of India reported Mr Jaitley as saying.

  2. The tax professionals' reponsibilitypublished at 17:20 Greenwich Mean Time 7 November 2017

    In the controversy over the Paradise Papers, questions have been raised about the role of professionals in the creation and facilitation of tax avoidance schemes.

    There are multiple measures in place already to prevent lawyers and accountants establishing and marketing such schemes.

    But are they making an impact?

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  3. Ministers push for tax blacklistpublished at 17:03 Greenwich Mean Time 7 November 2017

    EU flagsImage source, Getty Images

    European finance ministers have been talking about the fallout from the Paradise Papers at a meeting in Brussels.

    Many of them are now calling for a blacklist of tax havens to be drawn up for approval next month, to tackle what they see as tax dodging by the rich and famous.

    Underlining the difficulty of such an approach, however, there were questions about how to impose sanctions on countries that help tax avoidance, which is often legal.

    "There was strong support for the idea of moving forward quickly," said Estonia's finance minister Toomas Toniste, who holds the EU's rotating presidency.

    He added that "most countries" wanted the adoption of the list next month - although it's thought that not all of the EU's 28 countries are equally keen to go that fast.

  4. Would you avoid tax?published at 16:41 Greenwich Mean Time 7 November 2017

    Nearly half of Brits would take up an offer to cut their tax bill in a non-illegal way, according to YouGov pollsters.

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  5. Who is a tax dodger?published at 16:28 Greenwich Mean Time 7 November 2017

    Paradise Papers artwork

    The Paradise Papers documents have lifted the lid on the tax affairs of the rich and powerful. But many tax experts have been at pains to point out that not all the deals are illegal.

    Mark Davies, a chartered tax adviser who offers services in offshore finance, tells the BBC some of the cases involve "tax evasion" and others involve "tax avoidance".

    Tax evasion is dodging tax that is due, while tax avoidance involves "taking steps to avoid paying tax so that it isn’t due" - a move that isn't illegal, Mr Davies says.

    Some of what BBC Panorama uncovered seems to be illegal tax evasion and needs to be pursued by HMRC, he concludes.

  6. Ireland 'tax-compliant', says PMpublished at 16:11 Greenwich Mean Time 7 November 2017

    Irish Prime Minister Leo VaradkarImage source, Reuters

    Irish Prime Minister Leo Varadkar has said the country is an "international leader" in tackling tax avoidance.

    Earlier, opposition politicians called for Irish tax officials to come before lawmakers to discuss the fallout from the Paradise Papers. Ireland's corporation tax rate of 12.5% has helped attract major multinationals to set up bases in the country.

    Speaking in the Irish Parliament, Mr Varadkar said the OECD had identified Ireland as one of only 22 countries which were entirely tax compliant.

    He said Ireland had closed tax loopholes recently, but added: "It is constantly a game of cat and mouse."

  7. Stay tunedpublished at 15:57 Greenwich Mean Time 7 November 2017

    BBC Scotland will have more revelations from the Paradise Papers

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  8. EU calls for urgent action on tax havenspublished at 15:41 Greenwich Mean Time 7 November 2017

    Pierre Moscovici talks to UK Treasure Secretary Liz TrussImage source, EPA

    Pierre Moscovici, the European Commissioner for financial affairs and taxation, has called for immediate action over tax havens as European finance ministers meet in Brussels.

    The ministers have brought forward talks about drawing up a blacklist of tax havens following the release of the Paradise Papers.

    And Mr Moscovici (pictured left with UK Treasury Secretary Liz Truss) said: "It's high time that the political authorities act even more. We've done a lot in recent years but we need to do more.

    "It is high time that we have a blacklist of tax havens before the end of this year. It must be effective and credible and it must be sorted with sanctions if necessary."

  9. 'We're not a tax haven'published at 15:28 Greenwich Mean Time 7 November 2017

    Castletown, Isle of ManImage source, Getty Images

    Residents of the Isle of Man do not recognise the description of their home as a "tax haven" and want to see more evidence, says BBC North of England correspondent Judith Moritz, external.

    She told the News Channel that although there are nearly 1,000 private jets registered on the island - more than are registered in France, reportedly - the locals say that is because their "jet registry is a world leader".

  10. Isle of Man's financial hubpublished at 15:22 Greenwich Mean Time 7 November 2017

    Isle of Man financial and legal services

    This is the centre of the Isle of Man’s financial district. The island, with its population of less than 85,000, has more than 30,000 registered companies.

    Some 17% of the island’s income comes from banking, finance and business services and the same proportion comes from insurance.

    The Paradise Papers leak has shone a spotlight on the island - which stresses that it doesn't welcome those "seeking to evade or aggressively avoid taxes".

  11. Jersey requests Paradise Papers for reviewpublished at 15:07 Greenwich Mean Time 7 November 2017

    Ryan Morrison
    BBC News Online

    Jersey's chief minister has asked the International Consortium of Investigative Journalists for a copy of any Paradise Papers documents relating to Jersey.

    Ian Gorst says he wants financial investigators to find out if any laws have been broken.

    He says companies should only have tax residency if they have a "substantive presence", which includes employing staff.

    Ian GorstImage source, PA
    Quote Message

    If what we have heard in the media proves to be abusive or aggressive avoidance then we will take action. I have asked for a review by the regulator into this. Companies operating in Jersey should show substance."

    Seantor Ian Gorst, Jersey Chief Minister

  12. Isle of Man says tax laws 'transparent'published at 14:47 Greenwich Mean Time 7 November 2017

    The House of Keys

    The Isle of Man has said it does not welcome those "seeking to evade or aggressively avoid taxes", following the Paradise Papers revelations.

    Its tax practices have come under scrutiny after documents showed Formula One champion Lewis Hamilton avoided tax on his £16.5m luxury jet by importing it via the island in 2013.

    Chief Minister Howard Quayle said the Isle of Man was "open and transparent".

    The UK Treasury is now investigating the importation of jets to the island.

    You can read more of this story here.

  13. Paradise Papers revelations span the globepublished at 14:33 Greenwich Mean Time 7 November 2017

    Michael HutchenceImage source, Getty Images
    Image caption,

    What happened to Michael Hutchence's reputed millions remains a mystery

    The latest release of the Paradise Papers has shed light on the financial hideaways of iconic brands and figures around the world.

    In one case, the papers show a deal to cash in on Australian rock star and lead singer of INXS, Michael Hutchence, who killed himself in 1997.

    According to ABC, the singer's former lawyer, Colin Diamond, legally set up a company in Mauritius in 2015 with the aim of "commercial exploitation of the sound recordings, images, films and related materials embodying the performance of Michael Hutchence".

    Elsewhere, Turkish Prime Minister Binali Yildirim's family members, including his two sons, are alleged to have offshore investments in Malta, according to Turkish opposition newspaper Cumhuriyet.

    There have also been revelations in India, Bolivia, Pakistan and Japan, among others.

  14. Appleby 'sets aside payments'published at 14:19 Greenwich Mean Time 7 November 2017

    The law firm at the centre of the Paradise Papers leak has earmarked $500,000 to pay a fine to financial regulators in Bermuda, according to press reports on the island. The report says that Appleby and Bermuda regulators haven't yet commented.

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  15. 'Everyone wants to get the investment'published at 14:03 Greenwich Mean Time 7 November 2017

    Paradise Papers Apple tax avoidance

    The Paradise Papers show that in 2013, Apple avoided a crackdown on its controversial Irish tax practices by moving the firm holding most of its untaxed offshore cash to the Channel Island of Jersey.

    Rita de la Feria from the University of Leeds says the leaked documents show the lengths companies will go to in order to avoid paying billions in tax.

    "I think this is essentially like written evidence of something that we all kind of know is happening, with essentially a wide tax competition amongst various jurisdictions around the world for investment," she told the BBC.

    "Everyone wants to get the investment so basically the multinationals take advantage of that fact and essentially make countries compete for that investment through tax."

  16. Hear Guernsey minister on Wake Up To Moneypublished at 13:51 Greenwich Mean Time 7 November 2017

    Wake Up To Money podcast page

    Guernsey chief minister Gavin St Pier spoke out on the Paradise Papers on Tuesday's Wake Up To Money.

    You can hear him on the podcast here.

  17. Oxfam proposes five steps 'to end tax scandals'published at 13:39 Greenwich Mean Time 7 November 2017

    House of CommonsImage source, PA

    Charity Oxfam is now urging the UK government to:

    • Use the forthcoming Budget to commit to introduce public country-by-country reporting for all multinational companies operating in the UK
    • Ensure the UK’s overseas territories and crown dependencies introduce public registers of company beneficial ownership
    • Give developing countries access to tax and company data
    • Ensure that UK corporate tax rules do not incentivise companies to avoid tax in developing countries
    • Show international leadership on tackling tax avoidance
  18. Jersey 'doesn't want abusive tax avoidance' says chief ministerpublished at 13:22 Greenwich Mean Time 7 November 2017

    Ryan Morrison
    BBC News Online

    Companies should have a substance in Jersey if they want to claim tax residence says Jersey's chief minister.

    Senator Ian Gorst was responding to a Panorama report that claims Apple became tax resident in Jersey after changes to Irish law required them to have a tax residency somewhere.

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  19. Apple used Jersey 'to preserve tax due to US government'published at 13:10 Greenwich Mean Time 7 November 2017

    Ryan Morrison
    BBC News Online

    Apple says it placed money in Jersey to preserve tax revenue it owed to the US government.

    In a statement on its website, external, the world's largest company rejected some of the claims in the Paradise Papers by the International Consortium of Investigative Journalists.

    AppleImage source, PA

    After the EU announced in 2013 that it was investigating Apple's Irish arrangement, the Irish government decided that firms incorporated there could no longer be stateless for tax purposes.

    In order to keep its tax rates low, Apple needed to find an offshore financial centre that would serve as the tax residency for its Irish subsidiaries.

    In a statement Apple said: “Apple’s subsidiary, which holds overseas cash, became resident in the UK Crown Dependency of Jersey, specifically to ensure that tax obligations and payments to the US were not reduced.

    "Since then Apple has paid billions of dollars in US tax on the investment income of this subsidiary.

    "There was no tax benefit for Apple from this change and, importantly, this did not reduce Apple’s tax payments or tax liability in any country."

  20. More revelations on shell companies to comepublished at 12:56 Greenwich Mean Time 7 November 2017

    On Thursday, Transparency International UK will publish new research on British companies that perform legal services similar to Appleby and Mossack Fonseca.

    The NGO is calling on the UK Government to:

    • Publish the Anti-Corruption Strategy that was promised in 2016
    • Ensure the Overseas Territories and Crown Dependencies come into line with international good practice
    • Implement the long-delayed register of the owners of overseas companies purchasing UK property
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