Offshore tax shelters disclosed in leaked documents

Written By limadu on Kamis, 04 April 2013 | 05.32

NEW YORK (CNNMoney)

The International Consortium of Investigative Journalists says 86 journalists from 46 countries have used high-tech data crunching to wade through 2.5 million documents from the last 30 years. It said that the amount of data leaked is 160 times greater than the leak of U.S. State Department documents by Wikileaks in 2010.

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Those using the tax shelters include American doctors and dentists, middle-class Greek villagers, families and associates of long-time despots, and ultra-rich from around the globe. Also involved: Wall Street swindlers, Russian corporate executives and international arms dealers.

Tax shelters detailed in the report include the British Virgin Islands, the Cook Islands, Cyprus and Switzerland.

The report said the money being sheltered included proceeds of Ponzi schemes as well as money drained from national coffers, adding that studies estimate that cross-border flows of global proceeds of financial crimes total between $1 trillion and $1.6 trillion a year.

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The group said the use of tax shelters have implications for the world's economies, draining countries of the tax resources they need. It points out that the European sovereign debt crisis was exacerbated by average Greeks cheating on taxes with offshore accounts, and that the latest crisis revolved around the flow of Russian funds into the banking system of Cyprus, which has become a major tax shelter.

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First Published: April 4, 2013: 7:33 AM ET


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