[HN Gopher] Pandora papers: biggest leak of offshore data expose...
       ___________________________________________________________________
        
       Pandora papers: biggest leak of offshore data exposes financial
       secrets of rich
        
       Author : pseudolus
       Score  : 762 points
       Date   : 2021-10-03 16:35 UTC (6 hours ago)
        
 (HTM) web link (www.theguardian.com)
 (TXT) w3m dump (www.theguardian.com)
        
       | bloqs wrote:
       | Possibly brave opinion. Being rich and obeying the law is not
       | morally wrong. Deliberately absconding from your responsibilities
       | is.
       | 
       | People do not deserve to be doxxed for simply being rich. All of
       | the high school socialists need to focus more on honesty and
       | consistency if you wish to criticise others for it. If the system
       | needs more transparency then that is what you need to put your
       | energy into, not vigilante justice.
       | 
       | If you really believe privacy is a universal right then dox
       | people that have more money than you, you are as broken as thing
       | you purportedly attack.
        
         | klyrs wrote:
         | "High school socialists" is unnecessary sneering at the
         | community. I suspect you could express these opinions without
         | such flamebait.
        
       | craigr1972 wrote:
       | I want to know who exactly did this, on whose instructions, and
       | why right now.
        
       | [deleted]
        
       | loufe wrote:
       | @dang could this and the other trending story from ICIJ be
       | merged?
        
       | throwawayay02 wrote:
       | The world needs more wikileaks and less ICIJs.
        
         | wolverine876 wrote:
         | Why? ICIJ did the work here.
        
       | m00dy wrote:
       | I would like to download these files if possible.
        
       | EGreg wrote:
       | Can someone summarize the main strategies we should be aware of?
       | Which ones can help the plebes?
        
         | fallingknife wrote:
         | None, of course. If any of these loopholes could be used by a
         | significant fraction of the population, they would quickly be
         | closed.
        
           | esarbe wrote:
           | And isn't that exactly thing that makes this 'unfair'? If
           | this was a way that everyone could use to lower their taxes,
           | I would have no issue with such practices.
           | 
           | But - as you rightly point out - if that was the case, these
           | loopholes would be closed first thing in the morning. These
           | are loopholes created by the extensive lobbying of an
           | exclusive club of people that do not want this to be
           | available for the common plebs, but exclusive to the rich
           | boys (and gals) club.
        
           | loufe wrote:
           | Couldn't it just be a matter of scale? In order for the tax
           | savings to outweigh the expensive consultant and account
           | fees, you'd likely have to have a large sum of money to hide.
        
             | ashtonkem wrote:
             | Yes, that is usually the barrier to entry. My go to example
             | is how the Bezos of the world fund their lifestyles by
             | taking out low interest loans backed by their stocks. The
             | loans are rolled forward continually and only paid off once
             | they die. This avoids capital gains, which is higher than
             | the loan interest. This technique is legal for anyone, but
             | good luck convincing Goldman Sachs to loan you money based
             | on 0.001% of Facebook's outstanding shares.
             | 
             | GP's argument, I believe, is that if these techniques were
             | usable by you and I they'd close the loop holes quickly.
             | The reason why they're not usable by the plebs is
             | immaterial to the basic point. Tax code is very much a
             | "rules for thee and not for me" area of the law.
        
               | fallingknife wrote:
               | This is correct, but just wanted to point out that 0.001%
               | of FB is worth about $10 million, so you could definitely
               | get a loan on that.
        
               | ashtonkem wrote:
               | Ah, I knew I'd regret just making up a percentage that
               | felt small enough. Oh well
        
               | gunshai wrote:
               | What is interesting is you can do this really easily in
               | the crypto environment. There are plenty of services that
               | are offering the ability to borrow against your gains to
               | avoid capital gains.
        
               | e1g wrote:
               | You're directionally correct, but the threshold is lower.
               | In the US, banks will give you a low-interest loan for up
               | to 50% of your holdings with them (public equities,
               | etc.), starting at $300k. Having $600k+ in liquid
               | investments is unquestionably above middle class, but
               | this strategy is well within reach for many tech people.
        
               | gruez wrote:
               | Depending on what you mean by "low-interest". At IBKR you
               | only need $100k to get 1.06% interest rate.
               | https://www.interactivebrokers.com/en/index.php?f=46376
        
               | GDC7 wrote:
               | But that's for margin. Meaning you use the funds to
               | trade.
               | 
               | It's different than taking a loan against 300k USD in FB
               | shares, because that you can use for everything...ranging
               | from buying a Ferrari to starting a new business.
               | 
               | Interest rates will naturally be higher.
        
               | gruez wrote:
               | > But that's for margin. Meaning you use the funds to
               | trade.
               | 
               | nope, you can withdraw it.
               | https://www.mrmoneymustache.com/2021/01/29/margin-loan-
               | ibkr-...
               | 
               | Also, there's nothing functionally different between:
               | 
               | 1. having 500k in stocks and borrowing $250k from it
               | 
               | 2. having 500k in stocks, selling half of that to get
               | $250k, withdrawing $250k, then rebuying $250k worth of
               | the stocks using margin
        
               | GDC7 wrote:
               | > nope, you can withdraw it.
               | https://www.mrmoneymustache.com/2021/01/29/margin-loan-
               | ibkr-...
               | 
               | Is that intentional from IKBR? I guess if they knew
               | they'd raise their interest rate. If people start using
               | this method more and more then it will disappear. Seen
               | this pattern over and over again in many fields.
               | 
               | > having 500k in stocks, selling half of that to get
               | $250k, withdrawing $250k, then rebuying $250k worth of
               | the stocks using margin
               | 
               | Risking money in the financial markets vs. risking them
               | (or again using them) in the real markets are 2 very
               | different things.
               | 
               | There is no equivalent for the SP500 in real life, also
               | real life is very illiquid compared to financial markets.
               | 
               | Plus unless you are very wealthy financial institutions
               | tend to look down on people who want to spend money or
               | have the arrogance to think they can start a business,
               | they always punish such behaviors with higher interest
               | rates.
               | 
               | Also once the money is out of the trading platform and
               | into your checking account you could buy real bitcoin on
               | Coinbase, withdraw to private wallet, flee to South
               | America and never be heard from ever again
        
               | gruez wrote:
               | >Is that intentional from IKBR? I guess if they knew
               | they'd raise their interest rate. If people start using
               | this method more and more then it will disappear. Seen
               | this pattern over and over again in many fields.
               | 
               | if you search around this method has been around for a
               | while, so it's not some sort of glitch. Plus like I said
               | earlier, it's not any different than using the money to
               | buy stocks.
               | 
               | >Also once the money is out of the trading platform and
               | into your checking account you could buy real bitcoin on
               | Coinbase, withdraw to private wallet, flee to South
               | America and never be heard from ever again
               | 
               | I don't think you understand how this works. They still
               | have your stocks. If you flee to south america they don't
               | really care. Should you fail to meet your maintenance
               | margin your stocks will be liquidated to pay back the
               | loan.
               | 
               | >Plus unless you are very wealthy financial institutions
               | tend to look down on people who want to spend money or
               | have the arrogance to think they can start a business,
               | they always punish such behaviors with higher interest
               | rates.
               | 
               | I think you're ascribing ill will where there isn't any.
               | Banks charge high interest to business and/or personal
               | loans not because they hate poor people or whatever, but
               | because they're risky.
        
               | GDC7 wrote:
               | > I think you're ascribing ill will where there isn't
               | any. Banks charge high interest to business and/or
               | personal loans not because they hate poor people or
               | whatever, but because they're risky.
               | 
               | I don't mean to accuse bankers, if anything I meant to
               | stress that this method has something which doesn't add
               | up .
               | 
               | Think about it , even if your net worth is 1M you still
               | have to go through a conversation with the bank before
               | they loan you money. They want to know your intentions,
               | what are you going to do with it and so forth. They size
               | you up, and the 1M net worth doesn't even count as a tool
               | to reduce the burden of questions.
               | 
               | This method instead : you post some securities and you
               | get a loan with no questions asked. It seems too good to
               | be true or intentional from the financial institution
               | side as it completely sidesteps the due diligence
               | process.
        
               | gruez wrote:
               | >This method instead : you post some securities and you
               | get a loan with no questions asked. It seems too good to
               | be true or intentional from the financial institution
               | side as it completely sidesteps the due diligence
               | process.
               | 
               | It's not any different than going to a pawn shop and
               | getting a loan, no questions asked. They don't ask any
               | questions (aside from any mandatory AML/KYC ones) because
               | they don't need to. The combination of easy to
               | sell/liquid stock and the margin requirement makes it
               | very unlikely that they'll lose their money. If you have
               | $100k worth of stocks, SEC/FINRA regulations means that
               | you can borrow up to $50k, and your portfolio can drop
               | another $25k before they start liquidating your holdings.
               | At that point you still have $75k worth of collateral for
               | $50k worth of loans, so the chances of them losing money
               | is slim.
        
               | vmception wrote:
               | Anyone can get a loan against securities. That isnt
               | special.
               | 
               | Collateralized lending is very common such that its not
               | newsworthy.
        
               | gruez wrote:
               | >The loans are rolled forward continually and only paid
               | off once they die. This avoids capital gains, which is
               | higher than the loan interest.
               | 
               | 1. Does this actually work? AFAIK you avoid capital
               | gains, but at the same time you need to pay estate taxes.
               | 
               | 2. According to wikipedia bezos is 57 years old. Using
               | the figures from SSA[1], he still has 26 years to live.
               | The 20 year treasury rate (ie. risk free rate) is 1.99%
               | (annualized). Applying that rate over 26 years gets you
               | 66.9%. That doesn't seem like much of a savings over the
               | long term capital gains rate of 20%. The numbers make
               | more sense if you use 3 or 5 year treasuries, but that
               | also exposes you to interest rate risk in the future.
               | 
               | [1] https://www.ssa.gov/oact/STATS/table4c6.html
               | 
               | >This technique is legal for anyone, but good luck
               | convincing Goldman Sachs to loan you money based on
               | 0.001% of Facebook's outstanding shares.
               | 
               | They'll happily loan you money based on the equity in
               | your home though.
               | https://en.wikipedia.org/wiki/Reverse_mortgage
        
               | ashtonkem wrote:
               | Yes, it works. The tldr is that the cash you avoid paying
               | capital gains on remains invested and growing.
               | 
               | https://www.bloomberg.com/news/newsletters/2021-07-26/mon
               | ey-...
        
               | gruez wrote:
               | That's talking about something totally different. The
               | parent poster is talking about the tax implications (the
               | gains aren't taxed), whereas you and the article you
               | linked is talking about the potential upside because
               | you're effectively borrowing money to invest.
        
               | ashtonkem wrote:
               | I'm the GP... I guarantee you I was talking about the
               | same thing both times.
        
               | gruez wrote:
               | whoops, my bad. For some reason I thought you were
               | talking about "capital gains [taxes]".
        
               | tejohnso wrote:
               | Wouldn't the estate have to sell shares to cover the loan
               | upon death? Or transfer shares directly, but pay the
               | capital gains as though it were a sell + transfer
               | transaction?
        
       | [deleted]
        
       | manquer wrote:
       | A lot of negative comments that this is yet another leak and
       | nothing is going to change.
       | 
       | I see a lot of positives,
       | 
       | Panama and paradise leaks were from one firm, this is from 14
       | different ones and by far the largest one in terms of number of
       | documents, that's progress.
       | 
       | More transparency is always good , as an immediate impact asset
       | owners like the British crown are now going to be lot more
       | careful who they are buying from, the optics of enabling
       | laundring is quite important for such buyers.
       | 
       | Removing such buyers from the market for dictators will limit who
       | they can deal with making it more difficult and likely less
       | lucrative for them in dealing with property
        
       | nofrills wrote:
       | Rothschild, Rockefeller, Warburg, Zuck, Musk, Bezos on the list?
       | Oops, no? Then you know its entertainment.
        
       | harikb wrote:
       | I read 3/4th of the article and the title entirely as "Panama
       | Papers" and wondered why the 2013 news is still being discussed
       | until I realized....
        
         | BrandoElFollito wrote:
         | Well, I read Panama Papers until your comment...
         | 
         | I just read the comments, though, and somehow nothing seemed
         | strange, I just thought some more information emerged after a
         | few years.
        
       | TechBro8615 wrote:
       | The website is unreadable on mobile.
        
         | klyrs wrote:
         | Reader mode fixed that for me
        
       | EarlKing wrote:
       | Link currently returning 502 Bad Gateway. Probably should've
       | wrapped this in an archive.is link.
        
         | Melting_Harps wrote:
         | Done: https://t.co/JxKKwYqrtt?amp=1
        
           | justinclift wrote:
           | Nope, that just directs to the original article rather than a
           | snapshot saved for posterity.
        
       | au8er wrote:
       | I guess just like the Panama papers, leading journalists will be
       | killed, investigations stop being reported in mainstream media,
       | and the world goes quiet again with nothing changing.
        
         | 627467 wrote:
         | "leading journalist will be killed"? Who? Panama papers did the
         | round for weeks/months in the media around the world.
        
           | j-pb wrote:
           | > who?
           | 
           | https://en.m.wikipedia.org/wiki/Daphne_Caruana_Galizia
        
         | alexgmcm wrote:
         | And the Paradise Papers as well.. but who knows - third time
         | lucky?
        
           | edoceo wrote:
           | Paradise Papers? I missed those, 2017 I guess.
           | 
           | https://www.icij.org/investigations/paradise-papers/
        
         | [deleted]
        
         | [deleted]
        
         | dvdkon wrote:
         | Well hopefully it'll show a few more people that our current PM
         | Babis isn't the anti-corruption people-lover he paints himself
         | to be. Election's next week, so no time for investigations to
         | fade away.
        
         | 74d-fe6-2c6 wrote:
         | Journalists got killed over reporting about and investigating
         | the Panama Papers?
         | 
         | I guess you are referring to Daphne Caruana Galizia. That would
         | still be singular, though.
        
         | sofixa wrote:
         | There were politicians in Iceland, Spain, Ukraine who resigned.
         | There were multiple criminal investigations, and convictions.
         | 
         | There were no earth shattering mass arrests and government
         | topplings, but it's unrealistic to expect such a thing.
        
           | kzrdude wrote:
           | And the current US president has mentioned international tax
           | treaties as an issue he wants progress on.
        
             | nuclearnice3 wrote:
             | And PM of Pakistan Nawaz Sharif was disqualified from
             | office. https://en.wikipedia.org/wiki/Panama_Papers_case
        
         | Hokusai wrote:
         | Things happened: https://www.icij.org/investigations/panama-
         | papers/five-years...
         | 
         | E.g. In Denmark, the country's tax minister cited the Panama
         | Papers to justify hiring hundreds of new employees to bolster
         | the fight against tax fraud.
         | 
         | It was high news and had consequences. There is much work to be
         | done, but 'nothing changing' is not the case.
        
       | hermitcrab wrote:
       | I don't understand the greed of these people. Once you have
       | health care, education, a nice house, a nice car and you can
       | afford to go on holiday, what else do you need?
       | 
       | What is the point of having 10 super cars or a 100 room mansion?
       | Showing off to other shallow people?
        
         | amelius wrote:
         | Building a huge render farm would come to my mind, but I'm not
         | a billionaire.
        
         | archsurface wrote:
         | Aspiring to be monarchy, which condones "sacred people" above
         | all others.
        
       | loufe wrote:
       | So long as wages for top politicians remain not top CEO-level
       | (IMO causing corruption to make up for difficulty and investment
       | made in getting into power) and countries compete in a race to
       | the bottom for taxes and secrecy (which allows for such a system
       | to exist) I really don't see the end of the offshore phenomenon.
       | We really need to push our leaders to action on this issue. The
       | global minimum tax initiative and corruption drives are a start.
       | In my fantasy all-powerful yet noble leader of a country I'd go
       | so far as embargos on nations and sanctions on wealthy
       | individuals to discourage this tax cheating, alas. Shame on tax
       | cheaters, you're stealing from your neighbours.
        
         | TomSwirly wrote:
         | Has it occured to you that trying to find leaders on the basis
         | of greed might be a reason that things aren't going so well?
         | 
         | Maybe we should be paying politicians less and having a cap on
         | their net wealth instead.
         | 
         | And before you say anything - there are plenty of very very
         | competent people who would do the job, just not the rich.
        
         | pessimizer wrote:
         | > So long as wages for top politicians remain not top CEO-level
         | 
         | Remember, of course, that there are two ways to fix this.
        
           | loufe wrote:
           | I see what you mean. I wonder if while cutting CEO pay if
           | we're cutting into meritocracy as a path to financial success
           | and just further enlarging the slice of the pie for existing
           | holders of capital. Right? I understand that wages are
           | obscene but at least they're wages paid to people actively
           | working. Holders of capital have a job to play as well as
           | they seek the best place to invest it, but I feel like
           | capitalism isn't stretching well to the 21st century canvas.
        
             | mplewis wrote:
             | What?
        
         | namdnay wrote:
         | Having a CEO-level salary didn't stop Ghosn from cheating
        
       | baybal2 wrote:
       | Somebody very big keeps going, hacking those offshore law firms
       | for years in a row.
       | 
       | This cannot be just leaks keeping consistently popping up like
       | that.
       | 
       | I am trying to guess whose doing it may be?
        
       | LudwigNagasena wrote:
       | Third time's a charm? Or nothing is going to happen again?
        
       | marcodiego wrote:
       | ELI5 please
        
         | mplewis wrote:
         | Here's a link to an article which is a tidy summary of what the
         | Pandora Papers are:
         | 
         | https://www.theguardian.com/news/2021/oct/03/pandora-papers-...
        
       | Vinnl wrote:
       | Anyone know what kind of source has such documents from 14
       | different companies spread across jurisdictions?
        
       | xyzelement wrote:
       | On superficial reading, this story conflates tax minimization
       | with cases of corruption.
       | 
       | Corruption means a politician becoming wealthy in an
       | inappropriate way from their position of power. Even if they were
       | to pay taxes this is still a huge negative for society. Wherhers
       | it's the president of Azerbaijan or Nancy Pelosi, it's should
       | rise to the level of criminal enrichment if properly
       | investigated.
       | 
       | On the flip side are people who made their money legitimately and
       | employ legal strategies available to them to minimize their tax
       | bill. I have a hard time moralizing this because we all do it. Be
       | it writing off donations, using tax loss harvesting, holding on
       | to investments just long enough to not trigger capital gains
       | taxes, etc - we all use strategies available to us to pay no more
       | tax that we have to. I would expect nothing else from a more
       | wealthy person. I would be totally fine if society made moves to
       | close loopholes but I can't blame people for leveraging loopholes
       | that exist because we should all do that.
        
         | esarbe wrote:
         | > I would be totally fine if society made moves to close
         | loopholes but I can't blame people for leveraging loopholes
         | that exist because we should all do that.
         | 
         | You can still blame for bribing politicians to create these
         | loopholes in the first place.
        
         | crispyambulance wrote:
         | > I would be totally fine if society made moves to close
         | loopholes but I can't blame people for leveraging loopholes..
         | 
         | The first step in the right direction, then, is for people to
         | become aware of these highly unsavory (but legal) practices.
         | It's not going to be an easy fight. The kind of people that
         | setup multiple shell companies to obfuscate the ownership of
         | their assets have worked deliberately to extract wealth and
         | game the system to a level that is unimaginable (at least for
         | me before I heard about the related Panama Papers story that
         | broke a couple years ago).
         | 
         | Ultimately, as we approach a global society with insane levels
         | of wealth inequality and where public infrastructure and social
         | safety nets have started to come apart at the seams, it's
         | imperative that these "loopholes" get closed. Otherwise, we're
         | going to be revisiting Feudalism in 21st century western
         | democracies. Sadly some people seem to want that. They see it
         | as a kind of gilded age lords and their servants.
        
           | esarbe wrote:
           | > They see it as a kind of gilded age lords and their
           | servants.
           | 
           | The vexing thing is that everyone thinks that they are going
           | to end up on the "lord" side of this duality. I think this is
           | the biggest lie of the 20th and 21th century; that this game
           | is in any way, shape or form a fair one. The game is rigged
           | and while everyone seems to recognize this on some level,
           | almost everyone is trying to keep it rigged in the delusion
           | that they be the masters one day.
           | 
           | The fools.
        
             | whakim wrote:
             | Meritocracy is a giant myth (often completely unconnected
             | to the underlying data), but it's important to recognize
             | that it's just the latest in a long line of myths that have
             | been told to justify inequality. For centuries, the wealth
             | of the nobility and the clergy vis-a-vis the third estate
             | was justified by appealing to the harmony of a tripartite
             | society. In the ownership societies of the 19th century,
             | inequality was often justified by pointing to the various
             | rules and laws that governed and sacralized property rights
             | (which were theoretically available to anyone) upon which
             | stability and good governance depended.
        
         | archsurface wrote:
         | Some of those wealthy people are so-called "royals" - paid by
         | tax-payers.
        
         | vmception wrote:
         | These stories always do that as it fulfills a fetish.
         | 
         | But in any case, would your opinion change if the tax resident
         | or provider wrote the tax law that got passed? In Mossack
         | Fonsaco's case that is what they did in a variety of island
         | nations.
        
           | xyzelement wrote:
           | I am not very familiar with this but on the surface what you
           | describes sounds like corruption to me so yes very much
           | against that.
        
         | whakim wrote:
         | While I see what you're saying, I don't think that I completely
         | agree with you because the wealthy using these techniques (
         | _especially_ if they are politicians, but even if not) are
         | undermining public confidence in the tax regime. If Nancy
         | Pelosi or the President of Azerbaijan are conducting their own
         | affairs in one way while advocating for something else, why
         | should I believe their supposed commitments to a socially
         | equitable taxation regime or desire to make the world a better
         | place?
        
         | rcMgD2BwE72F wrote:
         | >On superficial reading, this story conflates tax minimization
         | with cases of corruption.
         | 
         | Yes but many of the tax loopholes are just the result of the
         | corruption of power (legal or not). It's only obvious to the
         | people who benefit from it, so no one bats an eye.
        
         | Zigurd wrote:
         | As others on this thread have pointed out, tax laws generally
         | outlaw sham loans, licensing arrangements, etc. When that kind
         | of cleverness works, it usually needs a boost from corruption
         | since the tax laws already exclude it.
        
       | I_am_tiberius wrote:
       | I don't understand why they release names of people who they also
       | say did not do anything wrong.
        
       | jedberg wrote:
       | The thing with all of these is that the rich people are probably
       | just as surprised as you are to show up in these leaks in most
       | cases.
       | 
       | When you get barely rich, like single digit millions, the banks
       | will start to offer you "family office" services. They basically
       | just take care of everything for you. You send them all your
       | money and all your debts (even your phone bills and stuff), and
       | they promise to make sure there is more at the end of the year
       | than the start. They invest for you, they do accounting and file
       | taxes for you. You give them limited power of attorney so you
       | don't even see the tax forms.
       | 
       | If you ask how it all works, they tell you it's really
       | complicated and you should just focus on doing whatever it is
       | that made you rich and let them worry about managing the money
       | for you. Sometimes they do ethical stuff, sometimes not,
       | depending on which bank and which consultant you hire.
       | 
       | I'm not excusing the people who are here, just explaining how
       | some people who you thought were good people end up in these
       | leaks.
        
         | jplr8922 wrote:
         | I like the way you view it. A lot of non-rich people do not
         | feel responsible at all for their wealth management. Some get
         | lucky, and are very happy using their extra money to pay people
         | to keep not thinking about this.
        
         | cblconfederate wrote:
         | I doubt there are such people, they know at least nominally.
         | The thing is, it is not illegal, so unless you re an active
         | politician it doesnt register as something materially unethical
        
       | LeoPanthera wrote:
       | Alternative coverage.
       | 
       | https://www.bbc.com/news/world-58780465
       | 
       | https://www.theguardian.com/news/2021/oct/03/pandora-papers-...
       | 
       | https://www.washingtonpost.com/business/2021/10/03/takeaways...
        
         | 1vuio0pswjnm7 wrote:
         | This touches on something that HN readers should be quite
         | familiar with. The immediate issue here in every case is not
         | legality, ethics, morality, etc., it is _privacy_.
         | 
         | As we can see demonstrated by this story, some folks do have
         | things they want to hide. Tech employees supporting efforts to
         | violate people's privacy at mass scale, collecting data about
         | people to feed advertising-dependent business plans, and
         | creating conditions for data breaches that leak personal
         | information, please take note.
        
           | miohtama wrote:
           | It is always about balancing public, the interest of many,
           | over private, the interest of one. When transaction size goes
           | to millions and publicly funded politicians get involved, the
           | public interest becomes more dominant. Especially if you have
           | crooked deals like a friend of Putin buying a movie theater
           | price under the market value, funded by a government loan.
        
         | verisimi wrote:
         | I'm cynical, but I think if the bbc, guardian and wapo are
         | reporting on this, this is a controlled release.
        
       | say_it_as_it_is wrote:
       | The only people who will be punished by this leak are journalists
       | and anyone remotely close to making a fuss about the corruption
        
       | jrexilius wrote:
       | Hmm.. the article reads more like biased, sensationalism than
       | unearthing some grand cosnpiracy. If there are some actual crimes
       | mixed up in this they undercut the importance of those with
       | foaming-at-the-mouth hype bits like "billionaire owns a $22mil
       | home in france".. Are they saying it was purchased with tax payer
       | money? or bribes? That is just one exmaple of the overwrought
       | nature of the piece. I think they do justice a disservice by
       | trying to imply (without explicitly calling _or_ substantiating)
       | wrong-doing everywhere there may be wealth. Focus on the actual
       | crimes..
        
         | cblconfederate wrote:
         | Yup, nothing to see here, taxes are for losers
        
         | joshuahaglund wrote:
         | It's really long but did you read even half of it? Because:
         | 
         |  _Czech Prime Minister Andrej Babis, one of his country's
         | richest men, rose to power promising to crack down on tax
         | evasion and corruption. In 2011, as he became more involved in
         | politics, Babis told voters that he wanted to create a country
         | "where entrepreneurs will do business and will be happy to pay
         | taxes."_
         | 
         |  _The leaked records show that, in 2009, Babis injected $22
         | million into a string of shell companies to buy a sprawling
         | property, known as Chateau Bigaud, in a hilltop village in
         | Mougins, France, near Cannes._
         | 
         |  _Babis has not disclosed the shell companies and the chateau
         | in the asset declarations he's required to file as a public
         | official, according to documents obtained by ICIJ's Czech
         | partner, Investigace.cz. In 2018, a real estate conglomerate
         | indirectly owned by Babis quietly bought the Monaco company
         | that owned the chateau._
         | 
         | Sounds like at the very lest it was unreported. We have half
         | the story, which in a lot of cases sounds like fraud. The other
         | half of the story is in tax documents.
         | 
         | ETA: The other thing is a lot of these people have the power to
         | fix these systems that enable corruption, and like Babis,
         | publicly say they will. But are they going to fix the system if
         | they're using it?
        
           | A4ET8a8uTh0 wrote:
           | It is interesting since recent OFAC enforcement was against
           | crypto exchange in Czech republic and I did have some other
           | indications of CZ becoming an interesting nexus for otherwise
           | unsavory or questionable activities ( from US perspective
           | anyway ).
        
         | doublerebel wrote:
         | The Guardian article does read like sensationalism and is
         | suspiciously devoid of actual crimes. On the other hand, this
         | full report direct from the ICIJ is much more damning and
         | relates each leader's tax evasion directly with the poor
         | conditions faced by their citizens.
         | 
         | > "If the Jordanian monarch were to display his wealth more
         | publicly, it wouldn't only antagonize his people, it would piss
         | off Western donors who have given him money,"
         | 
         | ...
         | 
         | > Marwan Kheireddine, Lebanon's former minister of state and
         | the chairman of Al Mawarid Bank, also appears in the secret
         | files. In 2019, he scolded former parliamentary colleagues for
         | inaction amid a dire economic crisis. Half the population was
         | living in poverty, struggling to find food as grocers and
         | bakeries closed.
         | 
         | > "There is tax evasion and the government needs to address
         | that," Kheireddine said.
         | 
         | > That same year, the Pandora Papers reveal, Kheireddine signed
         | documents as owner of a BVI company that owns a $2 million
         | yacht.
         | 
         | > Al Mawarid Bank was one of many in the country that
         | restricted customers' U.S. dollar withdrawals to stem economic
         | panic.
         | 
         | > Wafaa Abou Hamdan, a 57-year-old widow, is among the regular
         | Lebanese who remain angry at their country's elites. Because of
         | runaway inflation, her life savings plummeted from the
         | equivalent of $60,000 to less than $5,000, she told Daraj, an
         | ICIJ media partner.
        
         | Wronnay wrote:
         | Normally they don't pay taxes on offshore havens - so what they
         | are trying to say is that these leaders and billionaires don't
         | pay taxes like us normal ppl.
        
           | splix wrote:
           | Before transferring the money to an offshore you earn them,
           | which includes paying all of the taxes, like normal ppl.
           | 
           | When you get money from the offshore (as dividends or
           | whatever) you pay taxes on that income, like normal ppl.
           | 
           | What happens with the money between these moments is
           | different story though. Depends on how the money are spent.
           | And to my understanding, if they used to buy a property, say
           | in US, the offshore still pays the US property taxes.
        
             | inovica wrote:
             | In some respects, true, but that isn't always the case.
             | 
             | Say you own a company in the UK which sells widgets, but
             | you also own an offshore company that also sells widgets.
             | If you are dealing with a Chinese company, you could use
             | the offshore company to do the deal, paying little to no
             | tax. The money then resides in the offshore company and has
             | never gone through the UK - either as a business or
             | personal. As an individual you could own a credit card that
             | you use to spend in the UK, which goes back to the offshore
             | company. In additional, the offshore company could buy
             | property in the UK and no tax is paid. There are various
             | other tricks and nuances that can be employed to help
             | minimise tax paid - completely legally.
        
               | splix wrote:
               | I bet it isn't always the case too, right? I actually
               | wanted to say that the fact of owning a foreign corp
               | doesn't mean anything. It may be used to avoid some
               | taxes, or may not.
               | 
               | I can even give opposite examples, like when someone
               | comes to the US to run a startup in California. For the
               | country of their origin they definitely opened an
               | offshore corp (in the US in this case) and don't pay
               | taxes on it (they still pay to the US gov though). It's
               | just more convenient to have a US corp rather that a corp
               | in their home country, and not because of taxes which may
               | be higher in the US.
        
         | Melting_Harps wrote:
         | > Focus on the actual crimes.
         | 
         | The broader question and sentiment of this piece is: how
         | exactly have people who supposedly work in Public Service
         | amassed such wealth when these positions are paid so low, and
         | what lengths will they go to do so, especially in developing
         | countries. The subtext being if their are conflicts of interest
         | in their investments which happen to also be tied to offshore
         | havens.
         | 
         | This _outrage_ is warranted, because it underscores how tiered
         | the legal system is World wide (The US is least represented in
         | the Pandora release but 2 Federal Reserve Presidents have just
         | stepped down due to insider trading [0]) for those closest to
         | power, whereas tax evasion is one of the most effective ways to
         | get a criminal indictment for the average citizen in most of
         | the World.
         | 
         | 0: https://wgno.com/news/business/dallas-feds-kaplan-to-
         | leave-i...
        
           | jrexilius wrote:
           | Agree with some of that. It is a concern when an elected
           | official, with no other source of income, becomes wealthy in
           | office. But their leading bullet point isn't about that. It's
           | a billionaire, who _then_ ran for office. It's very clearly
           | trying to equate wealth with wrong-doing by association and
           | implication, without any specific claims or substantiation.
           | And it undercuts the story where it is cases of bribes,
           | theft, and corruption.
        
             | jyounker wrote:
             | And said billionaire, who ran on a anti-corruption
             | platform, concealed assets that are were required by law to
             | be disclosed. That's a crime.
        
             | aww_dang wrote:
             | For many ideologues, wealth is evidence of crime.
        
           | baybal2 wrote:
           | > This outrage is warranted, because it underscores how
           | tiered the legal system is World wide (The US is least
           | represented in the Pandora release but 2 Federal Reserve
           | Presidents have just stepped down due to insider trading [0])
           | for those closest to power, whereas tax evasion is one of the
           | most effective ways to get a criminal indictment for the
           | average citizen in most of the World.
           | 
           | For those closest to the power, the easiest way to get around
           | the law... is to follow it to the letter.
           | 
           | Biggest, and most famous Russian mafiosos live in the open in
           | London, while diligently paying taxes on their multi-billion
           | ill gotten wealth, and without using any offshore structures,
           | or shady law firms at all.
           | 
           | And the British establishment, Downing St., is very happy
           | with this arrangement.
           | 
           | What people forget about these things is that those offshores
           | are a refuge for at most second grade rogue economic players,
           | whose main rationale hiding their wealth is to hide it from
           | other much bigger gangsters, and mafias from their home
           | countries.
           | 
           | They themselves choose places like London not because it's a
           | rich city to live in, but because of London offering much
           | better protection from being gunned down in broad daylight
           | than cities in their home countries.
        
             | bserge wrote:
             | > because of London offering much better protection from
             | being gunned down in broad daylight than cities in their
             | home countries.
             | 
             | Highly doubt it. A targeted assassination would be as easy
             | in London as anywhere else.
        
             | Melting_Harps wrote:
             | > For those closest to the power, the easiest way to get
             | around the law... is to follow it to the letter.
             | 
             | I'd agree but not for the reason(s) you've outlined, what
             | they they will do is get their crimes legalized. Or, if
             | they get caught as in the case with Christine Lagrade [0],
             | they will get convicted but serve no sentence and remain in
             | their position. Proving that selective application of the
             | Law, nepotism and the failing up method is as prevalent as
             | ever within these circles.
             | 
             | The City of London Corporation is nearly autonomous to the
             | greater UK with it's own political and legal framework [1],
             | and given it's incredibly checkered past, you'd do well to
             | keep that in mind when you decide to be an apologist for
             | Russian tycoons and oligarchs.
             | 
             | To be clear: I'm not against wealth or the wealthy, I'm
             | merely pointing out the hypocrisy (and my disdain) for
             | those who use their relation to the State for their own
             | largess.
             | 
             | 0: https://www.bbc.com/news/world-europe-38369822 1:
             | https://en.wikipedia.org/wiki/City_of_London_Corporation
        
           | thr0wawayf00 wrote:
           | > The broader question and sentiment of this piece is: how
           | exactly have people who supposedly work in Public Service
           | amassed such wealth when these positions are paid so low
           | 
           | Usually, those folks come from money to begin with, which
           | makes the situation even worse.
           | 
           | I saw this a lot living down in Texas, state congressional
           | pay is so low that you basically have to come from money in
           | order to run and hold state office (base pay is $7.2K
           | annually and tops out at $40k for a two year period,
           | depending on how many days they're in session, basically
           | minimum wage). Even though it's technically not a full-time
           | job, it's demanding enough of one's time that they need a
           | prior career with enough flexibility in order both hold
           | office and make extra income, which excludes the vast
           | majority of the population.
        
         | tomp wrote:
         | A lot of tax avoidance is legal (Tony Blair example: there's
         | _stamp duty_ (transaction tax) on real estate in the UK, but no
         | stamp duty on transactions involving companies _that own UK
         | real estate_ ).
         | 
         | But my prior is, that if the public _knew_ about it (in general
         | "these are the ways the elites use to pay less tax than you",
         | as well as specifically "this career public official actually
         | amassed $100m wealth on $100k salary"), the laws would change
         | (e.g. introduction of wealth tax, or equalization of capital
         | and labour taxes).
        
       | seibelj wrote:
       | Since the beginning of written history there have been taxes and
       | there has been corruption. And people respond very strongly to
       | financial incentives - notice how people drive out of their way
       | to save a few pennies on gas.
       | 
       | Now imagine you have millions or billions of dollars. You do not
       | want to hand over 50% of your income to tax authorities,
       | especially if a legal way exists not to. And if you make the
       | current legal ways illegal, the money will just keep flowing to
       | invented ways. There will never be a way to avoid this, unless
       | you have a centralized AI super computer that cannot be
       | manipulated by fallible humans watching everyone's cash globally
       | and enforcing strict rules. And that will never happen.
       | 
       | Most of the Panama Papers revelations were not illegal behavior.
       | This article says most of this is perfectly legal. I'm not sure
       | what the scandal here is other than humans don't want to give
       | half their money away to the government.
        
         | CyanBird wrote:
         | > There will never be a way to avoid this
         | 
         | Yeah, there are no perfect solutions to the problem, yet that
         | doesn't mean tat our current imperfect solutions don't work to
         | deter and reduce it, if anything it shows that these imperfect
         | solutions need to be expanded upon, not discarded due their
         | inherent human imperfection
        
           | seibelj wrote:
           | Rather than playing the same failed whack-a-mole that has
           | been attempted since the beginning of civilization, maybe we
           | should try and keep taxes low, services more efficient, and
           | have alternatives to government-provided services for
           | features we want of society. You may feel better when taxes
           | are changed / raised but they will fail to do what you
           | intend.
        
             | ur-whale wrote:
             | > maybe we should try and keep taxes low, services more
             | efficient, and have alternatives to government-provided
             | services for features we want of society.
             | 
             | Yes, but the army of parasites whose livelihood depend on
             | the inefficiencies you describe beg to differ, and do so
             | most efficiently.
        
         | at_compile_time wrote:
         | Sounds like another argument in favor of a land value tax: it
         | can't be avoided by hiding one's wealth overseas.
        
         | fragmede wrote:
         | It turns out that the Pandora Papers were released by a
         | centralized AI super computer, and is testing humanity to see
         | how each individual reacts.
         | 
         | Congratulations! You've been placed on team "no one's allowed
         | to complain about things that were bad in the past and also
         | things will never get better and plus anyway it's not illegal".
         | 
         | Are you sure that's the team you want to be on (Y/N)?
        
           | bch wrote:
           | s/Are you sure that's the team.*/Click to continue./
        
         | paulpauper wrote:
         | if people respond to financial incentives they likely will
         | respond to other incentives as well. As a hypothetical, making
         | tax evasion punishable by death, like in antiquity, would
         | probably be a good incentive to comply. The consequences for
         | tax evasion are quite mild, in the US and elsewhere. You get
         | letters, more letters, maybe a visit, and finally, if you're
         | really unlucky or obstinate, a little jail time.
        
           | seibelj wrote:
           | Given how terrible bureaucracies are the world over, and how
           | many people are jailed innocently, it will be quite sad when
           | people are literally murdered by the state for not paying
           | their tax bill. And most likely the most popular and famous
           | people!
        
         | ur-whale wrote:
         | > humans don't want to give half their money away to the
         | government.
         | 
         | For a large number of people, this is very clearly a crime.
        
       | mygoodaccount wrote:
       | Another leak that will have people "outraged" by aggressively
       | upvoting and commenting on articles for two weeks. The news cycle
       | will move on, the leakers will be car bombed [0], and these
       | papers will be memoryholed.
       | 
       | You can wait around for four years til a new set of old rich
       | people get voted into power (maybe they'll be blue/red this
       | time!!!!) and hope they get rid of the loopholes they all use.
       | Maybe a couple more """revolutionary""" politicians will be
       | elected who VERBALLY DISMANTLE AND DESTROY a couple billionaires
       | in a senate hearing (OMG SO AWESOME!!!). Decide for yourself if
       | you think anything will change.
       | 
       | There does exist a great equalizer, but I won't mention it. I
       | like staying unb&.
       | 
       | [0] https://www.theguardian.com/world/2017/oct/16/malta-car-
       | bomb...
        
         | Qw3r7 wrote:
         | My thoughts exactly, which sucks.
        
         | adflux wrote:
         | What's the equalizer? Revolution?
        
           | petre wrote:
           | No, justice. What currently happenes to Szarkozy. Of course,
           | all of this happens in a country that guilotined their king
           | and his wife, so the revolution helped a bit in that regard.
        
             | namdnay wrote:
             | I really really wouldn't take France as an example of how
             | to deal with corrupt politicians. There's an astounding
             | complacency around corruption here, a politician in the US
             | or UK wouldn't have been able to get away with 1% of what
             | Chirac or Juppe or Sarkozy got up to in the 80s-90s
        
           | esarbe wrote:
           | In all honesty, that's the suitor they are toying with, isn't
           | it? As long as they can squeeze some more profit out of the
           | common people, there's no reason not to do it. (Just see how
           | Amazon treats it's workers.) It's only when people are on the
           | barricades that they will relent.
        
           | culi wrote:
           | https://www.britannica.com/topic/guillotine
           | 
           | (/s)
        
           | clydethefrog wrote:
           | The Great Leverer is indeed historically only achieved by
           | violent means.
           | 
           | https://press.princeton.edu/books/paperback/9780691183251/th.
           | ..
        
       | rich_sasha wrote:
       | I was very excited when Panama papers came out. Intrigued when
       | Paradise papers leaked. But now? Damning evidence of outright
       | crimes came out and nothing happened. In the UK IIRC it was found
       | that David Cameron evaded some taxes via offshore funds, and? He
       | said he's very sorry and didn't mean to, and that was it.
       | 
       | Everyone knew before and after the rich don't pay taxes. We don't
       | need more evidence, we need action.
        
         | jl6 wrote:
         | He didn't evade any taxes. He avoided taxes and did nothing
         | illegal. Same story with a lot of these latest leaks.
         | 
         | Immoral? Debatable. But the lack of action is because of the
         | lack of a crime.
         | 
         | The action should be to propose new legislation that changes
         | what taxes are collected, where, and when.
         | 
         | The main crimes exposed in these are money laundering rather
         | than tax evasion.
        
         | lelandfe wrote:
         | Without meaning insult, I think you should review the outcome
         | of the Panama papers leak again - it may have been a while.
         | There has been a staggering amount of legal and financial
         | recourse from the leak in countries spanning the globe.
         | 
         | Frankly, I don't know of much else like that leak in history in
         | terms of its global impact.
        
         | rcMgD2BwE72F wrote:
         | >We don't need more evidence, we need action.
         | 
         | Are these exclusive?
        
           | goldenkey wrote:
           | You know damn well what he meant.
           | 
           | * We don't require additional evidence, we need action.
           | 
           | What the fuck is with HN these days? Quit the snide bullshit.
        
             | tailspin2019 wrote:
             | Not the person you're replying to but it was just a three
             | word reply, which could be interpreted in whole bunch of
             | different ways, so it feels like you may have made a bit of
             | a leap here... :)
        
               | goldenkey wrote:
               | The commenter was succinct. They are pedantically
               | subverting and misinterpreting OPs comment into an
               | argument about exclusivity, when in fact OP displayed no
               | such idea. It's a deliberate sleight.
        
             | KoftaBob wrote:
             | Users like that get the impression that being pedantic
             | makes you look intelligent.
        
               | kbenson wrote:
               | Or maybe they think that words matter and if you care
               | enough about something to be calling people to action
               | maybe you should care enough to phrase your words so
               | they're less ambiguous.
               | 
               | Not everyone reads things the same way, even if you think
               | it's the obvious and only way to interpret something. If
               | they did, there would be a lot less misunderstandings
               | online.
               | 
               | Someone pointing out ambiguity is possibly helping you
               | refine your point and message, so if you encounter it
               | maybe try to read it less as someone being a pedantic
               | asshole and instead someone helping you express your
               | message more successfully. At a minimum it will likely
               | help you keep a good attitude or emotional state, which
               | is nothing to sneeze at.
        
               | goldenkey wrote:
               | It was rhetorical and snide. We all know there is no
               | exclusivity. OP is just asking for action for the amount
               | of already acquired information. He isn't saying we
               | shouldn't acquire more evidence.
               | 
               | There is no ambiguity, just verbal gymnastics played by
               | those who want to comment in bad conscience as if they
               | have somehow furthered the conversation.
        
           | rich_sasha wrote:
           | They're not, and sure, more evidence is not a bad thing.
           | 
           | Or is it? My reaction this time was "meh, this again". I'm
           | more and more desensitised. If anything, I found it
           | demoralising.
           | 
           | So maybe it is actually counterproductive.
        
             | DoingIsLearning wrote:
             | > I'm more and more desensitised. If anything, I found it
             | demoralising.
             | 
             | Reminds of this explanation of the soviet era
             | 'hypernormalization':
             | 
             | "The word hypernormalization was coined by Alexei Yurchak,
             | a professor of anthropology who was born in Leningrad and
             | later went to teach in the United States. He introduced the
             | word in his book Everything Was Forever, Until It Was No
             | More: The Last Soviet Generation (2006), which describes
             | paradoxes of Soviet life during the 1970s and 1980s. He
             | says that everyone in the Soviet Union knew the system was
             | failing, but no one could imagine an alternative to the
             | status quo, and politicians and citizens alike were
             | resigned to maintaining the pretense of a functioning
             | society. Over time, this delusion became a self-fulfilling
             | prophecy and the fakeness was accepted by everyone as real,
             | an effect that Yurchak termed hypernormalisation."[0]
             | 
             | [0] https://en.m.wikipedia.org/wiki/HyperNormalisation
        
             | dylan604 wrote:
             | Then, what are the purposes of the leaks. Street cred for
             | the hackers, a moral checkbox off the list for a leaker,
             | attempt at embarassment for the individuals/firms/banks
             | involved?
        
               | rich_sasha wrote:
               | Well, kudos to the leakers, and they are doing their bit,
               | sure. I guess people with a penchant for investigative
               | journalism aren't the same ones as lobbyists, politicians
               | etc. They are doing good work.
               | 
               | It's more that without someone taking it to the next
               | step, it is in vain. It feels like yet-another report in
               | what the world will be like if we don't stop CO2
               | emissions. It will be very bad. There are so many reports
               | like that, I dont bother reading them anymore. More
               | desertification. More hurricanes. Hotter summers, colder
               | winters. Droughts and floods, death and disease.
               | 
               | Meanwhile CO2 emissions are still increasing YoY.
        
       | wolverine876 wrote:
       | It's not that hard, legally, to resolve this problem. What is the
       | obstacle?
       | 
       | It's a serious question, and intended to bypass the distraction
       | and debate about despair. What is the obstacle?
        
         | TheAlchemist wrote:
         | What problem ? And what solution ?
         | 
         | I think you should start with explaining those first.
         | 
         | Thing is, it's probably easy in theory, but very hard in
         | practice.
        
       | xs wrote:
       | What I see here is tax evasion. But done in a roundabout legal
       | loopholish kind of way.
       | 
       | 1. Establish profitable company in your home country.
       | 
       | 2. Establish 2nd company in a tax haven country.
       | 
       | 3. Give 2nd company some kind of ownership, and then pay rental
       | fees, licensing fees, or simply set up a high interest loan that
       | the 2nd company loaned the first.
       | 
       | 4. Once you set up a way to make it look like you owe the 2nd
       | company tons of money, now your 1st company no longer is
       | "profitable" and actually in debt losing money, which means it
       | doesn't need to pay taxes on the massive profit it's making.
       | 
       | While I believe it's legal it hinges on bad ethical practice. But
       | many large companies do this, such as cruise ships and I think
       | Apple.
        
         | dataflow wrote:
         | What I never understood is, (how) does the money get
         | transferred to the home country eventually? Doesn't it need to
         | do that to have some utility? Otherwise, what's the point of
         | just accumulating money offshore that you can't eventually use
         | where you actually are?
        
           | underdeserver wrote:
           | There's a lot you can do, such as borrow against it as
           | collateral, transfer it to other offshore companies in return
           | for services (the entire deal happening in the tax haven -
           | therefore not taxed), or even have it hold property which you
           | can then use.
        
             | dataflow wrote:
             | But if you use it to pay someone else offshore, presumably
             | you get something in return at the home country, right? And
             | you didn't pay for it there, right? So isn't the fair
             | market value (or something along those lines) of whatever
             | you eventually receive in the home country therefore
             | taxable income? I don't understand how the value loop can
             | legally close without taxation one way or another.
        
               | Mvandenbergh wrote:
               | First of all, you can spend money on things outside your
               | home country (second/nth house, buying a new yacht, etc.)
               | and depending on how those are structured you can avoid
               | that being taxable income. If someone takes a direct
               | distribution or benefit in their country of residence and
               | domicile then yes, those are definitely taxable events
               | and careful tax avoiders pay their tax on these
               | transactions.
               | 
               | Second your intuition is correct, often people do break
               | the law at this point, it's just very hard to detect
               | without files like this which is why the previous
               | Panama/Paradise leaks have led to so many prosecutions
               | and tax recovery actions. They made clear what otherwise
               | was secret.
               | 
               | A common tactic is using the funds to buy property in
               | which you then live as a tenant. In most countries
               | (certainly in the UK) tenancy contracts are purely
               | bilateral and non-public. There is no way for the
               | government to know whether you are:
               | 
               | 1) living in a property owned by a third party ownership
               | company that you genuinely have no links to - btw many
               | rich people do this for at least some of their homes so
               | it's not like its an inherently suspicious activity. You
               | can rent whole houses in central London for 10s of
               | thousands a week.
               | 
               | 2) living in a property owned by a company of which you
               | are secretly the beneficial owner and paying market rent
               | (to yourself). This may be allowed under some very
               | carefully structured circumstances but usually not.
               | 
               | 3) Like 2 but not actually paying rent. Definitely not
               | allowed.
               | 
               | Technically they could find the difference between 2 and
               | 3 if they audited your outgoings but they would first
               | have to have a reason to even start doing that. It's not
               | like you can take a tax deduction for rent, so this
               | doesn't even show up on your taxes, they would literally
               | have to pull your bank records to look for the expected
               | outgoing rent. Telling the difference between (1) and (2)
               | is impossible without the secret ownership information.
               | 
               | Another favourite is to use offshore accounts to buy
               | things like jewellery, clothes, furniture, almost
               | anything that isn't registrable property (i.e. anything
               | other than real estate or vehicles). That is certainly
               | illegal since you're taking a benefit which should be
               | counted as income and taxed but good luck proving that.
        
               | toyg wrote:
               | Offshore entities can own properties in most open
               | economies. They don't typically get taxed where they own
               | the property or good, but where a profit is realized or
               | an action takes place.
               | 
               | For example, in TFA it's mentioned that the Blairs bought
               | an offshore company that owned a building in London; they
               | really bought the building, but doing it this way allowed
               | them to avoid property taxes in the UK that relate to
               | ownership transfers ("stamp duty"). They could then hire
               | out offices, and if they do that through the offshore
               | company that "taxable income" would similarly disappear.
               | Her Majesty's Revenues & Customs might eventually object
               | to the arrangement, but if the offshore owners are not
               | known, what are they going to do, bulldoze a historical
               | central London property? Obviously not.
        
               | slavik81 wrote:
               | > what are they going to do, bulldoze a historical
               | central London property?
               | 
               | Seize the property and auction it off to the highest
               | bidder. The process would be quite similar to a
               | foreclosure. The problem the UK has is more that the
               | stamp duty has countless loopholes. If he doesn't
               | actually owe tax, then legally that's the end of the
               | discussion.
               | 
               | I have little faith that all the loopholes in a stamp tax
               | can be closed. It would be much easier to enforce a
               | property tax system. Events are abstract and ephemeral,
               | but real property is tangible and immovable.
               | 
               | Survey the area to assess a property tax each year. Mail
               | the assessment to the property's address, and include a
               | unique account number for payment. You can audit that all
               | land in the tax jurisdiction has been assessed, and that
               | all assessments have been paid. The only thing you really
               | need to be careful about is what criteria you use for the
               | assessment. Market value is relatively safe for that.
        
               | toyg wrote:
               | That's effectively what Council Tax was originally meant
               | to be, but after a while nobody could be bothered with
               | the survey activity. They even closed the door to
               | piecemeal re-classification, after enough people started
               | challenging the band their property sat in, by passing
               | legislation that basically states the band is fixed as it
               | is until Parliament says otherwise (i.e. likely forever).
        
               | Mvandenbergh wrote:
               | Council tax was never meant to be anything like property
               | tax and was structured specifically to act in a different
               | way.
               | 
               | For example: councils don't actually set their council
               | tax rates by band. They set one rate which is the Band D
               | rate. The rates of the other bands are then set based on
               | fixed %s from that rate and the highest English rate (H)
               | is only 200% of the Band D rate.
               | 
               | The value of the lowest valued band H (based on the 1991
               | price levels) property relative to the highest band D is
               | 3.6x. So right away we see that as a % of property value
               | the typical household (D is the most common) in any given
               | place pays more than the highest valued local properties.
               | Of course it is also the case that band H is open-ended.
               | 
               | There is then the fact that these are set and collected
               | exclusively locally. That means that some of the lowest
               | council tax rates in the country are in some of the
               | richest places. Westminster and Wandsworth have Band D
               | council tax in the PS800s, Blaenau Gwent is over PS2000!
        
               | toyg wrote:
               | _> Council tax was never meant to be anything like
               | property tax_
               | 
               | Well, it was meant to _look_ like a property tax, while
               | at the same time ensuring it would disproportionately
               | affect the lower classes, for sure. It was a Conservative
               | measure, after all (which Tony Blair was obviously
               | "intensely relaxed about", since it directed money to
               | local authorities Labour controlled, hence it was never
               | repealed). As wikipedia reports: _" the Valuation
               | Tribunal Service [...] states that: "The tax is a mix of
               | a property tax and a personal tax"._
               | 
               |  _> They set one rate which is the Band D rate._
               | 
               | Yeah, and they can't even be arsed to figure out if a
               | Band D property in 1991 is still a Band D today - the
               | roof might have fallen off since then, but hey, who's got
               | time to do periodic surveys? Local councils have better
               | things to do, obviously.
        
           | curryst wrote:
           | Probably stock buybacks. Company 2 then spends the profit on
           | buying company 1's stock, which they basically burn. Stock
           | prices go up and owners recoup value through capital gains.
        
             | dataflow wrote:
             | How do you "burn" stock to raise the price in the home
             | country? Sorry, I'm not following the scheme you're
             | describing.
        
               | salawat wrote:
               | Company 2 bought stock in Company 1. Company 1 owns
               | Company 2. Compamy 2 purchased stock that confers no
               | rights or dividends.
               | 
               | The money still changes hands. Once you realize enough
               | growth, you do a stock buyback. those stocks you issued
               | to yourself? poof.
               | 
               | The magic of finance.
        
               | dataflow wrote:
               | It boggles my mind that two companies can own each other
               | cyclically like this, but regardless:
               | 
               | I still don't get the "poof" part. So we're saying C2 is
               | paying C1 for its stock, and I imagine that revenue
               | doesn't count as income for tax purposes since C2 now
               | "owns" part of C1 in return. As I see it, that means C1
               | is effectively getting a loan from C2, putting part of
               | itself as collateral. It can spend the loan to grow,
               | which is nice, sure. Let's say it does that. Now you're
               | saying C1 performs a stock buyback? Wouldn't that mean it
               | has to pay _more_ for the stocks (since they rose in
               | value)? It 'd have to bring that money from somewhere...
               | but where? I mean all it can do at this point is pay back
               | the money it got from C2, but then it's even, right?
               | There's nothing left over after that, it's just repaying
               | a loan as I see/understand it.
        
               | salawat wrote:
               | From growth. Remember, half the point of these havens is
               | to shelter money from being taxable. Nothing else
               | matters. You move it over _there_ for favorable
               | treatment. Company 2 received back money from Company 1
               | that they invested in, so it 's off Company 1's books
               | virtually, but not in reality.
               | 
               | This is the hell created by multi-jurisdictional legal
               | fictions. Short of a multi-national crackdown, being able
               | to nail down the vagueries a bunch of well compensated
               | international accounting firms and lawyers can get up to
               | is unlikely at best.
        
               | dataflow wrote:
               | I mean even if the company grew 10x, it'd have to pay 10x
               | to buy back its shares, so it wouldn't be profiting,
               | right?
               | 
               | If I'm understanding this correctly, there are 2 things
               | I'm taking away from this:
               | 
               | 1. Cyclic ownerships should be illegal.
               | 
               | 2. The investors (i.e. the public, for a public company)
               | are getting scammed here. But it's not because of tax
               | avoidance, but because company valuations (and therefore
               | share prices) are just utterly meaningless, and people
               | are... too oblivious to this? I mean, a "growth" in
               | valuation would (to me) be coupled to increase in the
               | company's net assets. So if company 1 sells a lot of its
               | product and its valuation rises... that means it's
               | gaining assets somewhere. Either that increase in assets
               | is due to sales revenue at home (in which case it'd be
               | getting taxed normally) or it's the stake it has in
               | company 2, and presumably company 2's valuation is
               | growing. But company 2's valuation is just coupled to
               | company 1's, so there's no logical reason for it to rise
               | independently. If it does, and the company is getting
               | rich that way, that just means to me that people are
               | behaving irrationally and paying more for the same thing,
               | and _that 's_ what's making companies richer (rather than
               | tax avoidance)? Alternatively if you look at it as
               | company 2 having revenue and thus company 1's stake
               | increasing in value, wouldn't there be an eventual tax on
               | that money before any person can realize it at home, and
               | thus shouldn't that correct the stock price downward? Or
               | am I completely misunderstanding something here?
               | 
               | Edit: I think I'm seeing one way this works: the stock
               | price _does_ get corrected downward, but not enough to
               | cancel out the growth, since the offshore company _did_
               | gain material assets. But then who (as in which person)
               | is getting rich without paying taxes at home, exactly?
               | Either C1 's shareholders are selling long-term capital
               | gains taxes (in which case the complaint is about long-
               | term capital gains taxes) or they're doing it short-term
               | (in which case they're still paying income-equivalent
               | taxes). Who's avoiding taxes here?
        
         | Iv wrote:
         | Several EU countries (France and UK) have, IIRC, made very
         | clear that fictive debt or fictive licensing fees are fraud an
         | would be judged as such.
        
           | [deleted]
        
           | deelowe wrote:
           | That's the thing about laws. It's up to the courts to decide.
        
           | sva_ wrote:
           | Pretty sure Ikea does it this way, and numerous others for
           | sure.
        
             | oneplane wrote:
             | Once a company becomes big enough it turns into 'yet
             | another big one' that inherits the branding and the
             | original activities but simply starts doing whatever else
             | is doing to min-max everything beyond human ethics.
             | 
             | It's like having a very small company with only a few
             | people. There won't be any HR because that kind of overhead
             | isn't something you can afford or make use of. So you work
             | 'for the boss' and if you need something your boss is also
             | the person who makes the decisions. But when the company
             | gets bigger, you now get HR between you and the boss, and
             | suddenly you are insulated. You work for the company, and
             | are beholden to HR. Every step after that is just more
             | insulation, more min-maxing and just making things worse
             | for the sake of scale. Usually.
        
               | jacquesm wrote:
               | HR does not get between you and the boss, but middle-
               | management (hence the name) does. HR gets between the
               | company and you if there is a chance of you damaging the
               | company, other than that it is mostly (regulatory) window
               | dressing and to save some cost on recruiting and
               | onboarding.
        
             | laurent92 wrote:
             | Movies too. The studio charges the movie, so the studio is
             | positive while the movie is in debt. Actors get a lumpsum
             | and a percentage on the movie benefits.
             | 
             | In this case, it's not shell companies, the studios
             | actually have in-house expertise (=shooting most of the
             | movie) while the movie mostly drives the scenario and the
             | actors, so it's harder to define what is illegal.
             | 
             | McDonalds also has a franchise system, although it's easier
             | to control whether the pricing offered to the franchisees
             | is constant or proportional to benefits.
        
           | rich_sasha wrote:
           | The UK shouldn't really raise its voice here, easily half the
           | tax havens are UK dependencies: Cayman Isles, Virgin Isles,
           | Jersey, Guernsey, Isle of Man, Gibraltar. It is inconceivable
           | to me that the UK lacks influence to stem these activities,
           | so the only conclusion is that it willingly accepts status
           | quo.
        
             | unreal37 wrote:
             | The City of London itself is a tax haven.
             | 
             | [0] https://platform-
             | production.s3.amazonaws.com/therules-134-Ci...
        
             | jacquesm wrote:
             | There is a reason that London was the financial
             | headquarters of the EU while it lasted. They are going to
             | try to do what they can to attract EU capital now that the
             | last of these rules no longer apply to them, and will be
             | the de-facto tax haven for the rest of the world except for
             | the five-eyes.
        
               | rich_sasha wrote:
               | Well, the UK is well suited to finance in many ways, most
               | of the legit. The way courts work for example. Maybe a
               | bit like France and Italy have a natural talent for
               | couture, say.
               | 
               | But the shady stuff is sure there, and shady. UK high end
               | property market seems to be a Monopoly-esque money
               | laundering machine, with the extra inconvenience of
               | having physical real estate attached to it.
               | 
               | Maybe one good replacement market for NFTs.
        
           | moffkalast wrote:
           | Ireland: _chuckles_ "I'm in danger"
           | 
           | This is literally their entire economy lmao.
        
           | earnesti wrote:
           | How can you say what is fictive and what not? Licensing fees
           | and loans exist on market anyway.
        
             | nabla9 wrote:
             | You figure out what the intent is.
             | 
             | If the same owner is behind both, and there seems to be no
             | other reason that avoiding taxes, guilty.
        
             | burnished wrote:
             | "oh no, our publicly very profitable company actually
             | doesn't make any money because of all the.. license fees we
             | pay, that we are clearly in a position to bargain for
             | better, yet mysteriously do not! oh its such a coincidence
             | that everyone in the C-Suite still makes money off the the
             | shell company."
             | 
             | You can obfuscate fraud. But don't try that post-modern
             | horseshit "what is being, man" on us.
        
             | travoc wrote:
             | Any time legislatures have a hard time defining the line
             | between legal and illegal behavior, courts tend to take a
             | "we'll know it when we see it" approach. Justice might be
             | served but rule of law is diminished.
        
               | kazen44 wrote:
               | a major difference between continental law and common law
               | is the intent of the law though.
               | 
               | If the court can prove that they did not handle with the
               | intent of the law, it can still be decided that this is
               | fraud. In a common law system this is not possible.
        
               | bryanrasmussen wrote:
               | Common law is based on precedent and common sense
               | application of the law, so it is generally common law
               | systems which are described as being open to
               | interpretation.
        
               | salawat wrote:
               | Common sense has nothing to do with common law after a
               | couple generations morph any type of sense a law could
               | have made into something nigh unrecognizable. Go digging
               | through case law in different jurisdictions and marvel at
               | the contradictory interpretations that arise. This is why
               | strategic changes in jurisdiction are a valuable part of
               | litigative strategy.
        
               | tshaddox wrote:
               | Not really. "Fictive" just means "not real," and courts
               | have processes for judging whether things are real or
               | not. The fact that courts still have to judge _the actual
               | facts of the matter_ doesn't mean the legislature isn't
               | doing its job or that rule of law is diminished. It's no
               | different than courts judging the truth value of claims
               | in a murder case or a fraud case.
        
             | kemitche wrote:
             | The existence of valid licensing fees does not mean all
             | licensing fees are valid. Surgeons are allowed to legally
             | cut people, that doesn't mean we can't figure out when
             | someone was illegally stabbed.
             | 
             | Let's not give up without even trying.
        
         | fragmede wrote:
         | Step 4 glosses over a _ton_ of details but is sufficiently
         | correct in Apple 's case, which pioneered the Double Irish.
         | That was supposed to stop in 2020, but unless you keep up with
         | the world of corporate finance and global tax law, things keep
         | shifting.
         | 
         | Apple's easy to pick on, they're one of the richest companies
         | in the world and should pay more taxes. But for companies that
         | are less successful, it's entirely possible that the second
         | company _is_ actually losing money. Without an appropriately
         | sized army to track through the 200th company (tracking
         | transactions between two companies is simplified to make the
         | tax evasion easy to understand. Real world tax evasion is
         | dramatically more complicated.)
        
         | londons_explore wrote:
         | The step here that is illegal is the moment company 1 takes out
         | a high interest loan from company 2.
         | 
         | Company 1's directors have to do what is in the best interests
         | of the company. If they choose to sign up to a high interest
         | loan which will take all their profits, that isn't decision-
         | making in the best interests of company 1. That's the point
         | they can be put in prison.
         | 
         | I just don't quite understand how nobody is prosecuting them...
        
         | opportune wrote:
         | It is technically tax avoidance. Tax evasion = not paying taxes
         | you legally owe, is a crime. Tax avoidance = using legal means
         | to reduce the amount of tax you owe, not a crime (by
         | definition).
         | 
         | This is why I support taxes such as those that France levies on
         | digital revenue originating within their country. I also think
         | it makes sense to wholly eliminate corporation taxes (which are
         | not only avoidable, but are a form of double taxation) and
         | replace them with these revenue taxes.
        
         | koolba wrote:
         | > Once you set up a way to make it look like you owe the 2nd
         | company tons of money, now your 1st company no longer is
         | "profitable" and actually in debt losing money, which means it
         | doesn't need to pay taxes on the massive profit it's making.
         | 
         | It's called "transfer pricing" and it's been going on for
         | decades: https://en.wikipedia.org/wiki/Transfer_pricing
         | 
         | Short of a revenue (as opposed to income) corporate tax or VAT,
         | it's a very tricky problem to address. Maybe an excise tax on
         | foreign remittances to match the highest corporate bracket.
         | 
         | Or you just scrap corporate tax entirely because it's a
         | terrible idea anyway.
        
           | toyg wrote:
           | Incidentally, this is the real reason why "Western" states
           | are so hung-up on copyright enforcement: nevermind the movie
           | bullshit, IP is a door throughout which profits can be
           | arbitrarily shuffled around by the rich and the powerful. It
           | creates a parallel reality where imaginary goods can be
           | transferred from jurisdiction to jurisdiction, creating
           | infinite possibilities for transfer pricing. And if anyone
           | objects? Ahh, they clearly want to starve artists and
           | creatives!
           | 
           | It's genius, and we all go along with it because how can you
           | hate art and imagination? It's such a fundamental side of
           | human nature. By turning its output into pseudo-goods, we
           | think we're moving up in the civilization scale, whereas
           | we're just enabling a parasitical accumulation of capital.
        
             | inertiatic wrote:
             | Can you explain how that works for someone ignorant like
             | myself?
        
               | SpicyLemonZest wrote:
               | In general, every country you do business in will charge
               | taxes based on the profit you make within that country.
               | So what you do is:
               | 
               | * Set up a company in the country where you'd like to pay
               | taxes, and give it all of your intellectual property.
               | 
               | * Set up subsidiaries in the countries where you don't
               | want to pay taxes. Have them pay licensing fees to the
               | first company for the IP, making sure to set the
               | licensing fee high enough that the subsidiaries don't
               | make much profit.
               | 
               | * Now most of your profit lives in the first country, no
               | matter how much business you do elsewhere.
        
               | NaturalPhallacy wrote:
               | > _intellectual property_
               | 
               | A concept invented by and for lawyers. Call it imaginary
               | property.
        
               | SpicyLemonZest wrote:
               | I don't think that it's productive to make up snarky
               | names for concepts I don't like.
        
           | pkaye wrote:
           | > Or you just scrap corporate tax entirely because it's a
           | terrible idea anyway.
           | 
           | If you scrap corporate tax would rich people hold all their
           | wealth in corporations so as not to pay any personal income
           | tax?
        
             | namdnay wrote:
             | You tax it when they take the money out to spend it on
             | themselves
        
               | judahmeek wrote:
               | That would require a progressive, rather than moralistic,
               | sales tax.
        
               | salawat wrote:
               | Except they don't. They create corporations to do it for
               | them.
               | 
               | As long as creating a legal fiction is a mere matter of
               | having someone else do paperwork, you either need to
               | extract tax from legal fictions, or kiss a big chunk of
               | taxable activity goodbye.
        
             | draugadrotten wrote:
             | The best way to "tax" the rich is to make them spend all
             | their money. The more the rich consume, the more the less
             | rich benefit. It's turtles all the way down after that.
             | 
             | So please order that custom yacht now, all you HN unicorns.
        
               | bsanr wrote:
               | What if the point of taxes is not simply to redirect and
               | redistribute funding, but also to reduce economic
               | activity and, by extension, emissions and inflation?
        
             | judahmeek wrote:
             | Yes, Yes, they would.
        
       | trashtestcrash wrote:
       | So where do we find the list of names by country?
        
         | r721 wrote:
         | >Of the more than 300 politicians and public officials
         | unearthed in the PandoraPapers, we profiled more than 50 of the
         | biggest names - and their secret offshore holdings -- in the
         | Power Players interactive.
         | 
         | https://twitter.com/ICIJorg/status/1444703221558259714
         | 
         | https://www.icij.org/investigations/pandora-papers/power-pla...
        
           | trashtestcrash wrote:
           | I guess we have to wait for the full list. There was a map
           | with names from other countries than the 56ish shortlisted.
        
             | miohtama wrote:
             | Yes, it would be much more interesting to see the
             | corruption of your local small and middle tier politicians.
        
       | vmception wrote:
       | Imagine the hubris necessary to think everyone has to store all
       | their wealth in the country they were born in.
       | 
       | These discussions assume people _didn 't_ pay taxes before
       | purchasing assets elsewhere.
       | 
       | Cute.
        
         | jrexilius wrote:
         | It also seems a foregone conclussion that if you are wealthy,
         | you don't deserve privacy. Admittedly, some of that gets fuzzy
         | if you run for a public office, but that isn't really the
         | underlying notion being put forward here.
        
       | seibelj wrote:
       | Since the beginning of written history there have been taxes and
       | there has been corruption. And people respond very strongly to
       | financial incentives - notice how people drive out of their way
       | to save a few pennies on gas.
       | 
       | Now imagine you have millions or billions of dollars. You do not
       | want to hand over 50% of your income to tax authorities,
       | especially if a legal way exists not to. And if you make the
       | current legal ways illegal, the money will just keep flowing to
       | invented ways. There will never be a way to avoid this, unless
       | you have a centralized AI super computer that cannot be
       | manipulated by fallible humans watching everyone's cash globally
       | and enforcing strict rules. And that will never happen.
       | 
       | Most of the Panama Papers revelations were not illegal behavior.
       | This article says most of this is perfectly legal. I'm not sure
       | what the scandal here is other than humans don't want to give
       | half their money away to the government.
        
         | jyscao wrote:
         | Amen. While far from being super wealthy, many if not most
         | people on HN could probably benefit significantly from better
         | tax planning on their own personal incomes.
        
           | mandmandam wrote:
           | >many if not most people on HN could probably benefit
           | significantly from better tax planning on their own personal
           | incomes.
           | 
           | Those people are comfortable, well into the top 10% of
           | earners. And I think it's nice that they don't spend money
           | hiring a slimeball tax accountant to help avoid paying their
           | part to society. I think it's sick that there are people
           | making 6 or 7 figures a year helping cunts to save 7 or 8
           | figures a year that should be going into schools and
           | infrastructure, and it's even sicker that those people are
           | looked up to because they drive nice cars and wear expensive
           | suits.
           | 
           | But that's not what these papers are about - they're about
           | systematic secretive theft, from all society, on a massive
           | scale. And this at a time when people are still dying from
           | hunger and deprivation even in the richest countries.
        
         | Iv wrote:
         | That's like saying murder should be legal as it is impossible
         | to totally prevent it.
        
           | seibelj wrote:
           | And now you are comparing tax evasion to murder! I would say
           | there's a difference. Otherwise we need to give the IRS
           | execution abilities(?)
        
       | miohtama wrote:
       | Is there any way to get access to the source material?
        
         | unreal37 wrote:
         | No, there never is.
        
           | geysersam wrote:
           | Some is available: (ICIJ document
           | database)[https://offshoreleaks.icij.org/pages/data]
        
       | lmeyerov wrote:
       | This would be fun to visualize! If someone is doing a jupyter
       | notebook of it, I'd love to try doing some GPU graph views, let
       | me know!
        
       | blobbers wrote:
       | Not loading for me. DOS? Or blocked by our friends above?
        
         | erk__ wrote:
         | Loading fine for me so probably some routing issues
        
       | hashimotonomora wrote:
       | They are making it look bad or controversial, but offshore
       | banking in itself is not wrong. They should concentrate on
       | corruption at the source level. This report is worrying from a
       | privacy perspective, looks like generalized blackmailing, and
       | attempts to generate attention to ICIJ who benefits from it.
       | 
       | Edit: please articulate why you disagree with my comment instead
       | of downvoting, as this comment is on topic and downvoting should
       | be reserved for irrelevant or offensive comments.
        
       | emmelaich wrote:
       | Another good read is
       | https://www.abc.net.au/news/2021-10-04/pandora-papers-austra...
       | 
       | Australia's ABC TV will be doing a "Four Corners" program on the
       | subject tonight.
        
       | 1024core wrote:
       | I would much prefer that the ICIJ make the original raw data
       | available. Right now we don't know what they have omitted from
       | the data.
       | 
       | ICIJ: stop being the gatekeepers.
        
         | nojito wrote:
         | Why would they release raw data?
         | 
         | That would be a massive break of journalistic integrity.
        
           | moffkalast wrote:
           | People still have journalistic integrity these days? Now
           | that's a real joke.
        
         | xojoc wrote:
         | Previous leaks can be downloaded from here:
         | https://offshoreleaks.icij.org/pages/database So probably the
         | Pandora Papers will be downloadable in the near future too.
        
           | tpmx wrote:
           | _The database does not divulge raw documents or personal
           | information en masse. It contains a great deal of information
           | about company owners, proxies and intermediaries in secrecy
           | jurisdictions, but it doesn't disclose bank accounts, email
           | exchanges and financial transactions contained in the
           | documents._
        
       | missedthecue wrote:
       | None of the named people are American. Interesting.
       | 
       | https://www.icij.org/investigations/pandora-papers/power-pla...
        
         | slowmovintarget wrote:
         | None of the named people in the article are from the US, yet
         | the actual papers have Americans aplenty:
         | 
         | > ...more than 130 billionaires from Russia, the United States,
         | Turkey and other nations.
         | 
         | But you right, zero politicians from the US appear in the
         | Pandora Papers themselves.
        
         | petr_tik wrote:
         | I am not American and don't know how much coverage of
         | European/World news an average American consumes (without US-
         | centric commentary).
         | 
         | It's also worth noting that earlier this week, this came out as
         | confirmation of insider trading by the policy makers, who are
         | even less elected than Erdogan
         | https://www.ft.com/content/b899a77f-9853-4d20-ad84-21848b7e7...
        
       | eyeball wrote:
       | Wonder if the person who leaked it will be killed in a car
       | bombing like the journalist who broke the Panama papers.
        
         | wolverine876 wrote:
         | Can you provide some evidence of that happening?
        
           | eyeball wrote:
           | https://nypost.com/2017/10/16/panama-papers-journalist-
           | kille...
        
       | lamontcg wrote:
       | So who is the modern day robinhood out there that is sponsoring
       | these hacks and leaks?
        
       | twofornone wrote:
       | >The files include disclosures about major donors to the
       | Conservative party, raising difficult questions for Boris Johnson
       | as his party meets for its annual conference.
       | 
       | Not to start a flamewar but its increasingly blatant bullshit
       | like this that makes me extremely wary of modern news media. The
       | disingenuous implication here is that in all 11.9MM documents
       | there were only ties to conservatives. It's lying without telling
       | a lie. In fact this paragraph serves no purpose except to push a
       | political agenda and take a dig at the British analog to Trump,
       | who seems to get the same treatment in media.
        
       | Wronnay wrote:
       | Why do politicians send their money to offshore havens when they
       | could reduce the tax in their own country?
       | 
       | So that it doesn't affect their source of income? (The taxes we
       | ordinary ppl pay)
        
         | vnjxk wrote:
         | so they could keep pour money into whatever makes their voters
         | happy
        
         | rcMgD2BwE72F wrote:
         | > Why do politicians send their money to offshore havens when
         | they could reduce the tax in their own country?
         | 
         | Maybe because the people actually want to tax the rich? And
         | because the politicians who evade taxes don't intend to pay
         | their fair share anyway?
        
           | moffkalast wrote:
           | When has the will of the people ever effected what
           | politicians do?
        
             | lugu wrote:
             | How do you know what the will of the people is?
        
         | lifty wrote:
         | Many of the fortunes you see in these leaks are illegally
         | obtained through political favoritism.
        
         | odiroot wrote:
         | By taxing one group of people you have the means to "buy" votes
         | from other groups of people. Helps staying in power.
        
       | input_sh wrote:
       | For those wondering how this compares to Panama and Paradise
       | Papers, those were leaks from mostly one company. This one
       | includes 14 spread across many jurisdictions.
        
         | beermonster wrote:
         | Thank you. I was in fact wondering ! :)
        
       | david_allison wrote:
       | 502s. Is this mirrored?
        
         | xojoc wrote:
         | It loads fine for me.
        
         | mathattack wrote:
         | I was ok on the main page. I got 502 when I went to the Secrecy
         | Brokers section. Appropriate I guess.
        
         | ta1234567890 wrote:
         | 504s here
        
       | jumelles wrote:
       | This is fascinating - but who decided to name them Pandora,
       | Panama, and Paradise? Way too easy to mix them up.
        
         | rescbr wrote:
         | Paradise - "tax haven" is translated as "tax paradise" in many
         | languages.
         | 
         | Panama - well, Mossack Fonseca was in Panama.
        
         | megous wrote:
         | ...Papers
         | 
         | Some alliteration fetish.
        
         | VladimirGolovin wrote:
         | Alliteration makes the names more catchy.
        
       | fmakunbound wrote:
       | > For a few hundred or a few thousand dollars, offshore providers
       | can help clients...
       | 
       | Heh this is totally affordable for regular jack offs like me.
       | Perhaps someone will create a public benefit corporation (benefit
       | for the irony), democratize access to these schemes for everyone,
       | draw the ire of government when tax revenue plummets and lead to
       | new laws enacted.
        
       | [deleted]
        
       | __turbobrew__ wrote:
       | In Canada, shell companies -- run by the owner's lawyers -- can
       | hold property and there is no way to trace the property back to
       | the original owners. The courts have found that the lawyers
       | cannot be compelled to divulge the property ownership under
       | lawyer-client confidentiality.
       | 
       | It is kind of insane that this is even allowed. How do you plan
       | to tackle money laundering, corruption, and transparency when you
       | cannot even figure out who owns the property in the first place?
        
         | turbinerneiter wrote:
         | If there is no owner to be found, it becomes government
         | property. I think the owners would present themselves quickly.
         | 
         | We let this happen. We don't have to.
        
           | philjohn wrote:
           | More to the point, the Canadian parliament could simply
           | outlaw this property holding arrangement.
        
             | newsclues wrote:
             | Not when members of parliament are property flippers in
             | some of the most expensive places in the world.
        
         | goatsi wrote:
         | At least in BC a new law means that the Beneficial owner needs
         | to be identified.
         | 
         | https://www2.gov.bc.ca/gov/content/housing-tenancy/real-esta...
        
           | __turbobrew__ wrote:
           | We will see if this will hold up in court. When the ultra
           | rich are threatened you can bet that a long lawsuit will
           | follow.
        
       | [deleted]
        
       | young_unixer wrote:
       | This is why Monero is the future.
       | 
       | With Monero, anyone can hide as much money as they want, and
       | transact with trusted parties without anyone knowing, and there's
       | no practical way for any government or journalist to snoop on
       | them.
        
         | ostenning wrote:
         | Maybe, governments are on the offensive against privacy coins
         | like Monero. I believe Australia outlawed it. I wouldn't be
         | surprised if increasingly harsh penalties were imposed as their
         | popularity grows
        
           | moffkalast wrote:
           | The thing about decentralized things though... they tend to
           | be nigh impossible to effectively ban.
        
           | Zircom wrote:
           | I was just reading today the IRS has an outstanding bounty of
           | 625,000 for anyone that can find a privacy vulnerability in
           | Monero, not that anyone is gonna sell it to the US Government
           | for that little when you can get so much more on the dark
           | net/black market
        
         | tgv wrote:
         | Another way to withhold money from the poor. Excellent
         | thinking. What's next? A little execution every now and then to
         | keep them under control?
        
           | young_unixer wrote:
           | Another way to protect your money from being stolen, yes.
           | 
           | Having money is not violent, so I don't know why you bring up
           | executions. The violent ones here are the governments.
        
         | [deleted]
        
         | mike_d wrote:
         | https://ieeexplore.ieee.org/document/8806723
        
       | Iv wrote:
       | It is time to cut down the tax havens from international
       | financial circuits.
        
         | earnesti wrote:
         | Just ban them from using bitcoin and other cryptocurrencies and
         | we should be fine.
        
         | piokoch wrote:
         | How could you cut off City of London Corp from international
         | financial circuits. Or the Netherlands, which is one big tax
         | paradise even though it may seem it is not. Luxembourg? Don't
         | think that tax heavens are some remote, distant islands
         | governed by some petty lord.
         | 
         | Taxation is really hard to enforce in the modern World. The
         | biggest problem is that small, local companies cannot compete
         | with big ones because they don't have resources to overcome
         | taxation.
         | 
         | For me it make sense more sense to abandon corporate tax at all
         | and make sure that all the resources, public services that
         | company uses in a given country are paid by the company. If
         | company uses trucks, it should pay for roads, etc.
         | 
         | I don't think that Facebook that operates from US and uses US
         | resources and services should pay CIT tax in, say, France. If
         | it uses internet infrastructure, just make Facebook to pay for
         | it fair amount and that's all.
        
           | rcMgD2BwE72F wrote:
           | >Taxation is really hard to enforce in the modern World.
           | 
           | No, City of London only exists as it is, because the rest of
           | the country let it do its thing and destroy the fabric of the
           | society.
           | 
           | It's not hard to enforce taxation when those who make the
           | laws actually intend to have it enforced. Right now, those
           | who write and enforce the law keep siding with those who
           | evade taxes. Maybe we should change the people in power, and
           | that is not _that_ hard. The problem is that most media are
           | owned by the ones who evades taxes, so the level of noise
           | made these scandals remains under control.
        
         | unreal37 wrote:
         | The United States is a tax haven.
         | 
         | [0] https://www.forbes.com/sites/toddganos/2019/09/19/worlds-
         | bes...
        
       | lordnacho wrote:
       | It's time to have a big talk about transparency.
       | 
       | Some of the people who defend the ultra-rich are also the ones
       | who claim to be in favour of free markets. A small bit of
       | economic orthodoxy is that for free markets to work, parties need
       | to be informed (and externalities priced in, but that's another
       | story). This is not just in terms of "this is the price of
       | bananas" but also in terms of knowing eg what various salaries
       | are, which businesses are profitable, etc.
       | 
       | How can we have free markets when we don't even know who owns
       | what?
       | 
       | As for taxation, there needs to be an overhaul. Things need to be
       | simpler, and I say this as someone who has used international tax
       | advisors. There's no reason the tax guy's diagram of your
       | business should be more complicated than your own diagram. Moving
       | profits to other countries shouldn't be possible, or rather, it
       | should be more fixed by the nature of the business than by the
       | desires of the CFO. We simply hear too much about "selling IP
       | rights" to subsidiaries and similar schemes that are clearly
       | meant to lower tax rather than increase revenue. Granted some
       | things will be legitimate, but it's important that some vague
       | concept of fairness is adhered to. This again goes back to
       | transparency. We invented corporations to help improve society,
       | so we ought to know what kinds of things people are doing with
       | them.
       | 
       | Edit:
       | 
       | Perhaps the way to see it is, if you say "we make money by
       | selling coffees in the UK" you would expect that entity to report
       | a tax structure that contains a bunch of coffee and UK related
       | entries. Reporting to investors ought to mirror reporting to the
       | taxman.
        
         | chiefalchemist wrote:
         | > How can we have free markets when we don't even know who owns
         | what?
         | 
         | Good point, but take a number. We can't have free markets
         | because most "regulation" is set up to favor some side or the
         | other. There isn't even and fair competition. What we have is
         | government sanctioned winners (and losers).
         | 
         | Before we get to who owns what, let's talk about how Uncle Sam
         | can shamelessly put his thumb on the scale (read: bias and
         | corruption) and too rarely be called out for doing so.
        
         | whakim wrote:
         | I think this hits the nail on the head. Wealth is protected by
         | a vast array of national and international laws and
         | institutions - everything from protection of intellectual
         | property to the technicalities of making sure that you and I
         | can't both own the same piece of property at the same time. In
         | return for this, it's not unreasonable for national governments
         | to require more transparency in terms of who owns what. (By the
         | by, I think the real reason this doesn't happen is the obvious
         | suspicion that it could lead to more progressive forms of
         | taxation, e.g. wealth taxes.)
        
         | pibechorro wrote:
         | // How can we have free markets when we don't even know who
         | owns what?
         | 
         | Free markets exist regardless of how you choose to assign
         | property to people. Be it violence or consensus. Ownership is
         | to be decided by the parties involved in the exchange. 3rd
         | partys are an easy solution.
        
           | pessimizer wrote:
           | > Ownership is to be decided by the parties involved in the
           | exchange.
           | 
           | No, ownership is to be decided by governments who use force
           | to protect property rights. They may take advice from the
           | parties involved in the exchange, they may decide that
           | neither party involved in an exchange was the owner.
        
         | cblconfederate wrote:
         | Alternatively, governments need to open up these schemes to
         | everyone so they become accessible to every middle class
         | person. BUT they 'll also have to compete with other
         | governments about providing better and transparent taxation
         | options. Right now the schemes are limited not only to the rich
         | but to the well connected rich
        
         | bobbob1921 wrote:
         | Maybe part of solution is higher sales taxes , and less (or
         | zero) other taxes. Ie tax mainly (only?) at the purchase of a
         | good or service. I don't recall seeing massive sales tax fraud
         | scandals, atlease at any meaning scale.
        
           | whakim wrote:
           | Sales taxes are logistically simple but also highly
           | regressive, so the wealthy wouldn't even have to use
           | loopholes to enjoy an ultra-regressive tax system :).
        
         | specialist wrote:
         | > _We simply hear too much about "selling IP rights" to
         | subsidiaries and similar schemes that are clearly meant to
         | lower tax rather than increase revenue._
         | 
         | Huh. Made me wonder if advocates of IP reform could claim
         | improved tax sanity as a benefit.
         | 
         | Happily, not an original thought.
         | 
         | Here's the first hit via ddg:
         | 
         | Intellectual Property Law Solutions to Tax Avoidance [2015]
         | 
         | https://www.uclalawreview.org/pdf/62-1-1.pdf
         | 
         |  _" Multinational corporations use intellectual property (IP)
         | to avoid taxes on a massive scale, by transferring their IP to
         | tax havens for artificially low prices. Economists estimate
         | that this abuse costs the U.S. Treasury as much as $90 billion
         | each year. Yet tax policymakers and scholars have been unable
         | to devise feasible tax-law solutions to this problem. This
         | Article introduces an entirely new solution: change IP law
         | rather than tax law. Multinationals' tax-avoidance strategies
         | rely on undervaluing their IP. This Article proposes extending
         | existing IP law so that these low valuations make it harder for
         | multinationals to subsequently litigate or to license their IP.
         | For example, transferring a patent for a low price to a tax-
         | haven subsidiary should make it harder for the multinational to
         | demonstrate the patent's validity, a competitor's infringement,
         | or entitlement to any injunctions. The low transfer price
         | should also weigh toward lower patent damages and potentially
         | even a finding of patent misuse. Extending IP law in such ways
         | would thus deter multinationals from using IP to avoid taxes.
         | Both case law and IP's policy justifications support this
         | approach."_
         | 
         | Also...
         | 
         | > _How can we have free markets when we don 't even know who
         | owns what?_
         | 
         | Yup. Open markets require symmetrical information.
        
         | thr0wawayf00 wrote:
         | > We invented corporations to help improve society
         | 
         | I think it's easy to say this, but I'm not sure the history of
         | corporations bears this out. Technically, the first
         | corporations were colonial expeditionary forces (like the Dutch
         | VOC) that were sent to Africa and the Caribbean to control
         | various types of precious resources and we all know what
         | happened there.
         | 
         | I guess it all depends on who "society" is in your statement,
         | because someone has always has to lose in a corporate
         | structure.
        
           | lordnacho wrote:
           | Yeah perhaps I should say I was thinking more about the
           | limited liability form that got established sometime in the
           | 1800s across a variety of western countries. The government
           | orgs are a thing too, of course, but things that are that
           | closely tied to government tend to have their own access to
           | enforcement.
           | 
           | It's more that at one point during the industrial revolution,
           | it became common that someone would make a private venture,
           | incorporate it, and from there the law granted a number of
           | modern considerations that we still live with. I'm thinking
           | of limited liability and its effect on bankruptcy.
        
           | earnesti wrote:
           | Firsr corporations were basically groups of people killing,
           | torturing and exploiting less advanced civilizations
           | overseas. Over the time capitalism has developed towards more
           | peaceful culture, not the other way around as people often
           | imply.
        
             | thr0wawayf00 wrote:
             | I'm certainly not trying to imply that capitalism is more
             | or less peaceful than it was in the 17th century, I guess
             | the main point that I'm trying to make is that corporations
             | exist to generate profit, they never really existed to
             | improve society.
             | 
             | A lot of the shifts towards a more humane version of
             | capitalism came through outside forces like organized labor
             | (i.e. the 40 hour workweek, the establishment of child
             | labor law, etc.). These were not things that corporations
             | volunteered, it took lots of people threatening to stop the
             | system in order to achieve many of the benefits we enjoy
             | today. We'd still be working 7 days a week starting as
             | small children if those outside forces didn't establish
             | many of those fundamental changes for us.
        
             | [deleted]
        
           | LudwigNagasena wrote:
           | The VOC was established by the government because it didn't
           | like that there were many competing merchant companies. It
           | wasn't the first company, it was sort of the first public
           | company.
        
             | thr0wawayf00 wrote:
             | Sure, I'm not trying to argue that VOC was the very first
             | company. Companies of various types date back to the silk
             | road. But large-scale corporations were largely
             | conceptualized during mercantilism and their history is
             | inextricably tied to colonialism, which can't be overlooked
             | when people start saying things like "corporations were
             | created to help society." They helped some people, but they
             | also wiped out entire populations (see the Banda Islands).
        
               | mistrial9 wrote:
               | I read a lengthy account of US Corporate history in
               | graduate school (whose exact title eludes me at the
               | moment). My impression is that in the US, there was a
               | desire to tie transportation to broader physical markets,
               | and include decreasing costs by owning the warehouse and
               | distribution infrastructure. On the marketing end, a
               | common brand name for a family of products was also owned
               | by the corporation. An important early US example is the
               | National Biscuit Company NABISCO. There were no US
               | national food companies, as each market had the
               | combination of brands, storage and distribution for the
               | food product. The corporation held assets large enough to
               | tie market regions together. It was not a small feat and
               | was very much the Big Markets Tech of the time. Sears and
               | Roebuck from Chicago form a different model, with non-
               | perishable goods.
               | 
               | For international finance, early 20th century oil played
               | a special role, not adequately described here.
               | 
               | As far as the parent comment about corporations "killing
               | people" .. this is true but naive.. since the Romans and
               | before, brutality was the norm, not the exception. Every
               | educated person and most others knew about extreme forms
               | of collective abuse, it had happened again and again. The
               | very formation of civilization, including merchant and
               | trade functions, was generally meant to be an improvement
               | on past forms. Rarely, but with serious circumstance,
               | some merchant company would rape and murder their way to
               | fortune for a while. But karma is a bitch as they say,
               | and those things did change. The tame history I cite
               | above, was specifically aimed at making a better economic
               | engine, for profit by ownership, which upon consideration
               | was the chosen path.
        
               | thr0wawayf00 wrote:
               | That's really interesting, I'd read the crap out of that
               | US corporate history book if you ever recall the name.
        
               | LudwigNagasena wrote:
               | >can't be overlooked when people start saying things like
               | "corporations were created to help society."
               | 
               | Uhm, who says that? Corporations were always created by
               | people who wanted to cooperate to pursue their common
               | interests.
        
               | eropple wrote:
               | That's not correct. Corporations, particularly in the
               | limited-liability sense of the term, are created by
               | _society_ , not people. The laws of a jurisdiction
               | provide a carve-out for a fictional entity that gets
               | special rules to protect the people who act as its brain.
               | But that's different from those people _creating_ it.
               | 
               | And to this end, the only reason to create a corporation
               | _is_ to make society better. If they 're not, we have the
               | ability to revoke their charters, and we should use that
               | more.
        
               | thr0wawayf00 wrote:
               | > And to this end, the only reason to create a
               | corporation is to make society better
               | 
               | I'm sorry but this is patently false, the reason to
               | create a corporation is to capture profit.
               | 
               | Want to make society better? There are numerous non-
               | profit and government organizations that broadly aim for
               | this goal which do not turn a profit. The goal of a
               | corporation is to sell goods or services, and hopefully
               | those goods or services do in fact better society.
               | However, this is far too often not the case to make the
               | argument that corporations exist to improve society. Look
               | at how much control corporations have over our society
               | today, they're practically invincible and indemnifiable
               | in our current culture because they're so much more
               | insulated legally than individuals.
        
               | eropple wrote:
               | Perhaps I was unclear, but you get that you're lecturing
               | me about what I just said, right? What you are describing
               | is the goal for a person to apply to have a corporation
               | created for them to manage. That's not the reason that
               | society allows corporate charters to exist. Society need
               | not allow a corporate charter to be established that does
               | not benefit that society, and can revoke them should they
               | not be achieving the goals of the society that grants
               | them.
        
               | thr0wawayf00 wrote:
               | It is literally a direct quote from the post I originally
               | responded to.
        
         | einpoklum wrote:
         | "Free" and "market" are contradictions. Markets exist when
         | individuals can amass capital irrespective of wider social
         | needs, and this necessarily requires armed force, or the threat
         | of armed force, to prevent people from collectively deciding
         | about resource allocation. That's the state. Naturally the
         | state also enforces many things besides ownership of capital,
         | some of them better (like minimum wage and health and safety
         | codes) and some worse. But the point is that even if you had
         | the fantastical and anti-realistic "perfect information",
         | markets wouldn't be "free".
         | 
         | At the same time, markets do "work". That is, the results of
         | market interactions are what you might expect from market
         | interactions: Accumulation of capital in fewer hands, economic
         | cycles of various kinds, some motivation for innovation and
         | lots of innovation for exploitation, war, scams and such...
        
         | losvedir wrote:
         | You call it "economic orthodoxy" but it's really nothing of the
         | sort. There's not even really a technical definition of "free
         | markets" so I don't know where you're getting your assertions.
         | 
         | I think you're kind of gesturing at the concept of "perfect
         | competition", which is rigorously defined and does have
         | technical requirements [0], one of which is perfect
         | information. But it actually doesn't really apply to the tax
         | situation of the owner.
         | 
         | In other words, for political and ethical reasons, there's a
         | lot of reform that can and should be done, but I wouldn't dress
         | up the argument in the form of "economic orthodoxy", unless
         | you're talking about actual economic orthodoxies like lowering
         | corporate income tax and preferring VAT to personal income tax.
         | 
         | edit: I should soften my confidence here, it's been a while
         | since I did economics. At least, I've never heard of
         | transparency extending beyond the good or service being a
         | requirement for perfect competition... do you have a source for
         | that, or can you clarify how it would affect things?
         | 
         | [0]
         | https://en.m.wikipedia.org/wiki/Perfect_competition#Idealizi...
        
           | lordnacho wrote:
           | > unless you're talking about actual economic orthodoxies
           | like lowering corporate income tax and preferring VAT to
           | personal income tax.
           | 
           | Those are more political ideologies than anything.
           | 
           | By economic orthodoxy, I simply mean that it's a fairly
           | common economic teaching that bad things happen when parties
           | are uninformed. For instance Akerlof lemons is about
           | information asymmetry.
           | 
           | I'm not referring to any specific model (monopolistic
           | competition etc) but to the general observation that a fair
           | few economic models point out that having wrong information
           | causes problems.
        
         | [deleted]
        
         | pjc50 wrote:
         | > Reporting to investors ought to mirror reporting to the
         | taxman.
         | 
         | This would be a nice simple GAAR: you pay either the current
         | corporate rate or 20% of the GAAP profits you report in your
         | stockmarket statement, whichever is the larger.
        
       | WanderPanda wrote:
       | If they don't release the raw data I suspect it will be mostly
       | about left/right wing populism
        
       | wallace01 wrote:
       | How come all the players are from anywhere but US?
        
       | maybelsyrup wrote:
       | I've wondered a lot about this with the Snowden and Wikileaks
       | stuff, and I wonder about it with this topic too: the most
       | salient part of this story, and about Panama Papers etc. before
       | it, is how small a dent it seems to make in the discourse, and in
       | the world as a result. At best, these stories get a good chunk of
       | the airwaves for a couple of weeks, and then it's on to the next
       | thing.
       | 
       | In history books, you get a sense sometimes that there were eras
       | in which stuff like this sent people into the streets in rages.
       | In which governments were voted out or overthrown, in which
       | meaningful legislative responses were made. Or, you know, riots.
       | 
       | But I look around after reading those books and wonder what makes
       | us so different. It's weird to live in this era. I read a
       | Guardian article like this and look at the staggering sums, this
       | entire "shadow financial system" devoted solely to one notion: _I
       | 'm going to take as much as I can, in whatever way that I can,
       | regardless of legality, and I'm going to give nothing back
       | because I sincerely don't believe I owe anything back -- oh, and
       | I'm going to keep it all a secret._
       | 
       | And I look around and not only don't see any riots; I sometimes
       | get the feeling that people are actually envious, sometimes even
       | respectful of the ingenuity it takes to manufacture these
       | schemes. It's tough.
       | 
       | The only silver lining I can think of is what all the secrecy
       | says: _we 're not just doing this in the open because we're still
       | afraid we'll end up like the Romanovs if too many of you get
       | angry_. I think that while they're still afraid, there's still
       | some hope.
       | 
       | EDIT: Reading some replies. It's weird to have to say this to
       | such a smart crowd, but I'm not advocating riots as such; I'm
       | advocating a substantive response. Of course riots are "bad" in
       | some sense, but my observation is really about the odd contrast
       | between the huge size of the "stimulus" (theft of wealth, much of
       | it _yours_ , on a staggering scale) and the tiny size of the
       | "response" (newspaper articles and web forum discussions),
       | especially when contrasted with other historical periods. So
       | while I wouldn't "want a riot", seeing one would make me go
       | "well, that makes sense".
        
         | SergeAx wrote:
         | The thing is, there are no ingenuious schemes. Offshore
         | companies are just a tool everybody knows about. For a wealthy
         | 1% having an offshore company is just a norm. Or several of
         | them, for that matter. And our everyday discourse is defined by
         | those 1%. Jeff Besos owns The Washington Post, for damn sake.
        
           | simonh wrote:
           | Right, we all know offshore havens exist, we all know rich
           | people and companies use them. So papers showing that these
           | rich people are using these tax havens is not exactly
           | surprising. That's not to condone this activity, it's just
           | that I'm surprised anyone thinks the response would be
           | otherwise. We know about this stuff already in general, this
           | is just specifics and as the guardian points out it's not as
           | if all this in even necessarily illegal. We just need to push
           | harder to shut down these loopholes.
        
           | [deleted]
        
         | c3534l wrote:
         | There have definitely been riots in the streets. In some parts
         | of the world, there was with the Panama papers. But there
         | weren't really many important Americans implicated in those
         | papers. Here, we decided to riot over police murdering black
         | people and the election of Trump, but it was honestly probably
         | more about being sick of living with the pandemic than anything
         | else. I think you have to be willing to riot first, then
         | something has to happen for you to react to, and then we point
         | at that event and say it caused the riots. But I think history
         | is more of a series of catalysts than a true sequence of cause-
         | and-effect.
         | 
         | Snowden changed the discourse, but it wasn't a catalyst for
         | change, unfortunately. I guess we're just not ready to change.
         | When we are, maybe we'll look back at these events as early
         | precursors that showed stress in the system before it snapped.
         | Or we'll view them like we do the Luddites: trying to reverse
         | the inevitable course of history.
         | 
         | In my experience seeing a black neighborhood errupt in protests
         | after seeing another black man killed - while I personally
         | think that black man in particular was not innocent - that
         | neighborhood was ready to riot. The police in that area were
         | brutal, abusive, and racist. The people in that area were
         | subject to segregation that saw them receive worse education
         | and job opportunities than the white neighborhoods. The
         | government was unresponsive to their needs and, on the
         | contrary, viewed them as a nuisance bringing down property
         | values, and hurting their stats on standardized test scores.
         | Then a black man was killed and they said they'd had enough of
         | this, and then everyone says "the went to the streets because
         | that man was killed" - which is both true and irrelevant. A
         | small breeze will knock down a house of cards, but the fact
         | that the house is made of cards is more important than the fact
         | that the breeze caused it to collapse.
        
         | ztjio wrote:
         | I suggest you reconsider your position about nothing happening.
         | Many people think nothing happened in response to the Panama
         | Papers and those people are all wrong.
         | 
         | https://www.icij.org/investigations/panama-papers/what-happe...
        
         | BurningFrog wrote:
         | Life for us masses has never been better.
         | 
         | Lots of crooks in power, sure, but if you know history that's
         | how it's always been. How human societies typically work like
         | that, and maybe they have to.
         | 
         | The numbers look big, but in terms of dollars per citizen, how
         | much money are we really talking about?
        
           | maybelsyrup wrote:
           | > The numbers look big, but in terms of dollars per citizen,
           | how much money are we really talking about?
           | 
           | I'm not sure what you intended with this, but it's a really
           | good empirical question. Since we have no reason to believe
           | any one of these "leaks" is exhaustive, we don't ever know
           | the true denominator, so we can't estimate dollars-per-
           | citizen with any confidence.
           | 
           | But we do know the realities of being poor. So if the true
           | dollars-per-citizen-per-year figure turns out to be as little
           | as, say a thousand dollars, I think a lot of people would be
           | justified in eyeing their pitchforks. Hell, an extra fifty
           | dollars a month in the developed world would make a massive
           | difference for millions who struggle.
           | 
           | Personally, I believe that the true number is very plausibly
           | in this range.
        
             | BurningFrog wrote:
             | > _I 'm not sure what you intended with this, but it's a
             | really good empirical question._
             | 
             | It's an honest question, and I am genuinely curious of the
             | numbers in these revelations. How much bigger the real
             | number is we can only guess.
             | 
             | > _Hell, an extra fifty dollars a month in the developed
             | world would make a massive difference for millions who
             | struggle._
             | 
             | Sure, but that assumes such a system is possible, _and_
             | that it is desirable. I 'm doubtful on both.
        
         | woile wrote:
         | I have the same feeling, like we were slowly indoctrinated into
         | believing that upvoting is the only thing we can do and
         | participation is worthless.
         | 
         | I recently watched this video[0] that shows how public
         | perception over cars has been influenced over many many years
         | into what we now have (and we now perceive as normal). I feel
         | like it's somewhat related.
         | 
         | [0]: https://www.youtube.com/watch?v=oOttvpjJvAo
        
         | eli_gottlieb wrote:
         | My current theory is that every time the masses take to the
         | streets in outrage at the corruption of the system, the so-
         | called "leadership" of the new social movement tries to divert
         | it into their own political hobbyism.
        
         | chaganated wrote:
         | take what the romans already knew about democracy, sprinkle a
         | little fluoride on it, and there's your answer. also, this is
         | not a smart crowd.
        
         | [deleted]
        
         | ricardobayes wrote:
         | There are no morals in the world anymore, we are driven by
         | money. To buy that rolex, that BMW, that beach house. These
         | things have been made accesible to more people than ever - so
         | people don't want this to change for the worse. Status quo is
         | good.
        
         | tejohnso wrote:
         | Maybe the average person is just too well off to care?
         | 
         | When you're barely getting by, or worse, have had family
         | members die of starvation, it's more offensive, and you have
         | less to lose, and so more likely that you'll take out the pitch
         | fork and hit the streets.
        
         | slim wrote:
         | In history books time is compressed and history is distilled. I
         | can tell you that revolutions are the result of small dents
         | like these that build up over years
        
         | irrational wrote:
         | I think the difference is that most of us are not starving, not
         | sleeping cold or outdoors, are receiving an education for our
         | children, are able to find some form of work, etc. Its hard to
         | get people rolled up enough under those circumstances.
        
         | stef25 wrote:
         | Personally I can't get myself worked up over this, mainly
         | because I don't think it would make a difference if these
         | people didn't do what they did.
         | 
         | Would our lives be any different if the king of Jordan had paid
         | his taxes? Would the UK be better off if Blair hadn't found a
         | way of saving a couple hundred grand off his latest real estate
         | purchase? Etc
         | 
         | Also I have no shame in admitting I'd do exactly the same if I
         | had that kind of money.
        
           | toofy wrote:
           | One of them. No. But I don't think anyone is saying that one
           | single instance would change everything.
           | 
           | If all of those who make a couple million a year who also
           | avoid their taxes were to pay them, yes.
        
         | rcMgD2BwE72F wrote:
         | >And I look around and not only don't see any riots; I
         | sometimes get the feeling that people are actually envious,
         | sometimes even respectful of the ingenuity it takes to
         | manufacture these schemes. It's tough.
         | 
         | What riots did you participate in? If none, are you among the
         | ones you assume to be envious?
        
           | misnome wrote:
           | That clearly isn't what they said.
        
         | UncleOxidant wrote:
         | I hear what you're saying, but I don't think anyone is
         | surprised anymore that the rich and powerful are manipulating
         | the financial system. There's also a sort of unreal, weird
         | aspect to these leaks. I get the feeling reading the article
         | that there's either a lot they're leaving out (possibly just
         | because it's too soon for them to have combed through all of
         | the information) or that these leaks are orchistrated in some
         | way to make certain political opponents look bad while other
         | prominent politicians remain un-named and unscathed. I just get
         | a distinct feeling that while yes, this stuff is likely quite
         | true, it's purposely not complete (not blaming The Guardian
         | here, I'm thinking the leakers are maybe leaking selectively).
         | 
         | They mention King Abdullah II of Jordan, but how likely do you
         | think it is that there could or would be any consequences for
         | him? It seems highly unlikely.
         | 
         | Also, they mention that Putin is not named directly in these
         | papers, but we can be pretty certain that he's been involved in
         | all sorts of financial skullduggery. Yes, they say that some of
         | his close associates are mentioned, but even if it can be tied
         | directly to Putin with 100% certainty it would have little to
         | no effect in removing him from power as his power over Russia
         | at this point is too strong for such allegations to have any
         | effect.
         | 
         | And Who benefits from making Zelinskiy look bad?
         | 
         | EDIT: Maybe we're not more shocked because we suspect that if
         | we knew the whole story it would actually be much worse than
         | this?
        
           | baybal2 wrote:
           | > Yes, they say that some of his close associates are
           | mentioned, but even if it can be tied directly to Putin with
           | 100% certainty it would have little to no effect in removing
           | him from power as his power over Russia at this point is too
           | strong for such allegations to have any effect.
           | 
           | Very simple, USA orders global sanctions on the guy, and we
           | will all see what next stupid thing it will provoke him into.
           | 
           | All these Magnitsky acts are silly, and useless when they
           | keep going against accessories to the criminal regime, while
           | not going against that criminal regime itself, and especially
           | the chief motherfucker in charge.
           | 
           | The few times USA has ever attempted to sanction heads of
           | states personally were few African states, Norko, and
           | Philippines
        
           | maybelsyrup wrote:
           | I think about this exact thing a lot. Of course, I have no
           | evidence for it, but it's always on my mind in a story like
           | this. It's always a certain slice of the global elite being
           | embarrassed in the stories, isn't it?
        
           | igivanov wrote:
           | >Putin is not named directly in these papers
           | 
           | yes that's absolutely damning. typical Putin /s
           | 
           | can you share more of your conclusions based on absence of
           | evidence?
        
         | kapp_in_life wrote:
         | People aren't going to riot if their lives are pretty good,
         | regardless if others are cheating the system. Bread and
         | circuses.
        
           | namdnay wrote:
           | I agree with you on the first sentence, but I don't think
           | it's necessarily bread and circuses. Just peace and
           | prosperity. Pax Capitalisma if you will
           | 
           | Bread and circuses was politicians getting into debt or
           | Emperors dilapidating the treasury to buy the support of the
           | masses, I don't think that's really the case here.
           | 
           | It's more that if people are prosperous and safe they stop
           | caring enough
        
             | salawat wrote:
             | >Bread and circuses was politicians getting into debt or
             | Emperors dilapidating the treasury to buy the support of
             | the masses, I don't think that's really the case here.
             | 
             | I would like you to think about this paragraph.
             | 
             | Now think about UBI. Now think about Modern Monetary
             | Theory.
             | 
             | I see an attempt at distinction without a difference.
        
           | whakim wrote:
           | People kind of are rioting, though. The election of Donald
           | Trump (and the rise of populist parties across Europe); the
           | January 6th capitol riot; the Black Lives Matter movement -
           | whatever you think of these things, they're all connected at
           | some level to a deep-seated feeling of social injustice.
           | Perhaps we're only at the start.
        
           | petre wrote:
           | No, they're just going to try and cheat the system because
           | 'everybody does it'. It sends the wrong message that
           | corruption is okay.
           | 
           | I like the photo of Ilham Aliyev and his wife though. He
           | looks like a villain from James Bond movie.
        
             | rcMgD2BwE72F wrote:
             | It's unsustainable, so people are waiting for the system to
             | collapse. A few will riot, some will try to accelerate the
             | collapse and benefit from it, of course, but most will wait
             | and see.
        
             | maybelsyrup wrote:
             | I had a very similar thought. Kinda funny if it weren't so
             | bleak.
        
           | dmje wrote:
           | Yeh, this is it. Soma for the masses in the form of Netflix,
           | cheap fast food, booze, legal drugs...
        
             | Igelau wrote:
             | > booze
             | 
             | YMMV, but I'm 2L deep on local beer and it's not making me
             | trust The Man yet.
        
               | salawat wrote:
               | Are you out in the streets, or looking for the truth in
               | the bottom of a bottle?
               | 
               | If it isn't the former, the plan is working technically.
        
               | xboxnolifes wrote:
               | The man doesn't care if you trust him as long as you
               | aren't getting in his way.
        
             | cto_of_antifa wrote:
             | Deep
        
         | augstein wrote:
         | Without saying this is only good or this is only bad, I
         | honestly think we have reached a level of general wealth, e.g.
         | enough to eat for everyone and enough to endlessly distract
         | everyone (TV, social media, games, etc.), that most people
         | won't really get worked up by such things anymore.
        
         | derEitel wrote:
         | I recently learned that my go-to park in Berlin, Gleisdreieck
         | Park, was supposed to become an Autobahn in the second half of
         | the last century. Protests have stopped it finally in the 90s
         | [1]. Nowadays, Berlin is enlarging the Autobahn eventually
         | leading to the removal of night clubs and nature. Why is the
         | protest so small this time?
         | 
         | [1] German only:
         | https://de.wikipedia.org/wiki/Park_am_Gleisdreieck
        
           | gerdesj wrote:
           | About 40 years ago (aged 10) I watched a hedgehog wander
           | around a grassy area near the Brandenburg Gate. If you
           | recall, that monument was part of the delineation between
           | East and West. The hedgehog was walking on a minefield. Of
           | course it was too small to set off anything but even now I
           | remember it.
           | 
           | I was a British Army brat and we were stationed in
           | Rheindahlen near MG at the time. The Berlin Corridor was
           | pretty grim. It was a long straight concrete road with barbed
           | wire fences on both sides. At the Berlin end we parked up in
           | a large concrete plaza and presented passports through a
           | metal hatch. Then we were allowed into the city. Berlin in
           | 1980. I really wish I was older and could give a better
           | impression of the place at the time but there are probably
           | plenty of writers who can do the same and far better. It
           | seemed to me at the time to be the same as any other (West)
           | German city but a bit bigger! I think we were allowed a short
           | trip to the East side via CP Charlie.
           | 
           | The Berlin I visited back then had bigger fish to fry than a
           | contentious autobahn!
        
         | Melting_Harps wrote:
         | > In history books, you get a sense sometimes that there were
         | eras in which stuff like this sent people into the streets in
         | rages. In which governments were voted out or overthrown, in
         | which meaningful legislative responses were made. Or, you know,
         | riots.
         | 
         | I think your somberness comes from an idealized, perhaps even
         | fanciful look at the Human Condition. Personally speaking riots
         | and even street demos against this are not what is needed here,
         | but rather a significant amount of Human Capital into opting
         | out of this system and creating a viable alternative.
         | 
         | Your pessimism is a symptom of a much bigger problem, not the
         | source of the illness. Once you realize that you cannot reform
         | this system you will be able to re-direct your energy toward
         | that end and maybe find solace in the fact that we still live
         | in the best time to be alive, if only because the amount of
         | possibilities.
        
         | emerongi wrote:
         | It is definitely weird. It might be the fact that the average
         | person today is so far removed from the events and their life
         | just keeps going. Why expend energy on rioting when everyday
         | life is fine? We all have a ton of other stuff to do.
         | 
         | On a sidenote, this is why I always preferred Brave New World
         | over 1984. Easier to keep the population in control by keeping
         | them satisfied.
        
           | monkeybutton wrote:
           | Every day life is fine enough, and the majority has something
           | to lose if they do act out. That threat to take what people
           | have away is what works.
        
         | tayo42 wrote:
         | A riot is just going to make my life certainly worse for the
         | slight chance of making someone else's life worse for reasons
         | that really don't effect me.
        
         | basisword wrote:
         | They've sedated us. Compared to the past you mention we live
         | long lives, work comfortable jobs, have all we can eat media at
         | our finger tips and therefore aren't all that affected by the
         | dodgy dealings of the elite. We're comfortable enough with too
         | little to gain through uprising. For any change against the
         | elite to take hold you need a large group to rise up against
         | them - and even the poorest amongst us in the west have
         | smartphones and the other trappings of a comfortable enough
         | life. Why risk losing that or facing any discomfort at all when
         | we can just get on with things and ignore the corruption?
        
           | amelius wrote:
           | https://en.wikipedia.org/wiki/Bread_and_circuses
        
           | stjohnswarts wrote:
           | what's on the other side of taking down a relatively (to the
           | past) well run democracy? Do people actually think there's a
           | utopia in anarchy? It will just be the rise of a different
           | set of elites.
        
         | acabal wrote:
         | I've said to my friends that I think America is in a strange
         | place in history, where bread and circuses have become
         | industrialized enough to truly anesthetize people's political
         | will.
         | 
         | People have Netflix, the Internet, and video games all cheap
         | and at the touch of a button; opioids, antidepressants, and
         | illicit drugs are socially acceptable and easily obtained,
         | sometimes even at a government subsidy; and almost nobody is
         | physically _starving_ or lacking rudimentary shelter (even the
         | poor in America are fed, clothed, and housed to an extent
         | almost unimaginable compared to the shattering destitution
         | experienced in most of human history).
         | 
         | This was not the case in the past, when so many more people
         | were subject to backbreaking manual farm and industrial labor,
         | the real chance of starvation, malnutrition, or outright
         | poisoning from unregulated industrialized food, cramped
         | conditions in drafty, moldy buildings, grim disease, and worst
         | of all, nothing to distract you from it all. One's free time
         | was spent thinking about how unfair it all was, not watching
         | TV. When people are stuck at the bottom of Maslow's pyramid,
         | they have nothing better to do then get mad and start rioting.
         | 
         | But as long as the bread and circuses continue to be effective,
         | the will to riot in the streets is gone. Who cares if a
         | billionaire sneaks in a second yacht on the side? I can just
         | open a bag of Doritos I bought for pennies and switch to the
         | Kardashians. The strange thing is, would we not consider this
         | positive progress?
        
           | fwip wrote:
           | A lot of people also have, arguably, less control over their
           | circumstances than ever before.
           | 
           | Many Americans are effectively wage-slaves - unable to quit
           | their jobs, because they rely on the income and have nearly
           | no savings.
           | 
           | Rent has to be paid. Food has to be bought. Car insurance,
           | taxes, dentist appointments - you can't stop making money,
           | because you can't stop paying money.
           | 
           | Moving costs an up-front investment that you don't have. Land
           | is expensive, and even if you had the skills to build your
           | own lodging, it has to be up to code.
           | 
           | Pivoting to self-employment might seem easy in the age of
           | Uber, but the reality is that it is incredibly difficult to
           | earn yourself a living without playing by somebody else's
           | rules. In the past, you could decide to earn a living as a
           | fisherman simply by fishing and selling your catch. Handy
           | with a hammer? Supplement your income on an ad-hoc basis by
           | helping out your neighbors.
           | 
           | The stress of dealing with everyday life can be so
           | overwhelming that the only thing a person has juice left for
           | at the end of the day is turning on the television, scrolling
           | twitter, and eating those Doritos. And that television (and
           | even twitter) isn't telling you any ways out of the
           | invisible, ubiquitous cycle you're stuck in.
        
           | qeternity wrote:
           | Brilliant comment, my sentiments exactly.
           | 
           | Just to add on: I also believe that this is why we see virtue
           | signaling so strongly today. The impact of one's actions is
           | quite secondary, for all the reasons you mention. So the
           | illusion of change is just another circus for the mind to
           | pass another hour.
           | 
           | I still think we live in the greatest point in time in human
           | history, but this is a super interesting and equally
           | concerning possibility.
        
           | xtracto wrote:
           | And it's not only in the USA. For the last 15 years I have
           | seen my country Mexico fall deep into violence, killings,
           | narco state, blatant corruption and abuse from the people in
           | the government.
           | 
           | And nothing happens...
           | 
           | Time and time again someone I the "high society " gets
           | killed, there are a couple of marches and everything stays
           | the same. It's as if the actual majority of the population
           | was fine living in this shithole.
           | 
           | It's so depressing.
        
         | cblconfederate wrote:
         | Bank secrecy is as old and nefarious as switzerland, the public
         | already assumes that this thing is happening and that power
         | comes with corruption (or else why would people want power).
         | For political parties to demand equal access to these tax-
         | avoidance instruments is obviously politically a non-starter.
         | The current capitalism/power complex puts everyday people on a
         | treadmill where they wish to become the ones who can one day
         | avoid taxes, rather than demand this to stop now. Therefore the
         | loopholes keep shifting arount the globe. Taxation is what
         | separates the plebs from the elites
        
         | ceilingcorner wrote:
         | I think it's because most people actually don't want to pay
         | taxes. They understand that the rich are able to go offshore
         | and are somewhat jealous of them. But people want access to
         | this, they don't want to participate in some kind of class
         | warfare against a group they want to be a part of.
        
         | rsj_hn wrote:
         | > In history books, you get a sense sometimes that there were
         | eras in which stuff like this sent people into the streets in
         | rages.
         | 
         | Read better history books. A bunch of people yelling into the
         | air is not how change is effected.
         | 
         | Really the culprit here is the French revolution, back when
         | things were physically rooted so if you could storm the palace
         | and burn your debt the debt would really be gone. All the
         | French organs of power were located in this city filled with
         | seething people. But that is not the world we live in today. If
         | you storm the whitehouse, you just trespassed on a famous
         | building, you haven't captured the center of power. If you tear
         | down a statue, you just lose popular support, you are not
         | overthrowing anything by attacking the physical statue.
         | 
         | Power is not in buildings and it's not obtained by yelling.
         | 
         | Moreover the resentment of incredibly privileged people
         | complaining that they are not as privileged as someone else is
         | not how you gain popular support.
         | 
         | Yes, envy is still a powerful motivator, but the achillees heel
         | of envy is that it's hard to unify a group of people who are
         | driven by resentment. They constantly turn on each other. It's
         | a very tricky thing, and if you are a would-be Napoleon, then
         | shouting at birds isn't how you convert envy into a stepping
         | stone for power.
        
         | dragonwriter wrote:
         | > In history books, you get a sense sometimes that there were
         | eras in which stuff like this sent people into the streets in
         | rages. In which governments were voted out or overthrown, in
         | which meaningful legislative responses were made. Or, you know,
         | riots.
         | 
         | We've had people in the streets in rage, riots, and legislative
         | responses to lots of things recently, though not the things
         | that tend to animate the upper-middle class tech-libertarian
         | crowd, which is out of touch with the day-to-day concerns
         | of...pretty much everyone else.
         | 
         | Whether those responses will be _meaningful_ is disputed in the
         | moment and will only be clear with historical distance.
        
         | quijoteuniv wrote:
         | The really great victory of the rich is that they convinced
         | half of the planet to defend them.
        
         | jerf wrote:
         | "At best, these stories get a good chunk of the airwaves for a
         | couple of weeks, and then it's on to the next thing."
         | 
         | This is the true power of the media. It isn't whatever lies or
         | truths they may tell, though those are impactful in their own
         | way... it is the way they decide what we think about at all.
         | The true power of the media is to inflate some tiny incident
         | that happened to one person to a national-scale, multi-week
         | crisis... and to be able to take national-scale, multi-decade
         | crises and bury them to the point that it's right down there
         | with "conspiracy theories" to think about them.
         | 
         | If you pay attention, you can see this sometimes in action.
         | They'll push a story expecting a certain reaction, but if they
         | don't get the reaction they expect, _poof_ , it's gone. There's
         | always a huge pool of stories to draw from, far larger than
         | they need to send any message they want without having to
         | necessarily _lie_ at any point. They just have to control the
         | spotlight of attention to get the results they want.
         | 
         | Sometimes HN denizens talk about breaking out of the filter
         | bubble. This might be a better way of thinking about it...
         | instead think of it as breaking away from the attention
         | spotlight being pushed on you by the media. Almost the entire
         | world is taking place outside that spotlight.
        
           | TrispusAttucks wrote:
           | I used to have so much faith (naively perhaps) in the major
           | news networks. Maybe they used to be bastions of truth but I
           | feel that is not the case. They are just a mouth piece of the
           | elites at this point.
           | 
           | They have us divided and fighting each other so we're too
           | busy to see the real cause of our discontent.
           | 
           | So much truth has been censored and replaced with lies in the
           | last 2 years. But no one is calling them on it? There isn't
           | even an apology or a retraction.
           | 
           | It's not news.
           | 
           | It's propaganda.
        
             | zxcvbn4038 wrote:
             | Real news is expensive, that is why so much of the news has
             | turned into opinion pieces - it costs almost nothing to
             | publish people's opinions but it grabs eyeballs for
             | advertisers just as well as real news.
             | 
             | When it's not opinion pieces they are usually promoting
             | someone's book or hyping up some Lifetime special.
             | 
             | Even before reporting really started circling the drain I
             | always noted how wrong the news got technology stories, and
             | I wondered if all the other topics were just as off.
        
               | TrispusAttucks wrote:
               | Yep, and the opinion pieces are just advertisements in
               | disguise. So who are the advertisers paying for the
               | content. They don't care about truth. It's just about
               | profit or control.
        
               | OnlineGladiator wrote:
               | > Even before reporting really started circling the drain
               | I always noted how wrong the news got technology stories,
               | and I wondered if all the other topics were just as off.
               | 
               | https://www.epsilontheory.com/gell-mann-amnesia/
        
           | derefr wrote:
           | The media needs _something engaging happening_ to have
           | something to continue to report on. (Even if that thing is
           | just public figures reacting to a thing.) If they lob a
           | bombshell and see it explode, but there are no further
           | consequences to that explosion -- no "sequelae", as the
           | medical profession would put it -- then they can't very well
           | continue to report on the explosion.
           | 
           | What makes further consequences happen? Powerful people
           | taking an interest. The media is the fourth estate, but only
           | insofar as their actions trigger reactions in the first-
           | through-third estates. For a news story to "continue to
           | happen", it needs a _patron_ in a position of power to
           | actually care about what was reported, and act in response,
           | in a media-visible way. News coverage is, and always has
           | been, a feedback loop between journalists and the public
           | figures they cover.
           | 
           | Which implies that if something is a "taken as a given"
           | practice among pretty much everyone with power, then
           | reporting on it won't get any powerful patron riled up, and
           | so won't get anything done to feed back into the news cycle.
           | 
           | Democracy continues to function, separately from all this;
           | voters read the news, get angry, and pressure their
           | congressman, who then pushes for change in the house, causing
           | ripples in the bureaucracy. But none of that is able to be
           | framed in an incendiary "continuing coverage" format, because
           | there is no heroic narrative to democracy, only the snowball
           | effect of small actions -- so the regular news media doesn't
           | attach to it at all, so it seems to just drop off the face of
           | the Earth.
           | 
           | But it's still happening; it's just happening in a way you
           | can only perceive with "I watch C-SPAN" glasses on.
        
         | leppr wrote:
         | "Representative democracies" train people to be apathetic.
         | 
         | Since birth they are made to believe that the miraculous
         | democratic republic they live in gives them agency, and that
         | the reason they actually don't have agency is because their
         | fellow citizens are stupid and can't vote for the right things.
         | 
         | The result is a feeling of justified helplessness. There's no
         | feeling of outrage at the greedy tyrannical ruling class,
         | because after all either you or your neighors "chose" them.
         | 
         | And if taxation laws are unjust, it's your neighbors' fault.
         | They voted for _red_ while _blue_ would obviously have your
         | best interests in mind. Nevermind the fact that both _red_ and
         | _blue_ are part of the same wealth and social class, who
         | benefit from the same laws.
        
           | aero142 wrote:
           | Democracy is very successful in preventing political
           | violence. Violence is incredibly destructive to people's real
           | daily welfare.
        
             | breakfastduck wrote:
             | It's also incredibly successful in destroying social
             | mobility, causing people to be stuck in ever-increasing
             | levels of poverty - which is pretty destructive to peoples
             | welfare too.
             | 
             | Not to mention it prevents political violence at the
             | expense of causing extreme violence in foreign nations. As
             | long as its not us, right?
             | 
             | I would say with this that unfortunately democracy =
             | capitalism in the world we live in. And its really
             | capitalism that causes those things, rather than democracy
             | itself. I dont want to give the impression I hate democracy
             | as an idea, just how we've implemented it.
        
               | geysersam wrote:
               | > It's also incredibly successful in destroying social
               | mobility.
               | 
               | I find it difficult to agree with this sentiment. Social
               | mobility might have decreased in the last four decades.
               | But in the longer perspective there has never been a more
               | egalitarian and meritocratic social structure than in our
               | time. And that structure exists mainly in the democratic
               | states of the world.
        
               | nichohel wrote:
               | The idea that there are "ever-increasing levels of
               | poverty" in western democracies is transparently false.
               | Would you like to try to provide some evidence for that?
        
           | dragonwriter wrote:
           | > "Representative democracies" train people to be apathetic.
           | 
           | Is there any evidence that there is any system of government
           | that does so _less_?
        
           | jimkleiber wrote:
           | So what's better?
        
             | leppr wrote:
             | Personally I think Democracy could be nice. I think there
             | are systems of governance that can allow everyone to have
             | agency on their life without necessarily having to be rich
             | enough to passport-shop.
             | 
             | Calling our democratic Republics simply "Democracy" is
             | another cool helplessness-inducing newspeak trick. That
             | language implicitly positions the system on the extreme-end
             | of citizen-agency, so logically everything else must be
             | more authoritarian.
             | 
             | In fact, assuming you live in one of these so-called
             | "Democracies", think about how much your country's laws and
             | policies impact you, and then think how much effort and
             | input you provide to deciding those laws and policies. The
             | ratio is most likely ridiculous.
             | 
             | We always say "direct democracy doesn't work because people
             | don't care about every issue", but there's an universe of
             | possibilities between Democratic Republic ("chose between
             | red and blue every five years") and simplistic direct
             | democracy ("country-wide majority vote on every government
             | decision").
        
               | jimkleiber wrote:
               | I'm open for alternatives and improvements on what we
               | currently have. I still don't feel very clear after
               | reading what you just wrote. I don't think the US has a
               | pure representative democracy (citizens vote directly on
               | many issues) and I also don't think representative
               | democracy inherently leads to a binary red/blue decision,
               | as I think number of political parties is often
               | determined by the particular rules of the election
               | process.
               | 
               | Do you have any suggestions on how to improve the system?
        
         | tw04 wrote:
         | > In history books, you get a sense sometimes that there were
         | eras in which stuff like this sent people into the streets in
         | rages.
         | 
         | Not always, but generally that only happens when enough people
         | can't feed their kids. We're still too comfortable to risk it
         | all. There's also the issue of mass surveillance which can kill
         | an uprising in the cradle.
        
         | JohnJamesRambo wrote:
         | We have plenty of food and tv to watch and our phones to look
         | at. Complacency is so high. Someone that is hungry and bored
         | finds taking to the streets for a riot compelling because they
         | have nothing to lose.
         | 
         | I find this complacency we have bizarre because the average
         | working poor person seems pretty miserable looking at their
         | phone and eating fast food. The Panama Papers could offer clues
         | for why they work so hard and never seem to have a single penny
         | at the end of each month after the bills are paid. But the Big
         | Mac and the Juul Pod and their Facebook feed makes them too
         | tired right now to care...there's a new show on Netflix a
         | friend told them about and maybe that will make them happy for
         | a few hours.
        
           | carlhjerpe wrote:
           | One thing I'm curious about is if billionaire money is
           | actually worth the same as our money, it seems like a sink.
           | Once enough money is in the same place, moving it causes
           | impacts that could devalue it. I mean you can buy cool
           | boats(ships) and never lift a finger again in your life, but
           | it's not actually usable on the scale we think right?
        
             | sjtindell wrote:
             | It definitely is. Jho Lo is a great example of this. He
             | burned through billions, with a capital B, in only a few
             | years time. Boats, houses, financing film projects (The
             | Wolf of Wall Street, you can't make this up), gambling
             | millions of dollars at a time on single hands of blackjack.
             | A member of his entourage abandoned the life because he
             | couldn't emotionally handle watching Lo spend more on
             | bottle service at the clubs in a single night than his
             | entire extended family would ever earn in their lives. I
             | think most rich people are just relatively staid in their
             | spending, despite the multi million dollar homes and all
             | that.
        
             | Igelau wrote:
             | That's why you move it in weird ways. Like fine art and
             | crypto.
        
             | reedjosh wrote:
             | That's what charitable foundations/trusts are about.
        
           | gdubya wrote:
           | "it ain't great, but it could be a lot worse..."
        
         | pjc50 wrote:
         | > how small a dent it seems to make in the discourse
         | 
         | "The discourse" is increasingly unglued from any kind of ground
         | truths. The pandemic has just made that far more obvious. It's
         | just people refighting the same wars.
         | 
         | > Or, you know, riots.
         | 
         | The US had a huge number of riots over the last year, and
         | violent (but as yet unarmed) protestors stormed the federal and
         | some state capitols. (There was also _armed but not violent_
         | protest, https://www.bbc.co.uk/news/world-us-canada-52496514)
         | Several cities briefly had "autonomous zones" and at least one
         | police station burned down.
        
           | leppr wrote:
           | Yes, and none of these riots were about anything related to
           | the economy.
           | 
           | In fact, it's precisely during this time that the Feds were
           | hitting the printing press the hardest, directly increasing
           | wealth inequality and thus, the US Black population being on
           | average way poorer[1] and poverty indirectly being the number
           | one cause of death, lowering US Black citizens' life
           | expectancy more than US White citizens.
           | 
           | And yet 0 riots or public outcry about that, while countless
           | more Black people will die because of these policies than the
           | few who die of police brutality.
           | 
           | [1]: https://www.brookings.edu/blog/up-front/2020/12/08/the-
           | black...
           | 
           |  _> In 2019 the median white household held $188,200 in
           | wealth--7.8 times that of the typical Black household
           | ($24,100)_
        
         | SamoyedFurFluff wrote:
         | Very few times does a riot legitimately change anything, even
         | in response to great corruption. It's precisely why such times
         | are historically noted. Things like civil rights, the end of
         | slavery in America, gay marriage, and women's right to vote in
         | America were all from _decades and decades_ of bureaucratic
         | labor.
        
         | C19is20 wrote:
         | Well, just fancy having to even explain yourself with an "EDIT:
         | Reading some replies....."
        
         | playpause wrote:
         | > "how small a dent it seems to make in the discourse, and in
         | the world as a result"
         | 
         | I used to think this. But now I think: maybe the 'dent' I've
         | been looking for is essentially just excitement and hype, which
         | isn't change. The narrative that change happens through the
         | mass public getting angry, forcing politicians to respond, is
         | overblown at best. I think the boring truth is that nearly all
         | progress in this area (and there is progress) happens through
         | countless bureaucrats diligently working for years on court
         | cases and regulation changes to make it harder for people to
         | get away with this stuff. For such bureaucrats, a leak like
         | this is going to be relevant and valuable for years, long after
         | the media has moved on. The people implicated in the leak
         | didn't want the leak to happen, and there's a reason. Sure,
         | most are probably too powerful to get prosecuted and put in
         | jail, but it does curb their options for future shenanigans,
         | and they will probably lose some money. Sanctions do work. I
         | think it's probably always been this way too - the exciting,
         | romantic parts of history (marches, revolutions) are the
         | exception, we just pay more attention to them.
        
           | duckmysick wrote:
           | In a way, it reminds me of the aviation industry, where
           | regulations are put in place because something happened in
           | the past.
           | 
           | At the same time, as regulation gets more complex, it creates
           | new ways to be exploited. The same way more source code means
           | more possibilities for bugs. The bureaucrats play a catch-up
           | game and they are always at a disadvantage.
        
           | maybelsyrup wrote:
           | I like this in outline -- the notion that what you could call
           | the "acute" effects (e.g. its impact on the news cycle) of a
           | story like this may be more visible and less important than
           | its "chronic" effects inside institutions, where people take
           | more serious notice. (That's if I'm reading you right.)
           | 
           | I guess what I'm less sure about is the inevitability that
           | you're painting it with. Seems a bit "whiggish" [1], in my
           | reading, if for no other reason than seeing brighter days on
           | this front in the past than in the present and immediate
           | future.
           | 
           | [1] https://en.wikipedia.org/wiki/Whig_history
        
           | freebuju wrote:
           | > The narrative that change happens through the mass public
           | getting angry, forcing politicians to respond, is overblown
           | at best.
           | 
           | It used to work. As recent as a couple decades ago at least.
           | The Arab spring that swept Middle East and parts of North
           | Africa in 2010s comes to mind.
           | 
           | Protesting and going to the streets, depending on where you
           | are in this world, feels more like a dying art today rather
           | than the stuff of revolution we've associated them with in
           | the past. Feels wrong just typing that.
           | 
           | Maybe we've just become insensitive to it all and do not have
           | the will to fight governments.
           | 
           | Maybe our collective thoughts and ideas are more homogenous
           | than ever before.
        
             | foobarian wrote:
             | It's very simple - we are well fed.
        
               | PeterisP wrote:
               | As the Romans said, "panem et circenses"; nowadays in the
               | first world, even the relatively poor classes have access
               | to a plenty of cheap entertainment and food; it's perhaps
               | not _good_ but it 's enough to take off enough of the
               | edge that people are merely angry but not so desperate
               | (for the masses - individual exceptions of course happen,
               | but they don't matter) to actually go ahead and risk
               | their lives trying to change everything.
        
               | chitowneats wrote:
               | This is my thought as well. We've reached a plateau where
               | the average individual's circumstances are so comfortable
               | that violent political action just doesn't make sense
               | psychologically. The pie is so large that, even though we
               | are getting a smaller and smaller slice compared to the
               | elites, it doesn't trigger the type of primal response it
               | did in the past.
               | 
               | Should we hope this continues? Probably. If the situation
               | deteriorates to the point that revolution becomes
               | palatable the result would be mass human suffering.
        
             | munk-a wrote:
             | As someone born in the eighties I'd mention that it has
             | actually gotten less unthinkable that mass riots happen in
             | the western world as I've grown up. If everyone's reaction
             | to January 6th surprised you it's because when most of the
             | middle-aged working folks (including the folks in the
             | media) were growing up this was unthinkable. The Arab
             | Spring happened "over there" and ditto for North Africa -
             | it's only recently that we've had substantive protests
             | domestically.
             | 
             | The WTO always brings a decent sized chunk of protest when
             | it comes - but the biggest protest in my memory is Occupy
             | Wall Street which ended up being incredibly peaceful and
             | polite and thus absolutely ignored by the media. The
             | largest one before that was probably the '92 LA Riots which
             | I was born just late enough to not notice.
             | 
             | Most of the more media grabbing protests of my life time
             | have actually been sports related - the Red Sox winning and
             | the Stanley Cup Riot. I don't know how true your statement
             | really is.
        
             | notsureaboutpg wrote:
             | The Arab Spring was an enormous failure though. It brought
             | about the first ever democratically elected leader in Egypt
             | and he died in prison earlier this year under the military
             | govt that overthrew democracy. This is pretty much the case
             | everywhere the Arab Spring was a thing.
        
             | throw63738 wrote:
             | It is not dying art. Protests are now part of
             | establishment, and are protected by police!
        
               | chitowneats wrote:
               | The revolution will be sponsored.
        
               | munk-a wrote:
               | Obligatory Kendall Jenner Pepsi ad reference.
        
         | newbie789 wrote:
         | > I sometimes get the feeling that people are actually envious,
         | sometimes even respectful of the ingenuity it takes to
         | manufacture these schemes.
         | 
         | I think this is an accurate assessment (at least for the US).
         | One of the only logical reasons as to why we as a society allow
         | this is that there are enough individuals that aspire to _be_
         | these insanely wealthy folks that we make sure that these
         | scenarios remain possible.
         | 
         | Ironically, robbing your country and hiding your cash has
         | become _the_ American dream. For example, if I were to say:
         | 
         | "Aspiring to be like Elon Musk is genuinely the most pathetic
         | way to spend a human life imaginable.
         | 
         | His fortune is built on apartheid and all of the torture and
         | death it entails. Yes, Elon Musk and his family should rightly
         | be judged morally as being active participants in the system
         | that tortured and murdered countless black Africans. The fact
         | that his family (and the money that they extracted from South
         | Africans) left South Africa as soon as segregation started to
         | wane is indicative of this.
         | 
         | He isn't some sort of hero or genius, or even supervillain.
         | He's just managed to become what nerds masturbate to when they
         | picture their (nonexistent) futures.
         | 
         | Finally, the wealth that he holds is only his because of his
         | staff figuring out how to avoid paying for your roads,
         | hospitals, schools, parks, research etc. He is only rich
         | _because_ you are not. To want to be like Elon Musk is like
         | wanting to be a tumor attached to a nearly-dead host."
         | 
         | Here's what will happen, because this is the internet:
         | 
         | People with <0.00000001% of his net worth will jump in with one
         | of a small handful of responses:
         | 
         | (These are all paraphrased but you never know, some might be
         | verbatim)
         | 
         | 1. I bet he actually does pay fair taxes...
         | 
         | 2. Actually, I think his family didn't profit from apartheid
         | because...
         | 
         | 3. Because you've used emotionally charged language in this
         | post, I'm going to treat everything written here as patently
         | false. While my decision to ignore what you've said is entirely
         | based on my emotions, it is your fault for not being nice
         | enough to me/Elon.
         | 
         | 4. Fuck you. You owe him respect because [insert business here]
         | has or will save the world someday, or not. It's up to him. And
         | while I'm not advocating for being afraid of him, in the back
         | of my mind I get anxious about him being displeased every time
         | I see him criticized and the best way to assuage that anxiety
         | is to dunk on a stranger.
         | 
         | 5. I don't think we should use Elon as an example here because
         | he's such an easy target. The fact that he has so many "haters"
         | is, to me, proof positive that he's a saint. In fact, since
         | criticizing him makes you a hater and everything haters say is
         | False (as in the Boolean value), no criticism of him is True.
         | 
         | 6. Any combination of the above + "I am/know somebody who is a
         | Tesla shareholder, therefore it's good"
         | 
         | While it might seem that I've meandered away from the topic at
         | hand, I haven't. The weird impulse to defend the uber-wealthy
         | is precisely why we allow billionaires to run amok.
        
         | bigodbiel wrote:
         | Look no further than Australia. Life is good. That is all.
        
         | mschuster91 wrote:
         | > In history books, you get a sense sometimes that there were
         | eras in which stuff like this sent people into the streets in
         | rages. In which governments were voted out or overthrown, in
         | which meaningful legislative responses were made. Or, you know,
         | riots.
         | 
         | > But I look around after reading those books and wonder what
         | makes us so different.
         | 
         | Quality of life improvements. Basically, ye olde historical
         | riots yielded _immediate_ and _noticeable_ improvements for the
         | people: rollbacks of food prices (there were a couple of riots
         | over beer price hikes!), shorter workdays, work-free days,
         | workplace safety measures, the likes.
         | 
         | In modern days, outside of affordability of healthcare, systems
         | are so ossified that even a violent revolution won't make much
         | actual change. Just look at BLM - decades of peaceful and
         | finally violent protests and yet, nothing much has materially
         | changed as a result. So why should someone take part in a riot
         | and risk arrest when there is no hope of stuff changing for the
         | better?
         | 
         | Another big factor is decades of anti-union brainwashing. Hard
         | to organize a mass protest when anything even remotely tied to
         | collective organization got branded as communist/anti-patriotic
         | and thus as "bad, avoid it" and that was indoctrinated from
         | school age onwards.
        
         | vlunkr wrote:
         | It sounds real condescending to say "it's weird to have to say
         | this to such a smart crowd."
        
         | jdavis703 wrote:
         | The wealthy hiding their wealth doesn't matter until we have a
         | wealth tax. The current system is based on income, sales and a
         | little bit of property taxes (which is hard to hide.)
        
         | james_burden wrote:
         | 1. That amount of wealth is highly abstract and hard to get
         | worked up about. 2. It's not blasting you in the face every day
         | on twitter/facebook. 3. The useful idiot class (most peeps that
         | respond on sites like this) always just talk about OmG WhY DoNt
         | OthEr PeoPle Do StUfF???!?!?!
        
         | stakkur wrote:
         | To paraphrase Seneca--the world has always been this way. This
         | is not 'new information', and I'd say a meaningful portion of
         | humans know this. The question is--so what? There is power, and
         | manipulation of it. You are not in control of it. You are in
         | control of what you do, though.
         | 
         | And as some in this 'smart crowd' will tell you, large and
         | amoral tech corporations are a key reason we have much of the
         | artificial wealth and technocratic elitism we enjoy and speak
         | from.
        
         | panta wrote:
         | In "Amusing Ourselves to Death" Neil Postman hypotesizes that
         | people are increasingly anesthetized by their addiction to
         | amusement, as pushed in increasing amounts, and duller form, by
         | the media. Now there are only armchair riots, our pitchforks
         | are the virtual keyboards on our mobiles.
        
         | throwmeawsoftly wrote:
         | Change happens when the necessary force is applied. Sometimes
         | this takes the form of violence, other times of pressure of
         | some other lever of whatever system is in place, in any case it
         | requires people investing in it. Now, the notion of people
         | "fighting for what's right" is romantic at best. People invest
         | (read: act, put in time / opportunity-cost, resources, take
         | risks, etc.) with the same rationales of any investment: is it
         | worth to them specifically in terms of costs/risks/success-
         | likelihood/payoff? When it comes to these things, the answer is
         | just "no" for too many so that the critical mass required is
         | not reached. We are at a point when most people in first world
         | countries are just either comfortable enough or think have too
         | much too lose (or both) that it takes stuff seriously
         | threatening their way of life at scale to trigger any reaction
         | with a relevant chance of real impact. As long as the bad stuff
         | is either very-bad-just-for-some or not-bad-enough, basically
         | we'll see people (and lobbies, and companies, etc.) get away
         | with anything.
        
         | nobrains wrote:
         | Depends on what the people do with it. In Pakistan, the ruling
         | prime minister was deposed due the investigations initiated by
         | the panama papers, and the new prime minister who came in after
         | him, stuck to his anti-corruption narrative by getting rid of
         | people in his cabinet who were proven corrupt.
        
       | TheChaplain wrote:
       | I don't mind people being filthy rich, but I'd rather see that
       | they invest in their country instead of moving them off-shore.
       | 
       | If I had such level of riches I'd invest in stocks, companies,
       | research, properties etc.. I'm certain it would open more job
       | opportunities.
        
         | Hokusai wrote:
         | > I don't mind people being filthy rich
         | 
         | You do not like that they move money offshore, and that is for
         | a good reason, the super rich have so much resources that they
         | can unilaterally distort the economy. The more concentrated the
         | wealth the more fragile is the economy and the more is
         | dependent on the mood of a few lucky people.
        
           | helloguillecl wrote:
           | The resources actually _don 't_ go anywhere. You can have
           | deposits and investment in many countries owned by these
           | shell companies.
           | 
           | There are mostly used to conceal the actual owner of those
           | assets, if nothing else.
        
         | 8ytecoder wrote:
         | They usually do. Even money parked in remote islands in
         | companies end up as investment in their home countries. Except
         | now with another layer to hide their identity and ability to
         | dodge taxes.
        
         | ur-whale wrote:
         | > they invest in their country
         | 
         | Why?
         | 
         | Their country might be a terrible place to invest in.
         | 
         | Also: define what "their country" actually means.
         | 
         | I think a much better take on this would be "I'd rather they
         | invest their money in productive endeavors, that benefit
         | society and/or humanity in general".
         | 
         | On other words, I agree with your general sentiment (the money
         | should be put to good use), but find the "their country" part
         | completely weird.
        
         | gremIin wrote:
         | Why would they? In our global world, there is very little tying
         | the rich to the countries they amassed their wealth in.
        
       | wallace01 wrote:
       | how come all the players in the pandora papers are from any
       | country but the US?
        
         | ur-whale wrote:
         | An excellent question.
        
       | esarbe wrote:
       | This is so annoying.
       | 
       | These people got rich by living in a society that gives them
       | language, concepts, ideas, a rich foundation of knowledge to draw
       | from, social stability. All this requires a social contract whose
       | benefits they are willing to reap but whose costs they are quick
       | to discard.
       | 
       | I think the German constitution hat something the lines of
       | "Eigentum verplichtet", roughly translated "property obliges".
       | 
       | It's really a shame that these gentlepeople that benefited so
       | much from a stable society are willing to go to such lengths to
       | keep society from their fair share. And that they don't even have
       | any immediate need for the wealth their are hiding is all the
       | more frustrating. This is all done for the sake of a bigger
       | number on a virtual accounting sheet, not because it is required
       | to create anything of value.
       | 
       | This money could instead to productive purposes; education,
       | rehabilitation and reintegration of criminals, child care,
       | rewilding of abandoned industrial wasteland, the list goes on an
       | on and on.
       | 
       | Instead it's hidden in the most convoluted financial constructs,
       | all the while benefiting people - lawyers and banker and yes,
       | also software engineers, I know because I've earned my pound of
       | flesh - that themselves have ambitions to 'become rich', as if
       | that were of any use in itself.
       | 
       | It would be only half as enraging if ordinary people that are
       | barely able to just scrape by on a full time job were in a
       | position to make use of such shenanigans. I guess that would
       | almost make it 'fair'. But as it is, "tool" like these allow for
       | superwealthy people to have a lower tax range than your regular
       | car mechanic or plumber or service employee.
       | 
       | And this just breaks it for me.
        
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