U.S. opens investigation related to massive leak of documents
The release of the Panama Papers has sparked outrage across the world, including the resignations of the prime minister of Iceland and Spain’s industry minister following revelations about their offshore tax arrangements. Now, the U.S. Department of Justice is getting involved.
The Department of Justice has launched a criminal investigation into the widespread international tax avoidance schemes exposed by the Panama Papers leak. The U.S. attorney for Manhattan, Preet Bharara, has stated that he has opened a criminal investigation regarding matters to which the Panama Papers are relevant.
Bharara has written to the International Consortium of Investigative Journalists (ICIJ), which coordinated the unprecedented leak of 11.5m files from offshore law firm Mossack Fonseca, to ask for further information to assist with his criminal investigation. Bharara has led several crusades against criminal wrongdoing in the financial sector, and is already investigating several of the more than 200 US citizens named in the Panama Papers.
Even President Obama has spoken up in regards to the Panama Papers. He was quoted as saying that “there is no doubt that the problem of global tax avoidance generally is a huge problem.
The Panama Papers have brought to light the huge problem of people using offshore accounts to avoid paying taxes. While it is legal to have offshore accounts and holdings, the U.S. requires that these accounts be reported, and that any applicable tax is paid. If you have any offshore holdings, it would be wise to insure that you all making all of the necessary filing requirements.
Freeman Tax Law specializes in all offshore taxation and reporting matters. We can help answer any questions you may have regarding your financial situation.