Paradise Papers have created a global stir since they have been highlighted on Sunday in media. The papers allege tax avoidance of some elites from Bollywood actor Amitabh Bachchan to Britain’s Queen Elizabeth II.
Paradise papers come after 1.5 years of Panama leak and hold information of 13.4 million documents in 1.4 terabytes (TB) of data from a firm Appleby.
About Appleby:
Appleby is a Bermuda-based law firm, that provides offshore legal services. The firm helps its clients to take advantage of countries with low or zero-tax rates.
The document files contain details of the tax affairs of some of the richest people and corporations around the world, quotes Hindustan Times.
Also Read: Paradise Papers: Big B, BJP’s Jayant Sinha in the list of 714 Indians for tax evasion
According to The New York Times, Appleby “helps clients reduce their tax burden; obscure their ownership of assets like companies, private aircraft, real estate and yachts; and set up huge offshore trusts that in some cases hold billions of dollars.”
About the leak:
A German newspaper Sueddeutsche Zeitung was informed by a source about Paradise papers, however, the source was not revealed. The newspaper then shared the files with the ICIJ, which has members around the world.
Difference between tax avoidance and tax evasion?
Tax evasion is an offence and includes using illegal methods to avoid paying taxes or to pay a lower amount. While tax avoidance is the term used for firms and individuals, who use legal ways to avoid or reduce the taxes.