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About East Oregonian : E.O. (Pendleton, OR) 1888-current | View Entire Issue (April 5, 2016)
NATION/WORLD Tuesday, April 5, 2016 East Oregonian Page 9A Leaked data exposes international tax evasion scheme Associated Press FRANKFURT, Germany (AP) — A leak of 11.5 million documents from a Panama-based laZ ¿rm offers a glimpse into tKe sKadoZy Zorld ZKere tKe ricK and poZerful Kide tKeir money, raising sKarp Tuestions about tKe use of sKell companies tKat obscure tKe identities of tKeir true oZners. /eaders of tKe Group of 20 — representing about 0 percent of tKe global economy — KaYe YoZed to crack doZn on tKe practice, ZKicK is blamed for Kelping conceal money laundering, corruption and tax eYasion. %y tKemselYes, sKell companies aren¶t illegal. &ountries KaYe tigKt- ened rules on using tKem — but not enougK to satisfy anti-corruption actiYists. News organizations working witK tKe :asKington-based ,nterna- tional &onsortium of ,nYestigatiYe -ournalists KaYe been processing tKe legal records from tKe 0ossack Fonseca law ¿rm tKat were ¿rst leaked to tKe Sueddeutsche Zeitung newspaper based in 0unicK, Germany. ,n reports tKat began 6unday, tKey said tKe document dump tKat tKey dubbed tKe ³Panama Papers´ sKows tKe Kidden offsKore assets of politicians, businesses and celebri- ties, including 12 current or former Keads of state. Among tKe countries witK past or present political ¿gures named in tKe reports are ,celand, Ukraine, Pakistan, 6audi Arabia, Russia and Argentina. TKe law ¿rm said in a statement it obserYed all laws and interna- tional standards coYering corporate registrations. Ramon Fonseca, a co-founder of 0ossack Fonseca — one of tKe world¶s largest creators of sKell companies — con¿rmed to Pana- ma¶s &Kannel 2 tKat documents inYestigated by tKe ,&,- were autKentic and Kad been obtained illegally by Kackers. %ut Ke said most people identi- ¿ed in tKe reports were not Kis ¿rm¶s direct clients but were accounts set up by intermediaries. One of tKe most prominent subMects of tKe report is Russian President 9ladimir Putin, altKougK Kis name does not appear in tKe documents. ,&,- said on its website tKat tKe documents sKow Kow complex offsKore ¿nancial deals cKanneled as mucK as 2 billion to a network of people linked to Putin. One focus was 6ergei Roldugin, a professional cellist and cKildKood friend of Putin. Roldugen was listed as tKe owner of companies tKat obtained payments from otKer companies wortK tens of millions of dollars, and of a stake in Bank Rossiya, described by tKe U.6. Trea- sury as ³designated for proYiding material support to goYernment of¿cials.´ ³TKe eYidence in tKe ¿les suggests Roldugin is acting as a front man for a network of Putin loyalists — and perKaps for Putin Kimself,´ tKe consortium said. AP Photo/Brynjar Gunnarsson ABOVE: People gather to demonstrate against Iceland’s prime minister in Reykjavik on Monday. LEFT: Iceland’s Prime Minister Sigmundur David Gunnlaugs- son, speaks during a parlia- mentary session in Reykjavik on Monday. The prime minister insisted he would not resign af- ter leaked documents allegedly link him to an offshore compa- ny that could represent a seri- ous conflict of interest, accord- ing to information leaked from a Panamanian law firm at the center of an international tax evasion scheme. Roldugin was unaYailable for comment 0onday. A receptionist at tKe 6t. Petersburg +ouse of 0usic, wKere Ke is artistic director, said Ke was not in. Kremlin spokesman Dmitry PeskoY claimed Putin was tKe ³main target´ of tKe inYestigation, wKicK Ke suggested was tKe result of ³PutinopKobia´ and aimed at smearing Russia in a parliamentary election year. +e suggested tKe ,&,- Kad ties to tKe U.6. goYernment. TKe ,&,- is part of tKe nonpro¿t, non-partisan &enter for Public ,ntegrity, and neitKer takes U.6. goYernment funding, said Peter Bale, &P,¶s cKief executiYe. PeskoY said Ke would not go into tKe details of allegations tKat Putin¶s friends ran an offsKore scKeme, ³mainly because tKere is notKing concrete and notKing new about Putin, and a lack of details.´ PeskoY, wKo Kad warned last week of an upcoming ³information attack´ on Putin, said Ke expected more reports to follow. ,n Russia, wKere tKe inYestiga- tion was publisKed by tKe indepen- dent newspaper Novaya Gazeta, tKe scandal initially faced an effectiYe coYerage ban. Following Kours of silence, state-owned &Kannel One reported tKe story, leading witK PeskoY¶s denial and mentioning dealings inYolYing Ukrainian Pres- ident Petro PorosKenko. TKe T9 report said tKe leak may KaYe been a U.6.-orcKestrated attempt to remoYe Panama as a tax KaYen since it is competing for tax reYenue. TKe U.6. -ustice Department was reYiewing tKe leak for eYidence of possible criminal wrongdoing tKat migKt KaYe a link to tKe United 6tates or to its ¿nancial system but could not comment on speci¿c documents, said spokesman Peter &arr. ,t¶s not clear Kow many Amer- icans KaYe been identi¿ed in tKe documents, but tKousands of Euro- peans KaYe been named, according to local journalists. Australia¶s Tax Of¿ce said 0onday it was inYestigating more tKan 00 wealtKy people for possible tax eYasion linked to tKeir alleged dealings witK 0ossack Fonseca. TKe agency said it Kad linked more tKan 120 of tKose people to an offsKore serYices proYider in +ong Kong, but did not identify tKe company. Anti-corruption adYocates say legal standards on sKell companies KaYe improYed in some countries but are not tougK enougK. TKe G-20 leaders adopted 14 principles in NoYember 2014 at a summit in Brisbane, Australia. TKe essence was tKat companies sKould be able to identify to autKorities wKo tKeir real owners are. OtKerwise, tKat opens tKe way for money laundering — obscuring tKe origins of money made from illegal actiYity — and tax eYasion. Yet in a follow-up report in 6eptember, tKe anti-corruption group Transparency ,nternational said tKat actual implementation of tKe recommendations into national law Kad lagged. 0ost member countries Kad at least adopted a clear de¿nition of wKat real ownersKip means, but lagged on reTuiring law ¿rms and banks serYicing tKe ricK to reTuire — and independently con¿rm — tKe identity of tKe real owner. &asey Kelso, adYocacy director at tKe anti-corruption organization Transparency ,nternational in Berlin, said tKe reports ³sKould ligKt a ¿re under goYernments to take action.´ ³:e Kope tKat it will galYanize political leadersKip to actually walk tKe talk... You can now see tKe names of tKe people,´ Ke said. DeYelopment adYocates say sKell companies Kelp drain tax and natural-resources reYenue from poor countries tKat desperately need tKe money. TKe ,&,- said tKe documents inYolYe 214,4 companies and 14,15 clients of 0ossack Fonseca. TKe nonpro¿t group said it would release tKe full list of companies and people linked to tKem next montK. Sueddeutsche Zeitung said it was offered tKe data more tKan a year ago tKrougK an encrypted cKannel by an anonymous source. TKe source sougKt unspeci¿ed security measures but no compensation, said Bastian Obermayer, a reporter for tKe paper. TKe data was from 1 tKrougK 2015, tKe paper said. TKe newspaper and its partners Yeri¿ed tKe data¶s autKenticity by comparing it to public registers, witness testimony and court rulings, Obermayer added. ³,t allows a neYer-before-seen Yiew inside tKe offsKore world — proYiding a day-to-day, decade- by-decade look at Kow dark money Àows tKrougK tKe global ¿nancial system, breeding crime and stripping national treasuries of tax reYenues,´ tKe ,&,- said. Panama ³is tKe last major Koldout tKat continues to allow funds to be Kidden offsKore from tax and law enforcement autKorities,´ said Angel Gurria, secretary-general of tKe Organization for Economic &ooperation and DeYelopment, an organization representing mostly ricK countries. ,t Kas been working witK tKe G-20 to restrict tKe use of sKell companies. Panamanian President Juan &arlos 9arela said Kis goYernment Kad ³zero tolerance´ for illicit ¿nan- cial actiYities and would cooperate ³Yigorously´ witK any inYestigation. Reports based on tKe leak said ,celand¶s Prime 0inister 6igmundur DaYid Gunnlaugsson set up a company called :intris ,nc., in tKe BritisK 9irgin ,slands in 200 witK Kis partner at tKe time, Anna 6igurlaug Palsdottir, wKo is now Kis wife. +e reportedly sold Kis Kalf of tKe company to Palsdottir for 1 on Dec. 1, 200, tKe day before a new ,celandic law took effect tKat would KaYe reTuired Kim to declare tKe ownersKip of :intris as a conÀict of interest. :intris lost money as a result of tKe 200 ¿nancial crasK tKat crippled ,celand, and is claiming a total of 515 million ,celandic kronur (4.2 million) from tKe tKree failed ,celandic banks. Gunnlaugsson stands accused by opposition leaders of a serious conÀict of interest because as prime minister Ke was inYolYed in reacKing a deal for tKe banks¶ claimants. But Ke told parliament 0onday ³, KaYe not considered Tuitting because of tKis matter nor am , going to Tuit because of tKis matter.´ An estimated 8,000 angry protesters gatKered outside in ReykjaYik, demanding Ke step down and call new elections. Sueddeutsche Zeitung said its Tuesday edition would report tKat 28 German banks Kad used 0ossack Fonseca¶s serYices to set up 1,200 sKell companies. Alaska Air buys Virgin America to H[SDQG:HVW&RDVWÀLJKWRIIHULQJV NE: YORK (AP) — Alaska Air Group ,nc. is buying Virgin America in a deal wortK 2.6 billion, making Alaska tKe biggest carrier on tKe :est &oast and reigniting tKe debate oYer airline consolidation. TKe proposed merger also would giYe 6eattle- based Alaska a footKold in key airports in New York and :asKington, D.&., increasing tKe airline¶s appeal to business traYelers. ³Our goal is to be tKe premier airline for people along tKe :est &oast,´ Alaska CEO Brad Tilden told inYestors on a call 0onday morning. ,n Virgin¶s Kometown of 6an Francisco, for instance, Alaska currently only Àies to 6eattle. Following tKe merger, it also would Ày from 6an Francisco to seYeral key markets including New York, Los Angeles, Las Vegas, CKicago, Boston, 6an Diego and :asKington, D.C. TKe merger pusKes Alaska aKead of JetBlue Airways — wKicK Kad also bid for Virgin — to become tKe ¿ftK largest carrier in tKe U.6. based on passengers. TKe combined airline would control 5.5 percent of domestic passengers, compared to New York-based JetBlue’s 4.2 percent. By comparison, tKe four largest U.6. airlines — American Airlines, Delta Air Lines, 6outKwest Airlines and United Airlines — controlled a combined 83 percent of domestic seats in tKe past year, according to an AP analysis of data from Diio, an airline- scKedule tracking serYice. Alaska said tKe deal will add Virgin’s 200 daily departures to its existing 1,000 daily ÀigKts. TKe airline currently serYes 112 destinations in tKe U.6., Canada and 0exico. BotK airlines KaYe Yery loyal followings in tKeir respectiYe Kometowns. Virgin Tuickly won oYer passengers witK its new jets, friendly crews, trendy mood ligKting, extensiYe seatback entertainment systems, power outlets and meals on-demand. All of tKat could go away if Alaska cKoses to Ày a uniform Àeet, a decision company executiYes say tKey are debating. Alaska Àiers are just as loyal, loYing tKe airline’s compassion. Like otKer carriers, it cKarges for bag fees but was tKe ¿rst to add a serYice guarantee if a bag doesn’t make it to tKe claim area witKin 20 minutes, Àiers get 25 off a future trip or 2,500 bonus miles. Virgin America went public in NoYember 2014 witK an initial stock offering priced at 23 per sKare. Virgin, wKicK turned pro¿table — barely — in 2013, earned a record 340.5 million last year. TKe airline slowed down its rapid growtK and got Kelp from low fuel prices. 5K RUN, 5K WALK, 10K RUN, KID'S BUTTE SCOOT All races begin & end at Hermiston's Butte Park DRAWINGS • FUN FOR THE WHOLE FAMILY Online registration & race information at WWW.BUTTECHALLENGE.COM REGISTER ONLINE BY APRIL 21ST TO ORDER A CUSTOM TECHNICAL RACE T-SHIRT All proceeds benefit THE HERMISTON CROSS COUNTRY PROGRAM Thank you for your support!
