Follow the Money: inside the world’s tax havens
The following article reproduced at the request of Green Monkey – David, Barbados Underground
SNIP
Around a decade ago, I was writing a book about six countries along a stretch of west Africa’s oil-soaked coast, running from Angola up to Nigeria. Despite hundreds of billions of dollars in oil revenues, their people didn’t seem to be better off. In the case of Angola, then just starting to recover from an oil- and diamond-fuelled war, it was surely worse off than if no natural resources had been discovered. I wrote an article about corruption in west Africa’s oil-producing states, and a few days later got a letter from David Spencer, a US attorney who had worked with a big global bank in Latin America. He invited me to visit him in New York. Several months later we met and, before we had finished our starters, Spencer was getting worked up about matters that were not at all on my agenda: accounting rules, US tax exemptions, transfer pricing – and some curious legal arrangements in Delaware, a small US state roughly halfway between New York and Washington.What on earth did any of this have to do with Nigeria? Realisation began to dawn: Spencer was telling me that the US was itself a giant tax haven, and that this was intensely relevant for west Africa. He explained why. During the Vietnam war, the US was spending more money overseas than it was earning there, and dollars were flowing out. To finance its growing deficit, the US wanted to lure foreign dollars back home. It did this by turning itself into a haven: creating tax benefits for foreigners. The idea was to start hoovering up capital flight and dirty money from around the world; looted west African oil money would do nicely.
So the US has been fighting hard against foreign tax havens, to crack down on its own tax cheats. At the same time the US is a big part of the world’s problem, with Wall Street banks profiting from American willingness to help foreign tax cheats. Britain’s own array of satellite havens – the Cayman Islands, British Virgin Islands, Bermuda, Jersey, all of which sport the Queen on their banknotes – are part of the same problem.
Barbados Underground 
What do these mean:
Data caveats and limitations
The ICIJ Offshore Database shows relationships and networks among people or companies and offshore entities. Consider this database like a corporate registry where you can check information about a company and the people who played a role in that entity at a certain point in time. Roles include being a director, a shareholder, a beneficial owner, a trustee, among others.
The data are a small part of a cache of 2.5 million leaked offshore files that ICIJ analyzed with a team of 112 reporters in 58 countries for more than 15 months. Stories based on the records have appeared in leading media outlets around the world since April 3, 2013.
The database includes entities incorporated in 10 offshore jurisdictions: British Virgin Islands, Cayman Islands, Cook Islands, Singapore, Hong Kong, Samoa, Seychelles, Mauritius, Labuan and Malaysia. The information comes from two offshore service firms: Singapore-based Portcullis TrustNet and BVI-based Commonwealth Trust Limited (CTL).
Other than deleting obvious duplicate records, ICIJ has not altered the data. The relationships and networks you will find in the Offshore Leaks Database are presented as they appear in the original databases ICIJ obtained.
The only enhancement that ICIJ has made is a country identification filter used for searching purposes only. This identification is a result of a largely automated process that detected the country information in addresses, jurisdictions or tax statuses and applied the connection to the associated entity, master client or officer. Limitations include potential data entry and country matching errors.
All the officers and companies that lacked an address in the original databases or whose addresses were so incomplete that we could not reliably link them to a specific country have been grouped in a category called “Not Identified” in the country filter.
Data involving certain privacy concerns have been removed. Some of the information we are withholding includes:
Email addresses and telephone numbers
Passports
Bank Account information and financial transactions
Assets
Pictures
Here are other important caveats about the data:
Our extensive reporting for more than a year has demonstrated that the data are accurate. However we have been unable to independently verify each record because of the massive size of the Offshore Leaks Database. We encourage users to verify their search results against other sources of information.
The data cover a period of about 30 years ending in 2010.
Typos and misspellings are frequent in the original databases.
Because this is a relational database that connects people and companies, isolated entities or persons with no apparent connections have been removed. Isolated addresses have also been removed.
Searches can be made using Chinese characters but they will show results only if the entries in the original databases were written in Mandarin. Most Chinese names in the Offshore Leaks data are written in pinyin.
In this story we tell you how our journalists and programmers worked with the offshore data to build this application and in this one we explain how to search by country efficiently.
Glossary
ICIJ has used in this application the terminology that appears in the databases it received. Here are some useful definitions:
Bearer shares
Company shares that exist only in certificate form and whoever “bears” the certificate is deemed to be their owner. They allow for anonymous transfers of control.
Beneficial owner
The ultimate owner of an offshore company.
Beneficiary
A person who is entitled to certain financial benefits under a trust arrangement. Sometimes beneficiaries are not aware of their role in a trust because the settlor or the trustee have not notified them.
Dormancy Date
The date when an offshore entity stopped being active.
Incorporation Date
The date when an offshore entity was created.
Listed Address
Contact postal address as it appears in the original databases obtained by ICIJ.
Master Client
Often an intermediary or go-between who helps a client set up an offshore entity.
Nominee
A person or company that acts on behalf of the beneficial owner of an entity to provide an extra level of secrecy.
Officer
A person or company who plays a role in an offshore entity.
Offshore Entity
A company, trust or fund created in a low-tax, offshore jurisdiction.
Protector
An advisor to a trust settlor who oversees the work of the trustee.
Offshore Service Provider
Firm that provides services in an offshore jurisdiction to incorporate, register and manage an offshore entity at the request of a client.
Sundry Account
An internal account created by the offshore services firm to record miscellaneous charges of an officer or master client.
Tax status
In this database, it is information that relates to the jurisdiction where an entity may have fiscal duties.
Trust
A legal arrangement in which an individual transfers assets owned by him/her to a trustee.
Trustee
A person who holds title to the assets in a trust and is responsible for administering the assets on behalf of the beneficiaries of the trust.
Trust settlor
A person who creates a trust or transfers assets to an already existing trust.
Underlying officer
A person or company who plays a role in an offshore entity but whose name appears behind the name of a nominee.
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Chancery House is Trevor Carmichael’s Chancery Chambers.
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There are legitimate uses for offshore companies and trusts. We do not intend to suggest or imply that any persons, companies or other entities included in the ICIJ Offshore Leaks Database have broken the law or otherwise acted improperly. If you find an error in the database please get in touch with ICIJ.
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@Simple Simon
To your last comment see Crusoe’s comment above, he was clear in pointing out that being included in the data leak DOES NOT point to fraudulent behaviour.
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If one juxtaposes the names of businesses above that are identified in the Panama Papers with the statement of the Minister in the Nation, it appears that, so far, there are no salacious outings of the Political class and its friends here. One is not certain if that will hold up when the final database is released in May. But until then it looks as if the Barbados Offshore jurisdiction might be relatively clean.
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David
Surely anything in which Senator Sir Trevor Carmichael’s Chancery Chambers is involved would be beyond reproach
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@DD
Not necessarily
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David;
Following on your 6:04 pm comment. Here’s a discussion on BU that adds some data.
https://barbadosunderground.wordpress.com/2014/11/14/chris-sinckler-and-david-estwick-saga-continues-money-is-sweeter-than-sugar/comment-page-1/
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Thanks Are-we-there-yet, w are on the same wave length.
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@ David //David April 7, 2016 at 4:38 PM # @Simple Simon
To your last comment see Crusoe’s comment above, he was clear in pointing out that being included in the data leak points to fraudulent behaviour.
Many individuals and companies may operate on a quite legitimate basis. My points (2) to (4) give parameters for fraudulent behavior and as I noted, one must examine on a case by case basis.
Apologies, as I was obviously not as clear in my summary as I thought.
Regards
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@Crusoe
BU’s mistake, the comment should read:
“To your last comment see Crusoe’s comment above, he was clear in pointing out that being included in the data leak DOES NOT point to fraudulent behaviour.”
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@ David, Noted, thank you.
All that said above, likely the matter is in for a long haul, not only for the particular law firm in question, but for many other law firms too, as well as the whole issue of international business.
Public pressure is strong and, despite what we have noted re not automatically indicating any wrongdoing by being on the list, the world public do seem, to put it mildly, quite aggravated and looking for folks to jump on.
We are looking here at an issue of have and have nots, of what is perceived as moral vs legal, which is quite an argument in the first place and interweaved with that, Government’s looking for their share of the pot, generally in terms of international (offshore) business, as well as likely now specifically.
At the best, we can hope for soul searching about what is the best way to approach taxation of individuals and businesses, and that such solutions will be laid down on a level playing field for all.
At the worst, the event will bring out the dragons and it will be individuals and corporations vs Governments, jurisdictional right as seen by some vs jurisdictional demands for ‘home’ countries share of tax revenue, disagreements as to solutions and a playing field that is inequitable, as the end result.
I would suggest, that this cannot be divorced from the current economic scenario, which every country is facing as a challenge, no exceptions.
My one question at this point, is as to who actually leaked the data and what was the motive.
That is actually critical, in terms of assessing what direction we are going in with this.
Do you believe the motive as altruistic, highlighting an, even if not wrongful by law, inequitable field of taxation of revenue, or could one actually surmise the motive as a bit more sinister, with the intent to unleash the hounds, to destabilize inter-government relationships?
One has to wonder.
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leak vs hack?
Who stands the lose the most? Is it those directly involved or the geographies where the funds are being “invested”?
Would the real estate value in many major western cities be where they are without the participation of funds emanating from these “havens”.
We look to inequities in western countries, yet we are reminded again of the vast inequities in the oil rich fifedomes, kingdoms, sultanates etc. And those with leaders who have ‘assumed’ authority. And those noted for widespread corruption.
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Crusoe;
Putin appears to think that governmental entities in the US are heavily involved in the Bahamas Papers leak primarily to destabilize the USSR, any adverse repercussion to other countries and operations mentioned in the documents are purely collateral damage. Perhaps China may think similarly.
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Widespread corruption is right on our doorstep in the country where Caricom headquarters are located…..Guyana.Jagdeo the coolie,notorious for being the most corrupt politician in the ES Caribbean……all coolies benefitting and not a word on this massive criminal coolie from a guyanese coolie sycophant called Rickie Singh.
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Gabriel,
You are disgusting.
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Dear Gabriel: And when Burnham was in office there was no corruption? The Burnham government never ordered the burning of overseas votes in a northern city?
The consular officer, half black, half indian obeyed and burned the votes and then in an act of conscience quit.
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Judging from the small list so far, a few law firms, DGM Bank and Trust on Broad Street, been operating for some years as Canadian Offshore Company, one or two other familiar addresses, it’s best to wait for the full list, one name got me puzzled.
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Guyanese politics is nasty race based politics. All parties, both races do nastiness to the other side.
Stupseee!!!!
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@Well Well & Consequences April 7, 2016 at 9:12 PM “one name got me puzzled.”
Which one?
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@Crusoe
My one question at this point, is as to who actually leaked the data and what was the motive
++++++++++++
The Star’s account reads like a spy novel, some cloak and dagger stuff. Mossack Fonseca must be investigating all their employees to see who leaked the information but it could be a contractor who had access to their Data systems. If they are able to identify the individual Panama may attempt to prosecute him/her, the Swiss Gov’t convicted the individual who leaked the HSBC files in absentia.
http://www.thestar.com/news/world/2016/04/06/inside-the-panama-papers-leak-handling-an-historic-data-leak-turned-competing-journalists-into-a-global-investigative-team.html
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Reid…have to wait for full list with info, far as I know there is a dude by that name, lived in Bim for years, businessman from US.
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There is more to that brouhaha, the law firm has offices, in I think New Jersey, they were being investigated for something or other and are accused of shredding documents and hiding info, some gray area between that and now…but….we are seeing the outcome…lol
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“These dodges have real-world impact. Less money for schools, roads, more money for drug barons and worse. Want to know who is buying up those apartments for cash and driving up property values? People with shell companies.”
That is what dodging taxes and creating shell companies to dodge taxes causes.
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http://jamaica-star.com/article/news/20160407/shanique-myrie-accused-beating-american-husband
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@Sargeant April 7, 2016 at 9:31 PM …re @Crusoe: My one question at this point, is as to who actually leaked the data and what was the motive ++++++ and, “…If they are able to identify the individual Panama may attempt to prosecute him/her, the Swiss Gov’t convicted the individual who leaked the HSBC files in absentia.”————–
That eternal question that troubles us: are the Snowdens and other ‘whistle-blowers’ like this, heroes to be acclaimed or traitors/criminals to be vilified and jailed!
Obviously the governments in these jurisdictions know exactly – if not specifically – what is being done as they are the ones who created the environments for the off-shore companies to seek out their alternative lower tax environments and established rules which make incorporation and operations attractive.
So as far as they are concerned any assault on their income generating enterprise is an affront to government policy…well nigh a matter of national security even. Definitely a crime.
So these leaks or hacks essentially tell us clearly what we are unable to process properly (based on election result all around) that our governments are really not in the business of shutting down cross border ‘white collar’ crime.
Oh, of course the various agencies (interpol, OECD, etc) make a lot of noise but when we see details from leaks like this and review the long term nature of the misdeeds we must wonder why sharp investigators don’t spot the trends.
Clearly, somebody spots it…so in the nature of geopolitical control, governments are careful what and how they expose matters…and particularly what they investigate!
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are-we-there-yet April 7, 2016 at 7:49 PM # I do not think so, there is much more to this than just Putin. If anything, any connection to him is the collateral damage.
There is something bigger here, I think. Note that it is alleged that 50% of the companies incorporated via that law firm are in BVI.
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“COULD YOUR BUSINESS USE AN
ANGEL INVESTOR?
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Caribbean Export will soon be introducing an Angel Investing programme as an alternative means for businesses to access finance.
Angel Investors can make a valuable contribution to a business, in the form of a long term cash investment, usually for a minority stake in the business and importantly they also provide expertise. Whether this be specialist technical skills, industry specific knowledge and understanding or more broadly based management experience, they frequently act as a ‘sounding board’ for management to discuss strategy options and plans, bringing commercial common sense and a steady hand in times of crisis.
If you have a business, and looking for investment in exchange for equity, click on the link below to find out more about Angel Investment and to register your interest.”
Piece…ya dougla girlfried got Angel Investors, do you want one, just make sure they are not on the list of the Panama Leaks papers…..lol
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@Colonel Buggy
Are you implying that Shanique was following a green card?
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@DPD
That eternal question that troubles us: are the Snowdens and other ‘whistle-blowers’ like this, heroes to be acclaimed or traitors/criminals to be vilified and jailed!
+++++++++++
Depends on which limb you are perched, one man’s meat is another country’s poison Julian Assange is still in the Ecuadorian Embassy, Bradley Manning is serving 35 years in de slammer, Edward Snowden is in one of Putin’s Dachas, Switzerland is still trying to get its hands on Hervé Falciani. Yet in some quarters all these men performed a valuable service as they shed some light on what Gov’ts and the ultra rich are doing under the cover of secrecy but if you listen to e.g. Michael Hayden (former NSA and CIA head) Snowden should be prosecuted under the full extent of the law. The Russians don’t go through the niceties of trial see Alexander Litvinenko (if yuh talk out deh hand they will put you down) even now some Russian defectors are provided with false identities when they move to the US.
In the end it could be your freedom or your life.
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Can anyone say why the little guy Denis Kellman poking his ministerial nose in matters beyond his understanding.He has declared as a cabinet minister responsible for housing that Barbados is in the clear insofar as the Panama Fonseca matter is concerned.Whatanass.
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Lol….we all know Kellman is not the brightest spark, or he would have known that Cahill is shit.
That being said, if he would project a few brain cells, he would know that investigations have only just started, all the names have not been released, the smaller fish we will know next month and since small fish are easier to reel in, he better watch himself.
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@ well well and Consequences
I see that you know bout dat scheme of Devil Investors dat Caribbean Export setting up Ingrunt Bajane and West Injuns for but you only setting me up lolol
Now let me tell you how they Devil Invesror program is set up to work
Certain so called crooks and Pamela conspiring to establish a zero investment fund.
Here is how it works.
You know how seed capital works?
Say your project is going to cost $500 Seeders are supposed to invest say $50 and get matching grants of $450
But here is what Pammy and her Devils cooked up with the €134 million
They wrote up the projects with the Devils for $600 and the Devils get their $50 plus, she then shares the $50 down the middle as the project gets the $500 it needs!!
Looka dem international agencies real foolish yuh
All you need is some big names like Dr Basil Springer former director of CLICO, Abed, Blades, Foster and you gone clear…
I gine gots tuh stop responding to you doah, you always goading me on to expose dese peepe and dere is only so mush an infinity amplifier can do.
Dem do a investigation yesterday but dem doan look everywhere heheheheh
Don’t use land lines de DLP fellers starting to do de same ting Mia and De udder fellah was doing, this is all the outcome of giving toys from the JRCC to likkle boys, wid small parts
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PODRYR
Please help me out over at
https://barbadosunderground.wordpress.com/2014/11/14/chris-sinckler-and-david-estwick-saga-continues-money-is-sweeter-than-sugar/#comments
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Lol…..Piece, I swear, these people need psychological intervention.
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Forgive me. I am confused. Surely no-one in their right mind who was secreting funds got by nefarious means would be stupid enough to be hiding them in an off-shore Barbados company account. Are not the names in the Barbados list of little, if any interest? Should we not be scanning the names and entites in Panama, Bermuda, Cayman Islands, Bahamas, Switzerland etc. where those who have ‘arrangements’ would be registering companies and having funds deposited? Are we not looking in the wrong place? Someone in the know please clarify.
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Mitch….DGM Bank and Trust is a an offshore Canadian concern, therefore they are using the double taxation treaty Canada has with Barbados and other concessions for being an offshore company, why then are they also using Panama as an offshore whatever…..that is confusing, I cant even ask the Canadian dude I knew who managed the company, he died a few years ago….but…the directros are the usual suspects in Barbados, I am sure Canada will investigate.
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WW&C
Well said.
If DGM is legit and on the up-and-up, Senator Sir Trevor can give them all the professional advice they need to ensure they are operating within the law and the treaty.
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Due D….he has been their attorney and advisor for a very long time.
What is confusing people in these leaks, is the shell companies are set up to do whatever, what they do is financial, what is being investigated is that financial relationship to banks like HSBC, Credit Suisse etc, who have known track records and who are unable to do any financial transactions without using US banks, which are clearing houses, in doing so they are walking that fine line, it was funny how the law firm came to the attention of authorities a few years ago……you wont see me shedding tears for what they are now being exposed to…, too many people been struggling to survive for the past 40 years……so their secrecy will soon be a thing of the past.
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Given the number and wealth of the clients, the law firm Fonseca must have been the envy of all law firms in the Caribbean. The nature of the services they offered appears to have been an open secret for the super rich, for politicians and for the well connected.
Whilst the issue so far has mainly been one of possible tax avoidance, it will not surprise me if money laundering become a part of this story.
It makes one wonder what others sees as our contribution to modern society; we have the brain drain; hiding or laundering funds; as a tourist destinations; or as a playground for the rich and famous.
Are we doomed to be just a part of the crew or just having small pars as members of the supporting cast. Our governments have to unite and chart a policy so that our nations are taken seriously and not seen as just hiding places for some businesses.
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What is unraveling here is no secret. The super rich and the powerful have always operated in packs well hidden from public scrutiny given the influence. Sometimes they get it wrong.
>
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Gazer…there are a list of names re arms dealing, money laundering and drug dealing in the Panama Papers Leaks, the connection has already been made, that is why Fonseca is quick to point out that they facilitate the acquition of the shell companies but cannot tell clients what to do with them…like a Nigerian woman once told a judge in NY…”yes I sold people the heroin, but I did not tell them to use it”
So…we shall see…lol
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MInister Kellman asserts that Barbados is clean.
http://www.barbadostoday.bb/2016/04/08/no-scandal-here-says-kellman/
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CRA seeks to recoup $2.6-billion with five-year plan to fight tax evasion
http://www.theglobeandmail.com/news/politics/cra-seeks-to-recoup-26-billion-with-efforts-to-fight-tax-evasion/article29583539/
“The agency will also zero in on four selected international jurisdictions this year for deeper scrutiny.
The first place on the list is the Isle of Man, which saw $860 million worth of electronic transfers with Canada over a 12-month period.”
While Barbados has not been mentioned in the context of a Tax Haven for the purpose of Tax Evasion, it is know to be a preferred jurisdiction for tax avoidance structuring by Canadians; it may be one of four jurisdictions to be zeroed in on by Canada Revenue Agency
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Spare a thought for the Prime Minister of the UK.
http://www.bing.com/videos/search?q=skinner+attacks+cameron&view=detail&mid=3F590F097C3D414810E33F590F097C3D414810E3&FORM=VIRE
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http://fortune.com/2016/04/09/bad-security-panama-papers/
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People are wondering ‘where are the Americans’; Some are saying the American can hide money at home, no need to go to Panama.
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“Barbados and the Cayman Islands are the two biggest tax havens where Canadian money goes,” Mr. Howlett said. “They need to put those on the list as well.”
The leak of the Panama Papers highlights the need for much better global……
Lol…so much for Kellman’s crsp.
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*crap
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50,000 people are marching though London demanding David Cameron’s resignation
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150,000 people onto the streets of London.
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