On April 4, 2016 we posted Huge Leak From the Panamanian Law Firm Mossack Fonseca! where we discussed that, the offshore planning world was set on fire with the news that 11 million documents were leaked from the Panamanian law firm Mossack Fonseca.
They showed how Mossack Fonseca has helped clients launder money, dodge sanctions and evade tax. The company says it has operated beyond reproach for 40 years and has never been charged with criminal wrong-doing.
Subsequently we posted OECD Ready to Act on Leaks From Panamanian Law Firm Mossack Fonseca where we discussed how government officials from around the world have called on the OECD to convene a special project meeting of the Joint International Tax Shelter Information and Collaboration (JITSIC) Network to explore possibilities of co-operation and information-sharing, identify tax compliance risks and agree collaborative action, in light of the “Panama Papers” revelations.
Now, just 10 days later we discover that Panamanian police have carried out a raid on the offices of Mossack Fonseca, the law firm whose client records were leaked last week. The operation, directed by prosecutor Javier Caravallo, searched for documentation that would establish the possible use of the firm for illicit activities, said the country's attorney general in a statement.
(Photo of Panamanian police outside of the Mossack Fonseca firm in Panama City on April 12.)
Mossack Fonseca has denied any wrongdoing, saying it only set up offshore financial accounts and anonymous shell companies for clients and was not involved in how those accounts were used.
The law firm said on its Twitter account Tuesday night that it “continues to cooperate with authorities in investigations being made at our headquarters.”
Read more at: Tax Times blog