Pandora Papers: Spain to investigate tax evasion cases after ICIJ's sensational findings

The Spanish Ministry of Treasury said on October 4 that the Spanish Tax Agency will investigate the alleged involvement of a number of Spanish persons in offshore schemes disclosed in the Pandora Papers revelations published by the International Consortium of Investigative Journalists (ICIJ).

The Pandora Papers, a dossier of more than 11.9 million confidential files was released by the International Consortium of Investigative Journalists (ICIJ) on October 3 after a two-year journalist investigation, exposes over 35 current and former world leaders, as well as more than 330 politicians and officials from around the world, who allegedly committed various types of financial wrongdoings through offshore companies.

Spain "is one of the countries supporting' the international fight against "tax fraud and offshore profiting, and it has already acted on past journalistic investigations into potential tax evasion behaviours, such as the Panama Papers, or whenever it acquires evidence of alleged opaque and fraudulent actions," El Pais reported, quoting the Ministry of Treasury.

According to the newspaper that participated in the investigation, the Manchester City football club manager Pep Guardiola, Spanish singer Julio Iglesias, the ex-mistress of the former head of state, Juan Carlos - Corinna Larsen - and around 600 other Spaniards are among those mentioned in the dossier.

The Spanish Ministry of Treasury conducted 2,116 inspections of persons with considerable assets between 2018 and 2020, resulting in the liquidation of more than $1.6 billion in delinquent taxes.

GOI orders CBDT-led probe into Pandora Papers

The government of India ordered a probe into the 'Pandora Papers' disclosures, which revealed the secret wealth and illicit investments of hundreds of politicians, businesses, and celebrities around the world, including Indians, on October 4.

A multi-agency group led by the chairman of the Central Board of Direct Taxes (CBDT) would oversee the probe. According to the tax authority's official spokesperson, it would also include representatives from the CBDT, the Enforcement Directorate, the Reserve Bank of India (RBI), and the Financial Intelligence Unit. The government of India will also initiate contact with overseas jurisdictions in order to acquire information on relevant taxpayers and companies.

What is the 'Pandora Papers' controversy?

Documents leaked to the International Consortium of Investigative Journalism are known as the Pandora Papers (ICIJ).

It revealed the offshore dealings of the King of Jordan, the Presidents of Ukraine, Kenya, and Ecuador, the Czech Prime Minister, and former British Prime Minister Tony Blair, among others. In total, 100 billionaires and celebrities from Russia, the United States, India, Pakistan, the United Kingdom, and Mexico utilised shell companies and incognito bank accounts to buy secret assets and perform secret financial transactions.

Image: AP