Svobodna Dnevnik

[Hadash]

El Correo Internacional

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"Magentinian Papers" exposes worldwide tax avoidance
By: Rodolfo Valentino
Published: Zechyr 24, 1584


Anti-corruption activists hope the leaks will start a worldwide debate about tax havens.

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When Slawowanski Zvon, a Mordvanian newspaper, published a article accusing a number of Mordvanian politicians and businessmen of being allegedly involved in tax avoidance, a small scandal prompted, leading to the resignation of Dragomir Pengek, former leader of the centrist Republican Liberal Party as member of the parliament three days ago. However, as the newspaper kept publishing more leaked documents, the scandal has already reached a worldwide dimension.

The Mordvanian journalists claim to be in possession of millions of confidential documents leaked from Magentina-based law firm Mondragón-Thompson which involve tax avoidance and offshore accounts information in Mandavines countries and territories regarding thousands of world leaders, politicans and businessmen.  

Marcus Miller, director of the International Office for Financial Reform, called the leak "probably the biggest blow the offshore world has ever taken because of the extent of the documents". Miroslav Balowsky, Slawowanski Zvon editor-in-chief, has described the release as the "biggest leak in the history of date journalism". Balowsky has confirmed that his newspaper is negotiating with other Brigidnan media outlets in order to share the information in "a responsible, professional, ethical, and transparent way".

The leaks were reportedly shared by an anonymous source from Mondragón-Thompson, an important law firm based in Palmenta, Magentina, which is renowned for financial and taxation management. The firm, however, has denied that it was involved in anything illegal, and has denounced the leaks as an attack against privacy and responsible business practices. Mondragón-Thompson spokesperson also told news sources that the company always operated within the law and had been hacked, threatening legal actions against any media company which decides to publish or cooperate with the leaks. "This is not journalism", the spokesperson said, "but data vandalism".

According Slawowanski Zvon, notables figures mentioned in the leak range from Bogdan Tredina, former Mordvania's minister of Commerce and Communications who already served a prison sentence for corruption between 1574 and 1579; Keszarian businessman János Vertényi, a dozen of elected politicians from several political parties, and members of the Takáts clan, a powerful business family in Keszaria; more than fifty Nentsian officials, including Ksenia Vynnychuk; Alfred Aria Sulkholm, leader of Lanlania's Imperial Sentric Party, along several of his relatives; billonaire Naunton Roger Hamnett, an influential businessman in the Mandavines; Mayari President Alberto Hidalgo; and Gunnar Bjeppesen, a retired Nylander politician, former Chairman of the New Centrist List and who recently endorsed the Moderate Coalition of Nyland. Officials, businessmen, and nobility and royal houses individuals from more than 60 other countries were also mentioned, including Saratov, Biyra, Calgarov, Hôinôm, Akitsu, Sequoia, Khokharsa, Khibland, Maurnnia, Nerysia, Severyane, Batavia, Florinthus, Goldecia, Adwest, Arrenland, Caladria, or Millerainia.

Most of those named have denied any wrongdoing and there is no evidence many named as clients of the firm were involved in anything illegal or improper. Mordvanian President Zvezdana Serebryak has called the Republican Council to call a special parliamentary commission in order to investigate the deals and propose legislation in order to fight tax avoidance.

So far, the most important political consequences happened at the country where the law firm is based, ending with the resignation yesterday of Liberto Castillo, Minister of Public Works since 1584, who was registered as the owner of three companies based in Lusby and Corwyn. But the consequences could go beyond that, as several relatives of Emiliano Lafuente, Prime Minister since 1578, were personally involved in several investment firms from Lusby & Corwyn, Skoven, and Paradesh. Lafuente has denied any wrongdoing, but opposition leader Antonina Cabrera has demanded either a more conclusive explanation by the Prime Minister or they will call for his immediate resignation. Augusto Maldonado, leader of the controversial MSM political party, has also announced that his party will demand tougher legislation on tax avoidance or it will stop supporting Lafuente's minority government.