(THIS ARTICLE IS MACHINE TRANSLATED by Google from Norwegian)
Sunday 3. April narrowed it. The Panama Papers hijacked the headline in all media, and all of a sudden the world was a safer place for many rich people with hidden wealth. One after the other has been revealed as treasure hunters, from presidents to football stars. The greatest document leak of all time not only points to tax evasion from profiled politicians and others in the circles of power, but also reveals a system that makes it entirely and legally possible to evade tax. Of course, it does feel good when individual individuals who spit on the good of the community are revealed and brought to light – but if we are to overcome the use of tax havens, we must change the system that allows for tax evasion.
The Panama Papers question the lack of judgment of state leaders, celebrities and millionaires over right and wrong, but more importantly, the disclosures point to a regulatory framework that facilitates the phenomenon. The legal loopholes also allow large international companies such as Google and Starbucks to avail of tax evasion with the utmost of course.
Poor hit hardest. The consequences of the Panama Papers revelations do not hit the richest hardest, though it is easy to imagine. We already know that ten times as much money goes out of developing countries every year through illegal capital flight as the world's total aid to the countries. As the global tax thrust is now being rolled up to its full, dirty extent, we must not forget that those who have been most severely affected are developing countries that do not have access to the tax revenues they are entitled to – tax revenues that could have gone to the development of schools, hospitals and roads.
Anyone who has now been brought down with his trousers is just a symptom of the big problem.
As in a shitty and unfair card game, poor countries are left with black carpets. When Nordea's press chief stated that tax planning is available "for customers with complicated finances, preferably with businesses in several countries," he pointed to the joker in the game: Today's financial system is a kind of opposite Robin Hood that facilitates the wealthiest multinational companies to sneak away as much as possible from the poor. In this way, illegal capital flight contributes to the development of stagnation and poverty.
Solution. Aftenposten's huge disclosure has provided a long-awaited insight into an otherwise closed system. Illegalizing tax havens is currently only a distant dream. If the use of tax havens is to become less attractive, transparency and transparency are crucial. However, when the dust settles after all the disclosures and press releases, it is important that the pressure for transparency is also forced through a strengthened legal framework. Norway has a law on corporate tax reporting abroad, but the law only applies to the forestry and extractive industries. If this legislation is to create real pressure that makes it less attractive to steal money, it must of course apply to all companies and to activities in all countries, including tax havens. Only in this way can a real effect of the regulations not only scratch the surface of corrupt heads of state, celebrities and millionaires. Everyone who has now been brought down with his trousers is only a symptom of the big problem: Our global financial system enables tax cuts and capital flight – and this is the system we must work to change.
