A huge confidential documents leak has showed how powerful and rich people make use of tax havens for hiding their wealth.
A massive investigation was conducted and 100s of journalists scrolled through around 11.5 million documents from Mossack Fonseca, a law firm’s secret files, for revealing some biggest names of the world who have set up offshore entitles all across the globe.
Panama Papers has been in trend on social media and has hit headlines of major newspapers. However, for some people, the information is just too difficult to be understood and we have explained it in a simple way. Have a look:
Panama Papers explained in simple way!
A kid gets some money and puts it in piggy bank, which is on the closet’s shelf. His mom is aware of this and keeps a check on it daily, to see how much is there and how much is spent. Now, one day, the kid decides that he doesn’t want mom to look at his money and so he goes to his friends home with an extra piggy bank for keeping it in his room. He writes his name on it and keeps it in his closet. Since his friend’s mom is always busy, there would be no one to check it and would be kept as a secret. Looking at the kid, others too decide to do the same. Now, his friend’s closet is filled with piggy banks but one fine day, his mom comes and sees all the piggy banks and calls everyone’s parents for informing them about the same.
But now, not everyone was doing this for a bad reason. Some were doing it for saving some extra money for buying presents for their parents, while some were keeping it safe, because their siblings often stole money. This is what these big people have done by hiding their piggy banks at Johny’s house in Panama. Now, the secret is revealed but we don’t know who did it for which reason.