The panama leak took
the world by storm. The main issue is the revelation about the tax evasion by
known businessmen and politician around the globe. Among them there are sitting
heads of the government and heads of the states as well. Some of them showed
reactions such as resignation by the prime minster of Iceland, and the order of
investigation into the allegation by the PM of Pakistan.
The question, however,
needs to be viewed form a broader angle. The very basic point is the tax
evasion by the key businessmen through offshore companies. This is one of the lacunas
in the global tax system. Most of the wealthy people of the developing countries
take their capital to other countries to evade taxes and run their business
with high margin. Panama leak is just one episode which exposed such practices,
whereas there are a number of others which have not been discovered yet.
The situation needs
to be tackled systematically and pragmatically rather than point scoring and creating
media hypes. The leak reflects tax evasion which needs to be curbed. Instead of
making fuss through media and accusing one's opponents it is better to take
steps for the promotion of global tax culture. Such mechanism needs to evolve
which will check such practices in future and does not let anyone go without
paying due taxes.
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