It's already happening. Heads are starting to roll. Perhaps their owners know it's time to get out. The Panama Papers fallout has commenced. And I suspect the Hon. Winston Peters is correct. There is much more to come.
On the Q&A TV One programme on Sunday he was emphatic that the thousands of trusts set up offshore all around the world, identified in the leaked documents, were for tax evasion purposes. Furthermore, he is concerned that New Zealand will not escape with an untarnished reputation, when it was revealed we have been named as one of the many countries that provide a safe haven for those wanting to set up a trust. Apparently we don't ask questions. Although our Prime Minister seems to think our trust laws can withstand scrutiny. More unveiling to come seems to be what most commentators from around the world are saying. I can feel another Wine Box saga coming on, as far as New Zealand goes.
I saw the interview with John Christensen, British Tax Haven Specialist, being interviewed on the same programme. He was direct and forthright in his views. Offshore trusts and shell companies are all about secrecy. You don't know who the trustees are, for what purpose the trusts are established, and how the money was derived. Nothing is transparent or open. He went further saying the Information Exchange Agreements between countries "aren't worth the paper they are written on". That takes care of New Zealand's lame argument.
What amazed the journalists I spoke to over the weekend was that the two-year collaboration and investigation was able to be kept quiet. It's no mean feat to involve and direct so many journalists working across continents, preparing to leak 11.2 million documents. How did they manage to keep this under wraps while going about their other work? Perhaps it was the scope and size of the leak, documents dating back 40 years, or the potential fallout the leak would cause that convinced them to hold the line. Whatever the reason, these bold journalists have done the world a favour. It appears no New Zealand journalists were involved in the undercover work, according to a spokesman for the International Consortium of Investigative Journalists. Hats off to that organisation.
Now, all around the world, we are seeing and hearing the disgust that is being directed at those who have chosen to hide their wealth in offshore trusts to avoid paying tax. Tax evaders are hated. We all want to minimise the amount we have to pay. But pay we must. Countries depend on their citizens to pay their taxes so that governments can ensure core services such as health, education, justice and infrastructure requirements are adequately resourced. When the wealthy hide their money and assets in offshore trusts and shell companies to avoid paying their share of tax someone has to pick up the shortfall. The working man and woman in the street. Their ability to increase their wealth is compromised by the greed of the wealthy. The rich get richer while the poor remain pretty much in the same situation.
