Paradise now

The Paradise Papers – the second massive leak of documents related to offshore accounts in tax havens – is unlikely to have the same seismic effect in Pakistan as the Panama Papers. Even though as many as 135 Pakistanis are named in this latest round of leaks, they only include two individuals with a political profile: former prime minister Shaukat Aziz and former National Insurance Corporation Limited chairman Ayaz Khan Niyazi. Even though there is nothing quite as headline-grabbing as the name of a sitting prime minister in the Paradise Papers, it would be unwise to ignore its implications. These leaks confirm that the political and business elite of the country operate by a different set of rules. They are easily able to move their wealth, likely untaxed, around the world. Shaukat Aziz’s disclosure papers when he ran for Parliament did not include these assets and all the prominent businesspeople in the list should have their tax returns scrutinised to see if they had declared these offshore companies. The Paradise Papers underscores the need for true accountability and anti-corruption measures beyond the trials of just a few individuals. Anyone who has moved money offshore without paying the taxes due on them is guilty of defrauding the nation and for that they must be held accountable.

While it is not illegal to own an offshore company or send money abroad, it is thought that some of the people who do so are trying to dodge taxes in their countries. We clearly need to not only investigate all the names in the Panama and Paradise Papers but also crackdown on tax evasion. The problem is not in the laws but in their enforcement. Tax authorities are susceptible to bribes and governments do not want to take action against the industrial and financial class. The Paradise Papers show   the impunity with which the ruling elite and its allies operate. In many ways, the worldwide elite have formed a separate system of their own, where they have more in common with each other than the countries they are elected to represent. The number of names in the Paradise Papers is staggering – including the Royal Family in Britain, the heads of state of Liberia, Australia, Ukraine, Turkey and Columbia, members of Donald Trump’s administration and some of the largest companies in the world. This transnational coterie of the wealthy and powerful has gamed the system to its benefit, leaving the rest of us to play by the rules.