For Japan, Panama Papers are tool to skewer China
TOKYO — The names of major public figures in Japan have been conspicuously absent from documents — the Panama Papers — related to a growing international tax haven scandal, but that doesn’t mean the issue is being ignored in the world’s third-largest economy.
The Asahi Shimbun newspaper reported that more than 400 Japanese individual and companies are included in the leaked documents. So far, however, none have included major political leaders or prominent citizens, according to the newspaper.
In the absence of high-profile Japanese names, newspapers have reported prominently on the leaked documents that implicate relatives of at least eight current or former leaders in China — Japan’s major economic and political rival in Asia.
The Kyodo News agency reported that the files show that relatives of three current members of China’s powerful Politburo Standing Committee, including President Xi Jinping, have been involved with shell companies created by the Mossack Fonseca, the Panama law firm at the center of the revelations.
None of the officials in China have stepped down or admitted wrongdoing. Media reports in China suggest that authorities have taken measures to censor social media discussion of the scandal. Altogether, nearly a third of the law firm’s business came from its offices in Hong Kong and China, making China the firm’s largest market, according to Kyodo.
That’s not surprising, said Robert Dujarric, director of the Institute of Contemporary Asian Studies at Temple University’s Tokyo campus.
"Japan is a stable country, so there’s less incentive to put your money away overseas than for Chinese or Russians. Though, of course, you do have lots of tax evasion in rich countries, as well," Dujarric said.
The leaked files contain information on more than 200,000 offshore entities connected to people in more than 200 countries and territories. The files were obtained by the German newspaper Sueddeutsche Zeitung and shared with the Washington D.C.-based International Consortium of Investigative Journalists, of which the Asahi newspaper is a member.
While offshore companies are not illegal, they can be used to hide wealth or illicit activity, such as tax evasion or money laundering.
1,000 secret Nevada firms, and most trace to 2 overseas addresses
World leaders in Iceland, Britain and Argentina have been connected to the documents to varying degrees.
Japan's Mainichi Shimbun newspaper reported that the administration of Japanese President Shinzo Abe is considering raising the issue of offshore tax havens during the Group of 7 summit, or G-7, which Japan will host in May. Enhanced measures to combat tax avoidance by multinational companies were included in a joint statement at a G-7 meeting in Germany last year.