What are the Paradise Papers?

The Paradise Papers are a huge leak of financial documents that throw light on the
top end of the world of offshore finance.

A number of stories are appearing in a week-long expose of how politicians,

multinationals, celebrities and high-net-worth individuals use complex structures to
protect their cash from higher taxes.

The documents were obtained by the German newspaper Süddeutsche Zeitung,

which called in the International Consortium of Investigative Journalists (ICIJ) to
oversee the investigation. BBC Panorama and the Guardian are among the nearly
100 media groups investigating the papers.

The Paradise Papers name was chosen because of the idyllic profiles of many of
the offshore jurisdictions whose workings are unveiled, including Bermuda, the
HQ of the main company involved, Appleby. It also dovetails nicely with the
French term for a tax haven - paradise fiscal. Then again, the Isle of Man plays a
big part.

Who is being exposed?

The offshore financial affairs of hundreds of politicians, multinationals, celebrities

and high-net-worth individuals, some of them household names, have been
revealed. The papers also throw light on the legal firms, financial institutions and
accountants working in the sector and on the jurisdictions that adopt offshore tax
rules to attract money.

** Prince Charles campaigned to alter climate-change agreements without

disclosing his private estate had an offshore financial interest in what he was
promoting Apple has protected its low-tax regime by using the Channel Island of
Jersey
** Formula 1 champion Lewis Hamilton avoided tax on his £16.5m luxury jet,
**The papers suggest The Queen's private estate invested about £10m offshore
including a small amount in the company behind Bright House,
** A chain accused of irresponsible lending One of President Donald Trump's top
administration officials kept a financial stake in a firm whose major partners
include a Russian company part downed by President Vladimir Putin's son-in-law
** An entrepreneur charged with managing the oil wealth of the struggling African
state of Angola was paid more than $41m in just 20 months
** A Lithuanian shopping mall partly owned by U2 star Bono is under
investigation for potential tax evasion
** One of the world's largest firms loaned a businessman previously accused of
corruption $45m and asked him to negotiate mining rights in the DR Congo
**The Isle of Man passed a law that would help tax evaders , ** the documents
show a key aide of Canada's PM has been linked to offshore schemes that may
have cost the nation millions of dollars in taxes, threatening to embarrass Justin
Trudeau
** Llord Ashcroft, a former Conservative party deputy chairman and a significant
donor, may have broken the rules around how his offshore investments were
managed. Other papers suggest he retained his non-dom tax status while in the
House of Lords, despite claiming to have become resident in the UK.

Where do the Paradise Papers come from?

There are more than 1,400GB of data, containing about 13.4 million documents.
Some 6.8 million come from the offshore legal service provider Appleby and
corporate services provider Estera. The two operated together under the Appleby
name until Estera became independent in 2016. Another six million documents
come from corporate registries in some 19 jurisdictions, mostly in the Caribbean.
A smaller amount comes from the Singapore-based international trust and
corporate services provider, Asiaciti Trust. The leaked data covers seven decades,
from 1950 to 2016.

What is Appleby?

A law firm that helps corporations, financial institutions and high-net-worth

individuals set up and register companies in offshore jurisdictions.

Founded in Bermuda and with a history dating back to the 1890s, it has become
one of the largest and best known of about 10 major companies involved in the
specialist arena. The leak shows the US dominates Appleby's client register, with
more than 31,000 US addresses for clients. There were more than 14,000 UK
addresses and 12,000 in Bermuda.

Who leaked the Paradise Papers?

As with 2016's Panama Papers, German newspaper Süddeutsche Zeitung obtained

the original material and was the stepping off point for this investigation. In the
case of the Panama Papers, the originator of the leaks, named only as John Doe,
issued a manifesto a month after the publication date. A simple statement this time
says: "For their protection, Süddeutsche Zeitung does as a general policy not
comment on its sources!"

Who is working on the leaks?

As with the Panama Papers, the International Consortium of Investigative

Journalists, a global network of investigative journalists, was called in to work on
the project. Along with the BBC's flagship Panorama programme, there are nearly
100 media partners involved in 67 countries, including the Guardian and the New
York Times.
Why is this leak different?

The $64m question, or probably more if you are in a tax haven, or offshore
financial centre as the industry prefers to call it. It is indeed the fifth major leak of
financial papers in the past four years and, yes, last year's Panama Papers were
bigger in size - 2.6TB to 1.4TB - but the scale of the information in the Paradise
Papers and how it lifts the lid on sophisticated, upper-end offshore dealings, many
linked to the UK, is unprecedented.

What exactly is a tax haven?

It's hard to pin down an exact definition. Tax haven is the term usually used in the
media and public, whereas the industry would prefer the term offshore financial
centre (OFC). It is essentially a financial jurisdiction outside the regulations of
your own nation used by companies and individuals to lower their taxes on profits
or assets.