In some states of America, the rich around the world keep their wealth hidden.
As soon as the name of Tax Heavens comes up, the picture usually emerges of the banks of the Caribbean country of Cayman Islands or Switzerland, and not the city of South Dakota in America. But leaders and rich people from all over the world have hidden their assets here too. A report revealing this has brought under renewed scrutiny the places that harbor tax evaders in the US.
The report ‘Pandora Papers’ released by the ‘International Consortium of Investigative Journalists’ (ICIJ) gave information about the hidden wealth of influential and corrupt people. It describes how these people used accounts abroad to hide illegal assets worth thousands of billions of dollars. The report also revealed secret accounts in the trust in various locations in the US, including 81 in South Dakota, 37 in Florida and 35 in Delaware.
Pornhub owner’s account is also here
According to the report, those who used the South Dakota trust for tax evasion include Ecuadorian President Guillermo Lasso and family members of Chinese industrialist and former Vice President of the Republic of Dominica Carlos Morales Troncoso. The name of David Tasillo, the co-owner of Pornhub, one of the world’s largest online porn sites, has also appeared in the Pandora Papers and two pseudo-companies have been found to be registered under his name in Delaware.
As of 2019, more than 100 trust companies in South Dakota had assets of about $370 billion. One company alone, South Dakota Trust Company LLC, had said on its website to have assets of more than $100 billion. 15 percent of its customers come from international families from 54 countries. Delaware started the credit card and financial services industry in 1981. The state now has 47 state and national trust companies with assets worth $3.8 billion.
How wealth hides in America
The main reason for wealthy people hiding their assets in many states of America was the breaking of the “rule of any trust to exist for a predetermined time period” by the lawmakers of those states. Removing these rules facilitated the establishment of so-called dynastic trusts in which wealthy people could pass on money to their future generations without paying any taxes.
what are pandora paper leaks
The Pandora Paper Leaks that surfaced last week have brought to the fore such a truth of the world, which many people are finding it difficult to believe. Apart from India and Pakistan, the hidden wealth of the rich from Russia to America has been known about which hardly anyone would have guessed. After this revelation, there has been a demand in America that the Finance Secretary should be removed from his post because he only allowed the richest and powerful people of the country to hide money.
The ICIJ report came on Sunday and involved 600 journalists from 150 media outlets in 177 countries. Also, about 12 million files of 14 companies were studied. Steve Wymhoff, director of the Washington-based Institute for Taxation and Economic Policy, said that the Pandora Papers actually give detailed information about how people in secret countries hide their wealth with the goal of tax evasion.
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