Proposed EU directive targets shell companies after Pandora Papers exposed offshore system abuses | WHAT REALLY HAPPENED X-Frame-Options: SAMEORIGIN

Proposed EU directive targets shell companies after Pandora Papers exposed offshore system abuses

The European Commission proposed a new directive this week to target shell companies, less than three months after the Pandora Papers investigation by the International Consortium of Investigative Journalists exposed the large-scale use of anonymous vehicles to hide money, avoid taxes and disguise asset ownership.

The proposal, dubbed “Unshell,” would seek to ensure that letter-box companies that have “no or minimal economic activity” in the EU cannot benefit from any tax advantages, the text of the proposal says.

“Recent investigations such as OpenLux or the Pandora papers were another reminder of the injustices that characterize our economic system today,” economy commissioner Paolo Gentiloni said at a press conference on Wednesday.

OpenLux, by Le Monde and other news organizations, showed how Luxembourg’s investment fund industry helps people launder money and avoid tax.

Pandora Papers, an ICIJ investigation in collaboration with 600 reporters worldwide, is based on a leak of 11.9 million financial records from 14 offshore financial service providers. The data unveiled details on shell companies and trusts owned by 29,000 people from around the world, including country leaders, powerful business people, criminals and celebrities.

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