Obama: Tax Evasion is a Major Global Problem

Barack Obama, the President of the United States, stated on Tuesday that tax evasion is a significant international issue, referring to recent revelations regarding the tax avoidance of politicians and international businessmen. According to the French news agency, Obama emphasized that the wealthy and large corporations exploit the weaknesses of the tax system, something that most taxpayers cannot do. He criticized the growing trend of American companies merging with international firms to evade taxes, stating that while these companies benefit from the strong American economy, they are unwilling to pay their fair share. Obama reiterated, "Tax evasion is a major global problem." The U.S. Treasury Department has intensified regulations regarding American companies that move their headquarters abroad while conducting the rest of their operations in the U.S. However, Obama urged Congress on Tuesday to pass new laws to close tax loopholes. He added that due to structural weaknesses in tax laws, those who can afford to hire lawyers and accountants can evade their responsibilities. Recently, over 11 million confidential documents from the Panamanian law firm Mossack Fonseca, detailing financial operations to hide money for a large number of the world's wealthy, have been released. Meanwhile, Ramon Fonseca, one of the founders of this law firm, stated on Tuesday that Panama's success in establishing itself as an offshore banking center has provoked envy among competitors. He said, "What has happened is unfair, and undoubtedly if these issues had occurred for a firm operating in a large country, nothing would have happened, but because it pertains to Panama, it has become the world's top news." Panama established its position as a money laundering center in the 1980s during the dictatorship of General Manuel Noriega by opening its doors and facilitating the transfer of money for Colombian drug trafficking gangs. Given that the country's economy has been based on a dollar parity rate, it has continued to attract illegal funds over the decades. As a result, Panama's economic growth rate has been over eight percent in the last decade, earning it the nickname "Dubai of Latin America." In this context, the first aftershock of the Panama Papers' release saw the resignation of Iceland's Prime Minister, and there have been widespread global reactions to the release of the "Panama Papers" regarding money laundering, exposing "massive money laundering" by some world leaders and references to Ahmadinejad.