"Secrets of Cyprus: Disclosure of shadow operations for tax evasion."

The use of tax havens to avoid paying the full amount of taxes is a major political issue that requires constant attention.

Research and tax havens

A study conducted by The Indian Express in collaboration with the International Consortium of Investigative Journalists (ICIJ) provided additional insights into the complex issue of tax havens.

"Cypriot confidentiality" focused on how the Mediterranean island has become a preferred destination for the global wealthy elite in their search for a shadow financial center for laundering dirty money.

Over the past decade, a series of investigations - from Offshore Leaks in 2013, HSBC Swiss Leaks in 2015, Panama Papers in 2016, Paradise Papers in 2017, to Pandora Papers in 2021 - have revealed a complex network of transactions that demonstrate how tax havens assist wealthy individuals around the world in moving their wealth and avoiding taxes in their home countries.

Potential losses for countries

According to the State of Tax Justice 2023 report created by the taxpayer advocacy group Tax Justice Network, countries around the world risk losing $4.8 trillion to tax havens over the next 10 years. This is almost equal to the GDP of Japan, the third-largest economy in the world.

Results of the study "Cypriot Confidentiality"

The Cyprus Papers, which involved more than 270 journalists from over 60 media companies in 55 countries and territories, entailed a thorough examination of 3.6 million documents in English and Greek, obtained from six Cypriot financial services and a Latvian agency with an office on the island. The Indian Express newspaper analyzed more than 20,000 documents.

The investigation revealed investments made by well-known Indian businessmen who benefit from a range of privileges offered by Cyprus: from preferential and loosely regulated tax rates to exemptions from taxation on income and profits from offshore trusts; the absence of inheritance tax, the need for trust registration, and promises of beneficiary confidentiality.

Investigations also revealed the names of several well-known Indian investors who became citizens of Cyprus under the "Golden Passport" program, which was in effect from 2007 to 2020.

Lessons from the revelations of Cypriot confidentiality

From an international perspective, the main lesson from the revelations of the Cyprus Papers is how Cyprus, despite being a member of the European Union, has become a welcoming financial center for Russian oligarchs. Essentially, the investigation revealed how this EU member state facilitated the authoritarian regime of Russian President Vladimir Putin and other dictators and anti-democratic figures in tax evasion and money laundering.

Inside the country, the results of the investigation illuminate dark corners, allowing the government and regulatory bodies to move forward more purposefully.