Hong Kong government sidesteps calls for action after revelations in Panama Papers
There is no law against setting up firms outside the city’s jurisdiction, minister says, after leaks reveal Hong Kong’s key role as a tax haven intermediary
As European nations fast-track proposals to crack down on tax avoidance after the Panama Papers revealed how the world’s wealthy hide their riches, the Hong Kong government sidestepped questions on whether it would take any action.
New official data also revealed that a government agency set up to combat money laundering had passed on more cases than ever for criminal investigation.
The government, however, remained tight-lipped over calls by lawmakers to investigate names linked to secretive Panamanian law firm Mossack Fonseca or investigate potential illegality among the city’s middlemen who dispense offshore advice.
Hong Kong was revealed in the leaked Panama Papers as having the most intermediaries offering services for the purpose of setting up offshore companies to help wealthy clients shelter money. The city was labelled a “top centre for secretive offshore financial services”.
In a written response to questions from accountancy sector lawmaker Kenneth Leung, the government said such services were not illegal in Hong Kong.
“There is no law in Hong Kong prohibiting companies or commercial entities from setting up companies in jurisdictions outside Hong Kong,” said Secretary for Financial Services and the Treasury Professor Chan Ka-keung.
