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The Panama Papers, Hong Kong's Role

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  1. #11

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    Another focus in the latest round of revelations is on nationality – a sensitive issue in a city where holders of key public offices are bound to explain a non-Chinese nationality.Lau Ming-wai, son of property tycoon Joseph Lau Luen-hung and chairman of the Committee on Youth, was revealed to have said he was a British national on one of the leaked documents. In response, Lau said he had no plan to switch nationality – despite his having to engage the increasingly anti-mainland youth of Hong Kong.
    The same nationality was given by Lau Wong-fat, kingpin of rural powerhouse Heung Yee Kuk, who held three offshore companies.
    Prominent Hong Kong politicians and businessmen named in new round of Panama Papers leaks | South China Morning Post

  2. #12
    David Smith
    Quote Originally Posted by bugaboo:
    What Cameron said was that taxes were paid on the profits from the sale of his shares in that company. That may or may not the same as all taxes were paid. The gist of Cameron's explanation as to why on offshore company was setup was that it was easier to move money around.
    I don't buy that. It is not particularly difficult to move money from one UK bank account to another. Generally takes a day. It is true if there are large amounts, then these days the banks may have some pesky anti-money laundering rules to check through first.

    I don't buy the privacy argument either. Banks are generally not at liberty to disclose customer's bank balances to newspapers or the general public. Thus privacy is ensured by regulation of the banking industry. UK banks might, however, be obliged to provide information on request from the inland revenue, or the police investing funding for organised crime or terrorism, or a court in alimony proceedings. So the question is: what do you have to hide?

  3. #13
    David Smith
    Hong Kong’s innovation minister and PolyU in new Panama Papers revelations: shares funnelled to pro-Beijing tycoon’s company | South China Morning Post

    This is the most disturbing one I have seen in relation to HK. A local university apparently transferred a large number of shares in an offshore company to a CPPCC member in HK who had previously donated to the university. It is unclear why, or if any payment was made back to the University. The person who endorsed this transfer recently became the head of HK's controversial Innovation and Technology Bureau.
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  4. #14

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    Has the SCMP looked into the BVI / offshore holdings of its current and past owners?

    I am sure Jack Ma and the Kuok family have several of these offshore companies stashed away.


  5. #15

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    The Panama Papers, Hong Kong's Role

    I have't been following too closely, but the raw data or "public database" has not yet been released as far as I know. So looking is currently only possible by the selected press members who are part of the "project" (unless this changed in the meantime.

    Also, we need to remember that this is only data from ONE single service provider. There are many other companies like them.

    Last edited by 100LL; 25-04-2016 at 08:14 AM.
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  6. #16

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    So looking is currently only possible by the selected press members who are part of the "project" (unless this changed in the meantime.
    Free access might mean that shenanigans by media barons might be exposed.

  7. #17

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    Quote Originally Posted by David Smith:
    Hong Kong’s innovation minister and PolyU in new Panama Papers revelations: shares funnelled to pro-Beijing tycoon’s company | South China Morning Post

    This is the most disturbing one I have seen in relation to HK. A local university apparently transferred a large number of shares in an offshore company to a CPPCC member in HK who had previously donated to the university. It is unclear why, or if any payment was made back to the University. The person who endorsed this transfer recently became the head of HK's controversial Innovation and Technology Bureau.
    agree 100% - why is government funded university getting involved with offshore business activities, they already accumulated 900 million deficit in 2009/2010 scandal. I always thought they are paid to teach, seems not

  8. #18

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    Quote Originally Posted by David Smith:
    I don't buy that. It is not particularly difficult to move money from one UK bank account to another. Generally takes a day. It is true if there are large amounts, then these days the banks may have some pesky anti-money laundering rules to check through first.
    I'm not sticking up for Cameron or anything, just summarising what he said. I believe it was foreign currency that's being moved around and having it offshore was to circumvent currency controls.

    This whole "Panama Papers" affair reeks of some government's attempt to score points. The revelations so far seem suspiciously devoid of American citizens. Word on the street was that Mossack Fonseca's US office in Nevada (which isn't mentioned on their website) had received an anonymous tip off to "reorganise" their files.

    So the question is: what do you have to hide?
    I suspect that Cameron may have a company/fund or two offshored somewhere under his own name. The revelations about his father's dealings are a warning shot since Cameron lost UK's number one lapdog status to Hollande's France. Cameron's eagerness to join the AIIB and Osborne's "We want to be China's best friend in Europe" lost them brownie points with the powers that be.
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  9. #19

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    Quote Originally Posted by hullexile:
    Yes Cameron is saying all taxes were paid. So I am confused as to the purpose of setting up a company in a tax haven if not to avoid tax? Honest question, not sure what I am missing.
    Companies set up in tax havens are often simplier to run. For example, a HK incorporated company requires a company secretary whereas Seychelles incorporated companies don't. Furthermore, paying taxes is much more clear as you'd pay HK profits tax and wouldn't need to worry about Seychelles tax. The paperwork is pretty straightforward and it's honestly a quality of life thing, just so much easier, especially when it comes to transferring shares.
    Last edited by Viktri; 26-04-2016 at 11:02 AM.
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  10. #20

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    Quote Originally Posted by Viktri:
    Companies set up in tax havens are often simplier to run. For example, a HK incorporated company requires a company secretary whereas Seychelles incorporated companies don't. Furthermore, paying taxes is much more clear as you'd pay HK profits tax and wouldn't need to worry about Seychelles tax. The paperwork is pretty straightforward and it's honestly a quality of life thing, just so much easier, especially when it comes to transferring shares.
    But if they're doing business in Hong Kong, they still need to get a BR. Then do they need to register as a HK Ltd there by negating co. sect. expense?