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Cyprus Confidential: A Haven for Tax Evasion and Money Laundering

Cyprus Confidential

An investigative report titled “Cyprus Confidential,” jointly conducted by The Indian Express and ICIJ, sheds light on Cyprus emerging as a preferred destination for affluent individuals globally, including prominent Indians, engaging in tax evasion and money laundering activities.

Attracting Wealth through Favourable Conditions:

Cyprus allures investors by offering advantageous conditions, such as zero estate duty and no trust registration requirements, alongside the Golden Passport scheme. Despite being an EU member, Cyprus has become a financial center frequented by Russian oligarchs, enabling illicit activities like tax evasion and money laundering.

Understanding Tax Havens and Evasion:

Tax havens are jurisdictions with extremely low tax rates. Tax evasion constitutes a criminal offense wherein individuals, corporations, or entities employ illegal means to evade taxes, concealing or misrepresenting their genuine financial status.

Staggering Global Tax Losses:

The State of Tax Justice Report 2023 predicts that countries worldwide are set to incur losses amounting to $4.8 trillion due to tax havens over the next decade. This staggering figure equates to the GDP of Japan, the third-largest economy globally.

Past Revelations on Tax Havens:

The investigation joins a string of previous exposes on tax havens:

  • Offshore Leaks in 2013
  • HSBC Swiss Leaks in 2015
  • Panama Papers in 2016
  • Paradise Papers in 2017
  • Pandora Papers in 2021

Geographical and Cultural Nexus:

Geographically situated in the eastern Mediterranean Sea, Cyprus stands south of the Anatolian Peninsula and east of the Levant. While its geographical alignment is within Western Asia, the country maintains strong cultural ties and significant geopolitical associations with Southeastern Europe.

Read Also: Exercise MITRA SHAKTI-2023

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