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Germany plans new law against offshore companies: Sueddeutsche Zeitung
April 4, 2016 / 7:48 PM / 2 years ago

Germany plans new law against offshore companies: Sueddeutsche Zeitung

BERLIN (Reuters) - Germany is planning a new national transparency register that will oblige offshore companies to disclose the identity of their owners, Germany’s Sueddeutsche Zeitung reported on Monday.

German Justice Minister Heiko Maas arrives for a cabinet meeting at the Chancellery in Berlin, Germany, March 23, 2016. REUTERS/Fabrizio Bensch

The Munich newspaper said the government planned to amend its money laundering law so that it was no longer possible for the beneficial owner of an offshore company to remain anonymous.

“Secrecy has got to stop,” Justice Minister Heiko Maas told the paper, adding that more transparency was an integral part of the fight against tax evasion and terror financing.

The leak of the “Panama Papers” - four decades of documents from a Panamanian law firm specialized in setting up offshore companies - has prompted renewed calls for tougher action against tax abuses.

German Finance Minister Wolfgang Schaeuble said the leak would increase pressure to tackle misuse of tax rules and said additional measures were needed.

“We cannot allow that one part of society works hard, sticks to the rules and pays taxes while another part of society cheats,” Economy Minister Sigmar Gabriel told the Sueddeutsche. “We need to impose a global ban on offshore companies and foundations whose beneficial owners remain anonymous,” he added.

While a national transparency register would not have any bearing on offshore companies in Panama or the Caribbean, its aim is to send a signal to the European Union and other international organizations that Germany is cracking down and others should follow, the paper said, citing government sources.

The European Commission is due to present a planned law on tax avoidance next week, but critics say it would still not stop companies hiding their activities in tax havens outside the EU.

Writing by Caroline Copley; Editing by Mark Heinrich

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