Since the start of the Panama Papers coverage, about5A year has passed2021counter for years (following a number in the hito-futa-mi counting system)10month3On April 1, 2011, a report was published on financial transactions using tax havens (tax havens).Pandora's box(*1)International Union of Investigative Journalists (ICIJ) Exposed by the2016The release of the Panama Papers, the biggest leak and largest investigative report ever, surpassing the Panama Papers released in 2006, has led to a number of global political andJapanese card gameThe documents revealed the hidden wealth held by these individuals. Numerous heads of state and government, as well as celebrities from many countries, including Japan, are named in the documents. The rich are getting richer and richer, and the inequality in society is increasing.economic systemHow was this case, which was supposed to have triggered a major stir in the "Mere Old Man" in the United States, reported in Japan? In this article, we will explain in detail what the PANDORA Papers are and explore how they were reported by comparing them with the Panama Papers, which are said to have received a relatively large amount of media coverage.

Photo by Anna Netsu

Tax Haven Issues and Past Leaks

What is a tax haven anyway? In the pastGNV(at sentence-end, falling tone) indicates a confident conclusionarticleBut I've explained it in detail,tax havenOr offshore financial centers generally refer to countries or regions that have very low or no corporate income taxes on foreign companies and corporations. One of the characteristics of tax havens is the secrecy of information. Disclosure of information about companies established in tax havens and their owners is restricted. Individuals and companies from all over the world are therefore used for tax avoidance and evasion. In addition to tax-related activities, it is also possible to evade tracking and hide funds, evade regulations and procedures related to finance and other matters, and engage in money laundering and other criminal activities. There aretrial calculationAccording to the Global Economic Activity Index (GEI), approximately10%are said to be transferred to tax havens.

As one of the necessary elements in the use of tax havens,paper company (i.e. existing "only on paper")A paper company is a company that is registered as a legal entity but has no actual business activities. A paper company is a company that is registered as a corporation but has no actual business activities. Companies establish paper companies in tax havens to hide the actual owners and transfer profits. In this way, they can avoid taxation, evade regulations, commit crimes such as money laundering, and hide their assets.In addition, individuals or companies that use the system may set up a fund in a tax haven or use a trust company to hold their assets. In addition.and tax haven infrastructure.Offered by.are law firms, accounting firms, large banks, etc.

So why are tax havens a problem? One of the major problems is that taxes, which are supposed to enrich society as a whole, are not collected equally. By using tax havens, wealthy individuals and corporations avoid paying hundreds of millions of dollars worth of taxes.2016tax revenues that should have been obtained in all countries in the world in 2006.2Studies show that more than US$100 billion was not collected.Published.The question is: Who pays the taxes that the wealthy evade paying? So who pays the taxes that the property owners evade paying? It is the rest of the citizens who do not have large assets. Tax havens are only available to the wealthy who own large amounts of assets.

The port of Monaco, one of the most famous tax havens (Photo: Mike McBey / Flickr [CC BY 2.0])

Moreover, the secrecy of information makes it impossible for a third party to check whether wealthy individuals are even paying the appropriate taxes if their assets are hidden in tax havens. This secrecy makes the problem of tax havens invisible and makes it difficult to know whether tax evasion is occurring or not. In addition, these tax haven problems are particularly damaging tolow income countryThe more stable a country's economy is, the more important public servants become. The less stable the economic foundation of a low-income country, the more important infrastructure facilities such as roads, schools, and hospitals are, as well as the teachers, health care workers, and other public servants who work there. Nevertheless, taxes, which are essential to cover public spending, are not collected equally. Especially in low-income countries with comparatively weak legislation and checks, foreign-owned companies use tax haven mechanisms,illegal capital outflowThe case is particularly intense in the cases where they let the

It is not only the tax collection aspect that is problematic. Tax havens can also be used to evade regulations and other restrictions that would otherwise be imposed on ordinary corporations and individuals. For example, they could evade labor law-related regulations and reduce the level of wages and securitycase (e.g. receptacle, condition, event, legal action, letter style, etc.)have been reported. In addition, banks have taken advantage of information opacity to circumvent regulations and make investments that would otherwise be prohibited due to their high risk.Sometimes they do.. Thus the inequality between the rich and the not-so-rich is becoming deeper and deeper.

Based on data from whistleblowers, revelations of transactions using tax havens have occurred frequently in the past, many of them by the ICIJ, which was introduced at the beginning of this report. The following are some of the major ones.

The first survey was conductedOffshore Leakswas called. This is2012counter for years (following a number in the hito-futa-mi counting system)11with the moon2013counter for years (following a number in the hito-futa-mi counting system)4Month of2over a period of ...ICIJwas exposed by the data leaked from Portcullis Trust Net and Commonwealth Trust Company. Next.2014counter for years (following a number in the hito-futa-mi counting system)1In June, as part of the Offshore Leaks, the names of people in China, Taiwan, and Hong Kong who own offshore companies were alsoPublished.The following is a list of the most common problems with the2014counter for years (following a number in the hito-futa-mi counting system)12Month ofLuxembourg Leaks.(LuxLeaks) reveals the tax incentives given by the major accounting firm Price Waterhouse Coopers and the Luxembourg tax authorities. Also.2015counter for years (following a number in the hito-futa-mi counting system)2Month ofSwiss LeaksThe British financial giantHSBCThe company was found to have assisted in tax avoidance and evasion conducted by the

2016counter for years (following a number in the hito-futa-mi counting system)4In June, information was leaked from the Panamanian law firm Mossack Fonseca, the largest leak at the time.Panama Papershas begun reporting on the 2016counter for years (following a number in the hito-futa-mi counting system)9In May, the report contained information on corporations in the Bahamas, a tax haven located in the Caribbean Sea.Bahama Document It has also been about2017counter for years (following a number in the hito-futa-mi counting system)11In May.Paradise DocumentThe leaked deal from Applebee's, a major law firm, was revealed in the The latest leak, prior to the Pandora document, was2020counter for years (following a number in the hito-futa-mi counting system)9Month ofFinsen DocumentSo, the U.S. Financial Crimes Enforcement Network Division (FinCENThe leaked report of bad faith submitted to the (NBF) has revealed the The fact that the world's major banks were allowing money laundering and financial crimes to go unchecked has come to light.

What is the Pandora Document?

Next, the latest leak of thePandora's boxThe following is an explanation of what the The Pandora document is a5This is the largest leak ever, surpassing the size of the Panama Papers two years ago, and includes documents, images, emails, etc.1,190More than 10,000 cases,2.94The data is as large as a terabyte.14Accounting firms, law firms, consulting firms, and other intermediaries in theinstitutionThe data was leaked from theICIJand150belonging to a news organization in the600With the help of more than two dozen journalists,2The information was analyzed over a period of two years. The Pandora documents are35The current or past head of a person,91in a country or region.330The document reveals tax haven transactions by more than 2,000 politicians and bureaucrats, as well as wealthy individuals, corporations, entertainers, and criminals, and the number of paper companies listed in the document.29,000It extends over more than

The names of the leaders mentioned in the Pandora document include King Abdullah of Jordan2Seyi bin al-Hussein, Ukrainian President Wlodimir Zelensky, Kenyan President Uhuru Kenyatta, Ecuadorian President Guillermo Lasso, Czech Prime Minister Andrej Babiš, and Chilean President Sebastián Piñera are among those listed. Other names listed included former British Prime Minister Tony Blair, a close associate of Russian President Vladimir Putin, and the son of Azerbaijani President Ilham Aliyev. Celebrity names also included musicians such as Ringo Starr and Elton John, and model Claudia Schiffer. In Japan, Masayoshi Son (Chairman and President of Softbank Group), Takeo Hirata (former Executive Director of the Tokyo Olympics Paralympics Headquarters, Cabinet Secretariat), Takao Yasuda (Founder of Don Quijote), and Taketo Hara (Chairman of Mirai Trust) were among the names listed.Raised.The following is a list of the most common problems with the 

The derivative cases affected by the Pandora document are1Several have occurred in less than a month. The ruling party, led by Czech Prime Minister Babiš, named in the document, was defeated in the lower house elections, and the party is now in the process of changing governments.Connected.The Chilean Congress has voted to impeach President Piñera. In the lower house of the Chilean Congress, the impeachment of President Piñera wasPassed.The Senate, where the ruling party has a majority, eventually passed an impeachment bill. In the end, the Senate, in which the ruling party has a majority, passed an impeachment billRejected.is one of the major derivatives of the Pandora dossier. President Lasso of Ecuador is to be investigated for tax evasion.To be determined.The following is a list of the most common problems with the 

In the U.S., the Pandora document has prompted Congress to pass a bill to force trust companies, law firms, and other intermediaries to investigate whether they have foreign clients who are trying to transfer their assets into the country.Submitted.The European Parliament has also passed a resolution to investigate the fraud revealed by the Pandora document. In addition, the European Parliament passed a resolution to proceed with an investigation into the irregularities revealed by the Pandora document, as well as a resolution to request that the European Union, which has not correctly implemented current legislation (EU) resolution for the European Commission to take legal action against the Member States.Adopted.There have also been several developments outside of the political world. As a result of documents containing information about art dealer Douglas Latchford, it was discovered that cultural property looted from an ancient Cambodian site had been transferred to the control of a tax haven trust and would be returned to CambodiaDetermined.We can expect to see more social incidents affected by the Pandora document in the future.

Pandora Document Press Comparison and Analysis

How were the events related to the Pandora Document, the largest-ever leak and various accompanying incidents concerning tax havens, a huge international problem that contributes to inequality in the world, reported in Japan? In the past, there have been relativelyreportedLet's look at it in comparison to the Panama Papers-related coverage. In this case, the Asahi Shimbun, the Mainichi Shimbun, and the Yomiuri Shimbun3After the Panama Papers and Pandora Papers were first reported by the company30Days (*2The target articles are those that were published in the "PANDORA Documents" or "Panama Papers" or "Tax Avoidance Sites" section of the website. Articles containing the words "Pandora Papers" or "Panama Papers" or "tax havens" were searched, and of those articles, those that contained references to the Pandora Papers or Panama Papers were2We extracted those with more than one sentence (*3(See Figure 1.). Derivative incidents generated by each document are also included in the count.

As a result of the count, in the Panama Papers, the number of articles is Asahi Shimbun49 casesMainichi Newspapers59 casesThe Yomiuri Shimbun61 casesIn contrast, in the Pandora document, the Asahi Shimbun11 casesMainichi Newspapers4 casesThe Yomiuri Shimbun1 caseand a significant decrease in the amount of news coverage. The difference is not only in the coverage itself, but also in the articles providing commentary on the documents and tax haven issues, as well as in editorials. In the case of the Panama Papers, the Asahi Shimbun1 caseMainichi Newspapers2 casesThe Yomiuri Shimbun5 caseswhile in the Pandora document, there were 1 case from Asahi Shimbun, 0 case from Mainichi Shimbun, and 0 case from Yomiuri Shimbun.the aforesaidThe editorial was "The Panama Papers. As for editorials, the Asahi Shimbun2 casesMainichi Newspapers2 casesThe Yomiuri Shimbun1 caseWhile the number of articles in the Pandora document is the number of articles in any newspaper0 casesThe first time the company was in

A distinctive feature of the Panama Papers coverage was the international reaction and related coverage. of the Panama Papers release.11days later.2016counter for years (following a number in the hito-futa-mi counting system)4month14Held onG20Finance Ministry and Central Bank Governors' Meeting Discusses Tax Haven Issues, Asahi Shimbun4 casesMainichi Newspapers6 casesThe Yomiuri Shimbun5 casesand a good number of articles have been published. In response to the Panama Papers, the Organization for Economic Cooperation and Development (OECDis2016counter for years (following a number in the hito-futa-mi counting system)4month13The Asahi Shimbun also reported that an emergency meeting of tax authorities of various countries was held on April 1, 2011, and the Asahi Shimbun4 casesMainichi Newspapers3 casesThe Yomiuri Shimbun6 casesand counted.

Although there were no major economic conferences at the time the Pandora document started to be reported,OECDThe minimum corporate tax rate at15%The agreement that136between countries.2021counter for years (following a number in the hito-futa-mi counting system)10month8on the dayagreedThe agreement, which is designed to prevent tax evasion, received little media coverage in connection with the Pandora document, however. The Asahi Shimbun carried a front-page story on the minimum corporate tax rate, but did not mention the Pandora Document.No mention of it.In an article about a person/company named in the Pandora document in Japan, the article in the society page discusses the agreement on the minimum corporate tax rate.Mentioned.The Mainichi Shimbun mentions the minimum corporate tax rate on its general page. The Mainichi Shimbun mentions the minimum corporate tax rate in its general section, but the Pandora document does not mention it.untouchedAlso, the Yomiuri Shimbun had news of the minimum corporate tax rate as the topic of an editorial, but the Pandora document was never mentioned.There wasn't.The following is a list of the most common problems with the

As for the Japanese celebrities named in the Pandora document, the results are also quite low in the amount of coverage. The only Japanese celebrities mentioned were the Asahi Shimbun's1 caseonly, and only Mr. Masayoshi Son, Mr. Takeo Hirata, and Mr. Taketo Hara were mentioned.3They were two people. Although it was revealed that Mr. Son had his subsidiaries set up in tax havens, while Mr. Hirata and Mr. Hara had their corporations set up in tax havens,3We merely described how all of the three members explained that they did not set up the company for the purpose of tax avoidance,3There was no deep dive into the economic activities of the names. In the Mainichi and Yomiuri newspapers, there were no references to Japanese celebrities named in the document. 

Hearing on the Panama Papers in the EU, with journalists (Photo: The Left / Flickr [CC BY-NC-ND 2.0])

There are also differences in coverage of derivative incidents related to the respective documents. In the Panama Papers, for example, former Icelandic Prime Minister Sigmundur Dávid Gunnlaugsson resigned as a result of the Panama Papers, but this news was reported in the Asahi Shimbun3 casesMainichi Newspapers1 caseIn the Yomiuri Shimbun.4 casesThe Panama Papers were reported in the media. The events related to former British Prime Minister David Cameron, such as his pursuit in Parliament and decline in popularity, were also reported by the Asahi Shimbun1 caseMainichi Newspapers5 casesThe Yomiuri Shimbun7 casesIt was reported. Other Argentine presidents (Asahi)1 caseand the European Football Confederation (Asahi)1 caseDaily1 caseReaders.1 case), major banks (daily)2 cases), law firm (daily)1 caseReaders.2 cases), Financial Institutions (Asahi)1 caseIn the PANDORA Document, the news of the investigation into the Czech Republic's lower house election was reported in the Asahi Shimbun newspaper. On the other hand, in the Pandora document, news of the defeat of the ruling party in the Czech lower house election was reported in the Asahi Shimbun1 case, in the Mainichi Daily Newspaper.1 caseThe Asahi Shimbun reported the news of the return of Cambodian cultural properties to Japan.1 caseIt has only been reported in the press.

The trend of lack of coverage of the Pandora document in media media outlets other than newspapers also remains the same. With regard to TV news,NHKComprehensive, Monday through Friday.21from time to time1Newswatch on the hour9So, from the start of the Pandora document coverage10I checked the daily broadcasts and found that the one that discusses the Pandora document is0 casesIt was a In addition, a chat application, thelinewhich collects and disseminates news from a number of media outlets.LINE NEWSof which have been carefully selected.1day (of the month)24Article SelectedLINE NEWS DIGESTBut the reference to the Pandora document0 casesThe first time this happened was in In addition, the online media outlet HuffPost, the "tax haven"tagI searched for articles with18 caseswere hit, of which the one that mentions the Pandora document0 casesThe first time the company was in

Why is the Pandora document not being reported?

Why did the Pandora document, which must have had a great social impact, receive so little press coverage? Let us look at some possible reasons. First, as can be said for both the Pandora and Panama Papers, tax haven issues are difficult to report in the first place. This is because topics related to long-standing structures and systems, such as tax havens, are less likely to attract media attention than one-off incidents. The aforementioned secrecy of information also contributes to the difficulty of reporting. That is whyICIJThe Panama Papers and the Pandora Papers are the result of several years of information gathering by institutions such as

Reporter taking notes (Photo: Roger H. Goun / Wikimedia Commons [CC BY 2.0])

Next, we will discuss some of the reasons why the Pandora Dossier was not reported when compared to the Panama Papers. In this regard, to begin with, the Pandora dossier received less coverage than the Panama Papers, not only in Japan but also around the world (see*4(See Figure 1.). So why was there a difference in the amount of coverage of the Pandora Papers and the Panama Papers worldwide? Let us explore some possible reasons.

First, it can be pointed out that the politicians mentioned in the documents are differently known. In the Panama Papers, the names of politicians who usually attract attention in the international political arena, such as the husband of Chinese President Xi Jinping's sister, a close friend of Russian President Vladimir Putin, and then-incumbent British Prime Minister David Cameron, were listed. However, while the Pandora dossier mentions the names of those around Russian President Vladimir Putin, the other heads of state and government are from countries that do not usually receive much attention in the press. Whether or not the countries are usually the focus of media attention is thought to have influenced the differences this time around.

For other possible reasons,ICIJI asked Shira Aletti, a reporter for the She pointed out that there were a number of derivative cases that were media-friendly at the time of the Panama Papers, and that the public reaction to these cases was significant. In the case of Iceland, for example, former Prime Minister Gunnlaugsson, who was named in the Panama Papers, turned his back to the camera and walked away during an interview about the tax haven issue.scenehas been widely reported. She said that in a highly democratic country like Iceland, the anger of the people, who felt betrayed by the prime minister, was great, including the appearance of the prime minister. In fact, there were demonstrations so large that they filled the streets in front of the parliament, and these demonstrations were also widely reported by the media.Reported in.The Panama Papers were also reported in the United States. Elsewhere, a few days after the Panama Papers report began, former U.S. President Barack Obama held a press conference to address the tax haven issue.He called out.Aletsch notes that this was also a high-profile event.

Demonstration in Reykjavik, the capital of Iceland (Photo: Art Bicnick / Flickr [CC BY-NC-SA 2.0])

On the other hand, she says, the Pandora dossier did not generate much of this reaction from society. For example, with regard to Czech Prime Minister Babiš, who was named in the Pandora report as a government official, the ruling party led by the prime minister lost the lower house election as a result of the Pandora report, but there were no major demonstrations or other events. In the Kingdom of Jordan, where the government directly or indirectly owns much of the domestic media, the Pandora dossier has not been reported.They were shut out.The Jordanian government is not a party to the Pandora document. Thus, Aletsch notes that the people have no way to access information such as the Pandora document in the first place, and therefore no reaction to the Pandora document occurs within Jordan.

Further,GNVis that Japan's international reporting usually follows the Western media.Pointed out.The Panama Papers and the Pandora Papers The Japanese media coverage of the Panama Papers and Pandora Papers also showed this characteristic. As mentioned above, the Panama Papers, which received a strong response in Europe and the U.S., were covered extensively in Japan, while the Pandora Papers, which received little response, were not reported as much.

Toshihiro Okuyama, a reporter for the Asahi Shimbun newspaper who has been involved in many reports on tax haven issues, said that the Panama Papers received a large amount of coverage not because of the documents themselves, but because many articles were written in response to them. According to him, the Panama Papers did not generate much of a reaction in Japan when they first began to be reported,3, ,4After a day or so, he feels that there has been a significant response in Japan in the form of imported Western reactions. By reaction here, he refers to the amount of posts on the Internet, such as Twitter posts by people checking news out of the country, as well as the amount of articles sent in from the field by foreign correspondents of newspapers, he said. Okuyama also points out that the presence or absence of a move by the U.S. president, such as Obama's press conference, also has an impact on the size of the reaction. In fact, the Asahi Shimbun, shortly after it began reporting on the two documents, reported3Looking at the volume of media coverage during the two days, Mr. Okuyama recalls that there was more coverage related to the Pandora Papers than to the Panama Papers. However, at the time of the Panama Papers, the world's reaction to the coverage was so great,4He stated that the amount of coverage may have been reversed after the second day.

Czech Prime Minister Andrej Babiš, whose name is mentioned in the Pandora document (Photo: ALDE Party / Flickr [CC BY-NC 2.0])

We also asked him about the point that the Pandora document was not widely reported, despite the fact that the names of people such as Mr. Son, who are also very influential in Japanese society, were listed on the document. Mr. Okuyama stated that the mere presence of a name on a document is not enough for major coverage because "it is impossible to undermine the defense of the other party (the person named in the document) that they are not evading taxes" without access to information beyond the name on the document. He said that previously, under Japanese law, the amount of taxes paid by individuals with large incomes was made public, but since the publication system was discontinued more than a decade ago, it is no longer possible to know the amount of taxes paid by individuals. This has created a situation where it is impossible to confirm whether or not taxes have been paid, Okuyama noted.

However, the Pandora dossier is not only a tax issue in Japan, but also a huge problem on a global level. In response to the lack of coverage of this aspect of the Pandora dossier, I wonder if, as a Japanese newspaper, there is a tendency to view the Pandora dossier from a domestic Japanese perspective, rather than as a global issue. In fact, Mr. Okuyama states that "the most important thing for a Japanese news organization is to check whether there is any fraud or tax evasion going on in Japan that violates Japanese domestic laws," and that it is important to view the issue from a local Japanese perspective as well as a global one. Mr. Okuyama then called for "no progress in combating tax havens without pressure from international public opinion" and that "Japan should lead the international community in creating a mechanism to combat tax havens.explanatory articleHe noted that it should not be overlooked that the company issued a

Above,3A comparison of the volume of coverage by the two newspapers shows that the Asahi Shimbun has a relatively high volume of coverage, but this is due to the fact that the Asahi Shimbun isICIJandpartnershipThe company has concluded aICIJThis is thought to be due to the ease of access to the articles provided. Thus, in this case, it was easy for Asahi Shimbun to report more information before other companies. However, Mr. Aletsch noted that the attitude of Japanese media organizations is characterized by the fact that they do not often follow other companies' scoops and report them. For example, Western media often follow up on scoops that other companies have already released, citing the names of other companies. Japanese media, on the other hand, are less likely to follow up on a story by citing another company's name, according to Aletsch. Hence, for example, in the case of the past leak (the Finsen documents), it was not the Asahi Shimbun butICIJto inquire about document-related information, but that was not the case with the Pandora document, she recalls.

The interview (Photo: Kristin Wolff / Flickr [CC BY 2.0])

summary

Our exposure to the Pandora document has allowed us to witness the enormous problem of the unequal world that operates in the shadows of the current economic system. This was one of the rare occasions to see how the rich have been profiting from the holes in the system. And this was made possible thanks to many journalists around the world. But how many people are really able to grasp such an important issue?

The current situation of powerful and wealthy people using tax havens to hide their wealth and evade taxes and regulations should be one of the major challenges to the rule of law and democratic principles. The tax haven issue remains one that must be addressed for Japan. Rather than viewing tax havens solely from the perspective of Japan, one of the major roles required of news organizations is to raise the issue as a major challenge for Japan and the rest of the world.

[Correction (November 26, 2021): To avoid misunderstanding, one sentence was added in the section related to interviews with interview collaborators. Other corrections were made in two places regarding the number of commentary articles in the Asahi Shimbun regarding the Pandora document and the explanation regarding the ICIJ].

note (supplementary information) symbol1　It means "a metaphor for something that causes various misfortunes."Pandora's boxIt comes from the "I".

*2　Panama Papers.2016counter for years (following a number in the hito-futa-mi counting system)4month3from the day of2016counter for years (following a number in the hito-futa-mi counting system)5month2day, the Pandora document is2021counter for years (following a number in the hito-futa-mi counting system)10month3from the day of2021counter for years (following a number in the hito-futa-mi counting system)11month1The number of articles published during the day is counted.

*3　Note that those with only a one-sentence reference to the Panama/Pandora Papers and related incidents will not be counted, as they do not play a sufficiently informative role.

*4　A count of the number of articles hit by a keyword search for "Panama Papers" and "Pandora Papers" in the U.S. newspaper The New York Times found that the Panama Papers55The article, The Pandora Document.22The article is an article.

Writer: Anna Netsu

Graphics: Minami Ono

Interview Assistance:Mr. Silla Aletsch(in Japanese history)Scilla Alecci) (ICIJ(See Section 2.1.2.),Toshihiro Okuyama(Asahi Shimbun)

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