The Panama Papers: Some comments

The leaked Panama Papers (documents recently 'leaked' from the Panama-based Law Firm Mossack Fonseca) are a hugely shocking 'revelations' about tax dodging or concealment of wealth, through establishment of off-shore accounts and entities, by global big names including heads of government/state, high-profile political leaders, top business people, celebrated people from the worlds of sports, show-biz and various other professions. Some of these people have been admonishing others to follow the path of truth, while others have projected themselves as role models. Now, with the balloon burst, a big hole has emerged in the global moral fabric. Of course, the Panama Papers do not constitute legal proof and many of the people whose names are mentioned have been professing innocence. In some cases, it has been announced that probes are being initiated. In one case (Iceland), the Prime Minister has resigned in the face of people's agitation. Indeed, it is the responsibility of the concerned governments to institute thorough inquiry to establish whether nor not the people named are guilty. If a government is reluctant or unwilling to initiate or follow through with proper inquiry, people of the country should demand, through whatever means available to them a la the Icelanders, appropriate inquiry or, if need be, go for public interest litigation. The hacking or leaking of the Panama Papers, which may have been done using unauthorised or illegal methods, has in fact brought to light a possible darker side of the high and mighty around the world.
As for Bangladesh, tax evasion and off-shore accounts and entities with money and assets illegally taken out of the country and pay-offs as well as over-invoicing and under-invoicing are known to be widespread. Also, a large number of people with taxable incomes are not even in the tax net. The government revenue from tax and other collections is at a very low level, only about 12-13 per cent of GDP (gross domestic product), which is the lowest among the countries around us. Moreover, there are people in Bangladesh who are increasing their wealth through illegal means such as grabbing lands, rivers, water bodies, forests, and huge amounts of money from banks (taking dubious loans and not paying back). Moreover, there is often collusion between those acquiring illegal wealth of different kinds and those whose responsibility it is to protect those assets on behalf of the people of the country. Obviously, both are culprits and must be brought to book.
Some names from Bangladesh are now known to have featured in the Panama Papers. The Anti-Corruption Commission has set up a committee to determine this. It is important that the inquiry is carried out effectively leading to logical conclusions and those found guilty, prima facie, are duly dealt with legally. Furthermore, this is necessary in order to discourage others to acquire wealth and money through illegal and unfair means, open off-shore accounts and entities with assets and money illegally taken out of the country, and evade taxes.  The persons involved should be identified and tried. If cases such as Hallmark, Destiny and Basic Bank are dealt with quickly and those found guilty punished in an exemplary fashion, this should act as a deterrent to would-be pursuers of similar illegal means and crimes to enrich themselves.
Bangladesh has recently been doing tremendously well in terms of economic growth, increase in per capita income, and social indicators. Bangladesh's achievements in respect of millennialism development goals (MDGs) have been exemplary. Poverty is down to about 24 per cent and extreme poverty to about 12 per cent, although the numbers are still about 40 million and 20 million respectively. The country is now pursuing the agenda of sustainable development goals (SDGs), adopted by the UN General Assembly in September 2015, along with other countries of the world. In the context of this agenda, particular focus has to be given to the eradication of extreme poverty and significant reduction of multidimensional poverty by 2030. Bangladesh expects to reduce extreme poverty, measured on the basis of cost-of-basic-needs, well before 2030. A goal to become a middle-income country by 2021 has also been pronounced. Both goals are possible, if not by 2021, certainly by mid-2020s, provided the on-going momentum of socio-economic development is not only maintained but also appropriately accelerated.
One of the key elements in support of this journey is adequate resources for investment. Surely, pre-eminence of domestic resources is sine qua non in this regard. For mobilisation of domestic resources, the need is to give particular focus to expansion of tax net and ensuring tax and other revenue receipts as appropriately determined. At the same time, all the stakeholders in the process of sustainable development must come together to make their contributions in relation to resource mobilisation and implementation of action programmes. In this context, policy and institutional cohesiveness is needed so that the socio-economic development process is raised to an upper trajectory within an inclusive framework. The SDG agenda requires that no one is left out. I would add that in this process, no one must be allowed to acquire wealth illegally and evade taxes.
Let me conclude by saying that the Panama Papers have provided an opportunity to the countries of the world, not only to deal with those whose names have appeared as tax-dodgers or money-launderers, but also close all loopholes so that others are not able to commit similar acts. Political and administrative transparency is of high premium in this context.
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