It takes a financial expert to decipher what goes on in the murky world of taxes, but since the Panama Papers leaked everyone's taking a keen interest in what having an offshore investment really means. So do the revelations affect us?
What's it all about?
11.5 million documents belonging to a legal firm based in Panama called Mossack Fonseca were leaked earlier this month. They reveal how some of the world's richest people are accruing even more money by setting up companies in countries where they don't need to pay tax, albeit legally.
Ah, that old chestnut. So?
The people in question include heads of state from all over the world and their relatives, among them one Ian Cameron, the Prime Minister's late father. He set up an offshore trust in the Bahamas that hasn't paid tax in 30 years.
That's not a great look...
It's not, particularly given that Cameron has previously vowed to clamp down on endeavours like this, using the now famous phrase "morally wrong". The worst bit is that it took him five days and repeated questioning to admit he himself had owned shares in his dad's company, however he sold them for £30k (at a profit of £19k) in the lead up to becoming Prime Minister. Hence the protest outside Downing Street on Saturday April 9th, when thousands gathered calling for his resignation.
Should we be angry?
Let's put it this way - the wealthy non-UK citizens who buy London homes through offshore companies are exacerbating the housing crisis. Not only does it encourage the increase in property prices, but it bypasses property tax which could otherwise be put towards building affordable housing. To add insult to injury many of these homes sit empty. Among the individuals named in Mossack Fonseca's documents is Syria's dictator Bashar al-Assad, believed by many to have started the country's civil war. He owns six luxury flats in the capital.
Meanwhile large organisations are still getting away with not paying corporation tax. One example are Caffe Nero. Despite raking in sales of £1.2 billion they haven't paid taxes since 2008, thanks to having their headquarters in the Isle of Man, another tax haven.
Overall, not brilliant for the PM to have profited from an offshore investment then?
Of course, there isn't a direct link between Mr Cameron's shares and the impossibility of getting on the property ladder, so let's not point any fingers. Or should we? Leave us a comment on Twitter, Google+ or Facebook.
