The rich people are removing their money from their own countries and putting that money in other country's banks etc. so they don't have to pay taxes on it.
That means that these rich people are failing to contribute to their country's back bone, the financial foundation of the government and government services. Now that's a bad thing, just based on general principle, when you're a billionaire playboy. But it's much, much worse when you are the leader of a country failing to contribute to your country's financial infrastructure.
And a few leaders in a few countries have gotten their hand caught in this Panamanian cookie jar. The Prime Minister of Iceland, Sigmunder David Gunlaugsson, was forced to resign.
The release of the Panama Papers by the International Consortium of Investigative Journalists is the biggest data leak in history, and this time it’s some of the world’s most powerful people who have cause to worry, with the spotlight finally falling on their own secretive tax arrangements....
If you look at the names of politicians and business leaders in the leaked documents you will see that those benefiting from using tax havens are overwhelmingly male. This perhaps reflects the fact that positions of power are currently mostly held by men.
On the other hand, we know that those who are worst impacted by the consequences of tax dodging are the world’s poorest, who are disproportionately women and girls. Financial secrecy and tax dodging, and the resulting lack of public funds, threatens women’s and girl’s access to public services, increases the care work they do for free and shifts the tax burden onto those who can least afford it.