(Paris) The former head of the International Monetary Fund (IMF) Dominique Strauss-Kahn founded the companies through which he is paid for his work as a speaker and consultant in the journalistic investigation, according to a broadcast on France 2 in countries with favorable taxation the “Pandora Papers” participated.
Posted on Oct 4, 2021 at 12:46 pm
This investigation, which involved around 600 journalists from the International Consortium of Investigative Journalists (ICIJ), relied on around 11.9 million documents from fourteen financial services companies and uncovered more than 29,000 offshore companies, some of which were used for tax evasion purposes.
Among these documents, the Cash Investigation program examined the accounting elements of the Parnasse International company, founded in May 2013 by the former French socialist minister.
It is based in a free zone of Morocco, Casablanca Finance City (CFC), which allowed it full corporate tax exemption for five years and an 8.75% cap thereafter, according to Cash Investigation.
Other documents show that Dominique Strauss-Kahn also acted as an advisor to Morocco from 2012 to 2013 on “refining the legal framework of the CFC” and paid 2.4 million euros for it, reports Cash Investigation, which never speaks of illegality.
DSK rejected these questions in a tweet. “When malice becomes a lie. Your team of experts could have proven that I have been taxable in Morocco since 2013 and that I will pay my taxes there up to 23.8% of my profit or 812,000 euros for the years 2018, 2019 and 2020 ”, he writes.
When asked by AFP, his lawyer Me Jean Veil did not comment.
Morocco has just been removed from the gray list
After several years of surveillance, Morocco was removed from the European Union’s gray list of non-cooperative legal systems for tax purposes in early 2021.
The Cash Investigation also points to the formation of Parnasse Global Limited in April 2018 in the United Arab Emirates. In this country where there is no public company register – an element of opacity that is conducive to tax evasion – DSK’s company pays no taxes.
These two companies receive fees from DSK for the conferences it hosts worldwide and for advising companies and executives.
In evidence, Cash Investigation confirms that the Congolese President Denis Sassou-Nguesso in particular advised the IMF to support the cause of the highly indebted country of the Congo.