Leak Scandal: Japan, Panama Agree to Share Data on Offshore Companies

Japan and Panama have reached an understanding on how to share tax and shell firm data after a scandal involving a Panamanian company that allegedly helped clients evade taxes.

TOKYO(Sputnik) — The Kyodo news agency said the deal would be inked as soon as the governments agree on the procedure, which would allow automatic exchanges of data, such as on offshore bank accounts of Japanese companies.

If confirmed, this would be the first tax data sharing pact agreed by Panama in the wake of the so-called Panama Papers scandal, triggered by German newspaper Sueddeutsche Zeitung last month.

The outlet published materials it claimed came from Panama-based law firm Mossack Fonseca that allegedly exposed involvement of the world's wealthy and influential people in offshore schemes.

Mossack Fonseca responded to the April report by refusing to validate the information contained in the leaks and accused reporters of gaining unauthorized access to some of its proprietary documents.