March 4, 2026, 1:34 p.mMarch 4, 2026, 1:34 p.m
The first trial on German soil following the publication of the so-called “Panama Papers” has begun at the Cologne Regional Court.
Panama is considered a tax haven.Image: EPA EFE
The defendant is a 56-year-old Swiss man who is said to have helped many people in the Cologne area to evade taxes. He admitted his complicity and said he regretted it. According to the indictment, the amount involved is 13 million euros and the crime occurred between 2002 and 2019. Seven days of trial are scheduled for the trial.
The public prosecutor’s office accuses the defendant, who lives in Switzerland, of forming criminal organizations and aiding and abetting tax evasion in two cases. He is said to have been a member of a group of companies, together with others who were separately prosecuted, that brokered so-called offshore companies based in Panama or other countries known as “tax havens” to private individuals for a fee.
An essential part of the services offered was the concealment of the beneficial owners of these companies, according to the indictment. The companies did not conduct any operational business, but served almost exclusively to conceal cash flows and capital investments.
Tax damage of around 13 million euros
According to the public prosecutor’s office, the companies were used by the beneficial owners to commit various economic and tax crimes, and for German customers mainly for tax evasion. The offshore companies are said to have acted as owners of bank and custody accounts whose capital gains were not properly taxed in Germany.
The tax damage estimated in the indictment in connection with 50 offshore companies amounts to around 13 million euros (around 11.8 million francs).
In a statement presented by his defense, the defendant appeared to be insightful and admitted complicity in the events. He accepted this with approval; After all, he knew that crimes could take place. He regrets his complicity.
“Panama Papers” disclosed 10 years ago
In the spring of 2016, the “Süddeutsche Zeitung” and other media outlets from the Network of Investigative Journalists (ICIJ) disclosed the business of the shell companies founded in Panama. As a result of a huge data leak, 11.5 million documents were leaked to the newspaper. Almost 400 reporters from more than 80 countries took part in the research.
Among other things, the names of 140 politicians and close confidants appeared. In Iceland, the publication led to the resignation of Prime Minister Sigmundur Gunnlaugsson. In Pakistan, Prime Minister Nawaz Sharif was removed from office.
The ICIJ received the highest award in US journalism, the Pulitzer Prize, in 2017 for the revelations of the “Panama Papers”. The revelations triggered tax investigations in many countries and subsequently led to additional tax revenue amounting to millions in Germany. (hkl/sda/dpa)