The top five countries of Europe have agreed to automatically exchange data on the ownership of companies, trusts and foundations to clamp down on tax evasion.
Britain, Germany, France, Italy and Spain agreed to create a register that will detail the beneficial owners of companies, trusts, foundations, and shell companies, and will share the data with tax and law-enforcement bodies.
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George Osborne, UK chancellor of the exchequer, said: "Today we deal another hammer blow against those who would illegally evade taxes and hide their wealth in the dark corners of the financial system.
"Britain will work with our major European partners to find out who really owns the secretive shell companies and trusts that have been used as conduits for evading tax, laundering money and benefiting from corruption.
The five countries are now calling for the broader implementation of the pact.
The move on data exchange comes ten days after the Panama Papers leak, which exposed how the world’s richest and most powerful people hide their wealth from the taxman.
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By GlobalDataMany illustrious names and details have been revealed due to over 11m files being leaked from the world’s fourth biggest offshore law firm, Mossack Fonseca (based in Panama with offices in over 35 countries).
The papers were obtained by the German newspaper Süddeutsche Zeitung from an anonymous source and shared with numerous leading media organisations by the International Consortium of Investigative Journalists (ICIJ).
