President Barack Obama told reporters that the U.S. Treasury and Internal Revenue Service are working to stop large companies from moving their headquarters overseas to avoid tax. Obama said many companies are taking advantage of loopholes in the system resulting in the diversion of trillions of dollars away from important causes. According to Obama, only the Congress can end this problem by closing the legal loopholes. The Panama Papers leak includes 11 million documents from a Panama law firm, and has exposed tax avoidance by former and current heads of state, such as the Prime Minister of Iceland, who resigned as result.

SOURCE: The Independent