"The most shocking thing about the Panama papers is not the likely criminality and drug laundering, but that it is legal.  It is legal in most countries to set up an ‘offshore’ account for a company or trust as long as the directors are not ‘resident’ in the country where taxes should be paid. The company may be subject to local taxes but these are minimal or non-existent..."

A good post with facts and a solution

Opening the Panama Canal