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Luxleaks whistleblowers trial begins in Luxembourg | |
(about 11 hours later) | |
Three Frenchmen have gone on trial in Luxembourg accused of leaking thousands of confidential documents revealing corporate tax deals. | |
The LuxLeaks scandal cast light on how the small country helped giant companies slash their global tax bills. | The LuxLeaks scandal cast light on how the small country helped giant companies slash their global tax bills. |
Two ex-employees of accounting giant PricewaterhouseCoopers (PwC) and a journalist are on trial. They could face up to 10 years in jail. | |
The government and companies named say their tax practices are not illegal. | |
It was the biggest leak of its kind until the Panama Papers this year showed how the rich and powerful use tax havens to hide their wealth. | It was the biggest leak of its kind until the Panama Papers this year showed how the rich and powerful use tax havens to hide their wealth. |
Q&A: Panama Papers | Q&A: Panama Papers |
How assets are hidden and taxes dodged | How assets are hidden and taxes dodged |
Antoine Deltour, a former auditor at PwC, is accused of passing information on clients to French journalist Edouard Perrin, who first broke the story. | Antoine Deltour, a former auditor at PwC, is accused of passing information on clients to French journalist Edouard Perrin, who first broke the story. |
Mr Deltour faces charges of theft, revealing business secrets, violation of professional secrets and money laundering. | Mr Deltour faces charges of theft, revealing business secrets, violation of professional secrets and money laundering. |
Raphael Halet, the other former PwC employee, is suspected of a separate leak and faces the same charges. Mr Perrin is accused of being an accomplice. | Raphael Halet, the other former PwC employee, is suspected of a separate leak and faces the same charges. Mr Perrin is accused of being an accomplice. |
Public interest | Public interest |
Prosecutors say that together the data was later used by the International Consortium of Investigative Journalists in their November 2014 story. The tax breaks involved 340 companies. | |
While Luxembourg has laws protecting whistleblowers, they are confined to exposing illegal practices. Civil rights groups have attacked the case. | While Luxembourg has laws protecting whistleblowers, they are confined to exposing illegal practices. Civil rights groups have attacked the case. |
"Deltour should be protected and commended, not prosecuted. The information he disclosed was in the public interest," said Cobus de Swardt, the Managing Director of Transparency International. | "Deltour should be protected and commended, not prosecuted. The information he disclosed was in the public interest," said Cobus de Swardt, the Managing Director of Transparency International. |
Mr Deltour told AFP news agency he had no regrets. Nearly 130,000 people have signed an online petition in his support. | |
The scandal put pressure on European Commission President Jean-Claude Juncker, who led Luxembourg when many of the tax breaks were implemented. | The scandal put pressure on European Commission President Jean-Claude Juncker, who led Luxembourg when many of the tax breaks were implemented. |
He has denied wrongdoing and has backed new EU rules to make corporate taxation more transparent. |