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Iceland leader quits over Panama Papers






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The leader of Iceland quit on Tuesday because of a new financial scandal. Sigmundur Gunnlaugsson quit because of secret documents leaked from a Panama law firm. There are over 11.5 million leaked e-mails and letters. They contain information about how thousands of the world's richest and most powerful people avoid paying tax. The documents name over 215,000 companies and 14,153 clients of the Panamanian law firm Mossack Fonseca, including many present and past world leaders. Iceland's leader is the first to resign because of the scandal.

Many governments and celebrities are now trying to keep the scandal from hitting them. British leader David Cameron's father was one of the law firm's clients. Sports figures in the leaks include the new FIFA president, who is shocked that people are questioning his honesty. Mossack Fonseca could also be in trouble. Journalists say it worked with 33 people or companies that were part of international sanctions, including a cousin of Syria's president, and companies in North Korea. A tax expert said there is up to $32 trillion in untaxed financial wealth around the world.

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