The Australian Taxation Office is currently probing more than 800 rich Australians taxpayers after Panama law firm, Mossack Fonseca, has recently released unparalleled tax evasion records. The individuals were identified as high net wealth clients of a law firm in Panama.

BBC News reported that ATO said it has managed to link more than 120 people to an associate offshore service provider situated in Hong Kong, although the tax office did not disclose the name of the company. ATO is working closely with the Australian Crime Commission, Australian Federal Police, and other pertinent agencies - which in some cases may be referred to as the Serious Financial Crime Taskforce.

Deputy Commissioner Michael Cranston of ATO said  the message is clear and that taxpayers can't rely on an arrangement being kept secret. Governments across the globe are also probing possible financial wrongdoing committed by the rich and powerful following a leak of four decades of records from a Panamanian law firm that specialized in establishing offshore companies.

According to The Sydney Morning Herald, the documents showed how Mossack Fonseca forestalled Australian regulators and police inquiries; lobbied actively to thwart Australia from signing agreements that would allow the exchange of tax information; and continued to act for people accused of embezzlement and fraud.

While many corporations and investors who utilize tax havens have legitimate reasons to use these structures, the leaked documents reveal that some companies domiciled in tax havens were being used for suspected arms, drug deals, tax avoidance, and money laundering.

Mossack Fonseca, which says it has established more than 240,000 offshore companies for clients internationally, denied any wrongdoing and called itself the victim of a campaign against privacy. The law firm also said that media reports had "misrepresented the nature of their work", reports Reuters.

Australia, Netherlands, Sweden and Australia, were among other nations who said they had begun the probing the allegations based on more than 11.5 million documents. Banks also came under the spotlight over accusations that they helped clients hide their wealth offshore.