euro|topics - The German tax inquiry is spreading across Europe

Main focus of Wednesday, February 27, 2008

The German tax inquiry is spreading across Europe

German authorities started a major operation tracking down tax evaders ten days ago. On February 26th, the German justice system revealed that 27.8 million euros had already been recovered from defrauders with bank accounts abroad, notably in Liechenstein. It has also given precious information to other European countries that are now also pursuing offenders.

The Times - United Kingdom

The daily points out that "Britain has been dragged into the row [over Liechenstein] after it emerged that the Inland Revenue also paid the whistle-blower £100,000 for a list of about 100 Britons allegedly evading tax. Other countries, especially in Scandinavia, are interested in the list. ... The first disturbing question is whether it is ethical to use intelligence services to spy on a friendly neighbour and to pay for information from a man who stole it from his employers. The payments seem, at the very least, distasteful. ... The role and legitimacy of tax havens needs greater clarity. How should those countries dependent on financial services police their operations to ensure legitimacy? What is clear is that bullying Europe's smallest states is counter-productive. It would be better to persuade them that interdependence is a two-way street, and that change is the best guarantee of good relations with their larger neighbours." (26/02/2008)

El Mundo - Spain

"In the line of fire of fiscal administration there are several Spanish defrauders who placed large quantities of money in Liechtenstein", explains the daily. "Inquiries have been made possible by the information communicated by Germany. ... [The administration] should now decide whether or not to take legal action. Spanish legislation prevents action against potential defrauders if proof is obtained by irregular means. And paying an informer [Germany apparently paid 5 million euros] could be an illegal act. The administration is however keeping its cards close to its chest. It has not divulged the number or names of the Spaniards concerned, or the sums of money they have placed. It should none the less act with the same speed and transparency as Germany, in order to make those who don't respect the law pay the right price." (27/02/2008)

Dagbladet Information - Denmark

Danish Tax Minister Kristian Jensen is hesitating to ask Germany to share information that the German Federal Intelligence Service bought from Liechtenstein, arguing that the files were stolen. Such data could eventually help in filing charges against Danish tax evaders. Bent Winther surmises that Jensen would be less hesitant if the issue were welfare funds or childcare assistance obtained under false pretences. "Instead of shying away from doing something about these wealthy individuals and the information available on them, the Danish government should move ahead, with Germany, against the tax evading countries of Switzerland, Monaco, the Isle of Man, Luxembourg and Liechtenstein. For decades the EU tried in vain to put pressure on these countries to give up their anti-social banking secrecy, which they use to attract enormous sums of illegal, untaxed capital." (27/02/2008)

24 heures - Switzerland

Serge Gumy explains that Switzerland is indirectly targeted by Germany's attacks against Liechtenstein. "Convinced that the storm is bound to break-out over our heads at one time or another, the future leader of the Swiss Socialist Party, Christian Levrat, considers that our country can only survive EU pressure if it resolves to finally pursue the tax evasion that its banks largely thrive on. This would basically boil down to breaking banking secrecy. With his propositions, Christian Levrat is attacking the Swiss safe from the inside, he is even drilling a hole that Brussels might leap through. ... Breaches of the legendary banking secrecy are multiplying, in the name of the struggle against terrorism, for example. The end of banking secrecy is thus only a question of time. Switzerland would therefore be well-advised to succumb to the way the wind is blowing, otherwise it might break." (27/02/2008)

» To the complete press review of Wednesday, February 27, 2008

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