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Berlin gets go-ahead to go after tax-dodgers

The German authorities are investigating a thousand wealthy tax-payers suspected of transferring funds to trusts in tax haven Liechtenstein. Among the suspects is Klaus Zumwinkel, CEO of Deutsche Post, who resigned on February 15. The daily backs the German authorities' probe. "Germany's problem with evasion is partly the fault of its tax system. Although the abolition of wealth tax has improved matters, marginal income and inheritance tax rates for high earners approach 50 per cent. Tough enforcement will never stop evasion if taxes are punitive. But governments are right to insist that those who live in a country, and benefit from public services, pay tax. That means they have to act against jurisdictions such as Liechtenstein that abet evaders."

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