The tiny principality of Liechtenstein is known as a tax haven. A few months ago an ex-employee at a bank in Liechtenstein apparently leaked details of some bank accounts held by Germans. The German finance ministry has said that they paid €4 million to get details of German accounts held in the tiny country.
To date one German, Klaus Zumwinkel, the former head of Deutche Post, has been hit by the scandal. He resigned from Deutche Post. AFP reports that Germany believes that there are 45,000 trusts with accounts in Liechtenstein and the German tax authorities would like details. Liechtenstein has, so far refused.
Germany might give an ultimatum to Liechtenstein. The German government would like a deal similar to the one that the principality has with the US (and the IRS). Crown Prince Alois told AFP, “Does a state have the right to obtain information by breaking the law in a friendly state and probably also contravening its own laws? Spying on our clients is unthinkable…We are going to see what we can do to protect our citizens and also our investors, who trust us, against such methods of investigation. The principle of confidentiality also applies to our foreign clients.”
[…] allegedly stolen from Credit Suisse. Wolfgang Schäuble, the German Finance Minister, noted that when similar data was purchased on Liechtenstein it resulted in 200 court cases, including the conviction of the former chairman of Deutsche Post, […]