GERMAN FINANCE minister Wolfgang Schäuble has urged tax evaders to turn themselves in rather than wait for their name to turn up on a list stolen from a Swiss bank.
Berlin’s decision to buy the list for €2.5 million in the hope of clawing back up to €100 million in unpaid taxes drew condemnation from the Swiss government yesterday.
“I can only recommend that anyone who might have withheld taxes in the past to use the opportunity to turn themselves in,” said Mr Schäuble
German law allows tax evaders avoid a penalty if they approach tax authorities before an inquiry begins into their financial affairs.
Mr Schäuble said the Swiss deal followed a precedent set in 2008 when Berlin bought stolen data from a Liechtenstein bank and prosecuted more than 200 people.
Barely containing its anger, the Swiss government issued a statement expressing its “astonishment” at Berlin’s decision to buy stolen bank data. “This is a criminal offence in Switzerland. It violates public policy and the principle of good faith, and strains relations between states,” the government said. Berne said it would offer no assistance in any investigation but that, in the interests of good relations, it would continue ongoing talks with Berlin on a double taxation agreement.
Along with the US, Germany has been one of the most energetic countries in tackling tax evasion via Swiss banks.Berlin estimates its citizens have squirrelled away some €450 billion, 75 per cent of which is believed to be in Switzerland.
The affair has divided public opinion in Germany. A newspaper poll found 57 per cent of Germans support the plan to pursue alleged tax evaders. But there are many critics, too, who see the move as “modern bank robbery”, comparing Berlin to a “fence” dealing in stolen goods with criminals.
“A state can’t justify behaviour like this,” said Karl Heinz Däke, head of Germany’s Taxpayers’ Federation.
Unlike the 2008 Liechtenstein case, when Germany’s secret service bought the stolen data, he said the current case involves stolen information on offer directly to the state.
“The question is whether every means is justified in fighting tax fraud,” said Mr Däke. “We are convinced that this is not the case.” German tax offices said they have yet to notice an increase in tax confessions while, in Zurich, bankers said they were fielding a larger than usual number of calls.
“The phones are ringing off the hook. A lot of Germans are quaking in their boots,” one unnamed banker said.
Meanwhile, German services union Verdi called a warning strike, with 22,000 workers stopping work for several hours. Verdi is seeking a 5 per cent pay rise for its two million members.