From english version of "Spiegel Online":

The Liechtenstein Connection

With one bigwig already toppled for tax evasion and hundreds more likely waiting their turn, all roads lead to the tiny principality of Liechtenstein. According to SPIEGEL sources, Germany's largest post-war economic scandal started with a single intelligence source.

Read the complete article here

German Banks Suspected of Helping Clients Evade Taxes

Tax investigators in Germany have found evidence that some German financial institutions may have been involved in tax evasion via foundations in Liechtenstein. The news comes a day after Angela Merkel outlined the ways she expects the tiny state to tackle tax fraud.

Read complete article here


Also u.s. senator Carl Levin did bring up that topic...

Read more (in german) here

So what's your opinions on tax evasion and dwarf countries who make fortunes in hiding the money?

I really had no idea Liechtenstein did not have a treaty that forces their banks to pay lost tax revenues to the country of the konto holder. I thought we solved those issues.

Since it's in the interests of all the surrounding nations it should be no problem to force Liechtenstein to make an agreement.

Basically it's not only about Liechtenstein... there are many more rogue-states! E.g. a representative of the swiss banks called the german move "Gestapo like". Imho switzerland is the bigwig of all these countries living on other countries costs. Making a 3rd Reich comparison is rather funny, since the only country only benefiting from 2nd ww was swiss. First they payments in from jews on the run, shortly later from nazis on their way to south america... only very few of both ever came back to withdraw!!

But you still pay taxes to your own governement over your savings in Switzerland, although anonymous. Appearantly that is not the case in Liechtenstein.

That's true... but only from 2007 after year of pressurizing the swiss goverment. From 2007 until today about 100 million swiss franks have been transfered to germany... i recon if somebody starts asking for the last 60 years, swiss will be bancrupt ;-)

The problem in switzerland is, that tax evasion is not a crime and therefore not reported at all.

I am a bit confused here, and maybe the two of you can help me understand. Germany is pissed because these guys (or companies) are not paying taxes on accounts outside of Germany? Or, is this money that was made in Germany but put in a bank in Liechtenstein?

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I'm glad to help you out of the confusion...

...to put it short: germany is pissed because germans were hiding their money in liechtenstein and liechtenstein activly made it a big business to provide tax heavens for people from all of the world, providing special models to hide and transfer money, therby undermining the local tax systems. So money "made in germany" was illegally transfered, anonymised and therby taxing of the interest earnings was prevented.

In addition to that Liechtenstein has about 35.000 inhabitants and about 75.000 phantom/offshore companies. So the whole "country" basically lives from tax fraud on bigger countries.

But it's not a solely german issue - here's a nice wrapup from spiegel-online (in english): LINK

LIECHTENSTEIN'S SHADOWY INFORMANT
Tax Whistleblower Sold Data to the US

By SPIEGEL Staff

The shadowy informant who blew the whistle on German tax cheats also sold data to US authorities, SPIEGEL has learned. The man, who was paid almost 5 million euros for DVDs full of information, has now been given a new identity by German intelligence.

I heard about this in the news last week. Seems Der Speigel is publishing the names of German citizens that are hiding their monmey in Lichtenstein banks to avoid taxes. It's got a lot of tax-paying Germans pissed off.

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Well, the lesson taught by stories like those about the "rouge states" should be that the domestic tax rules need to be reformed. Most people have no interest in evading taxes, they are happy to contribute to society by paying their taxes. However, the more people who try to evade taxes, the more sick your domestic tax schemes must be. Thus, the correct action of the German authorities is not to pursue the tax evaders - and certainly not to put pressure on a friendly, independent country - but to examine the German tax laws and see what needs to be mended.

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I think you got this wrong. The fact that some people break the law doesn't mean the law is wrong.

Not quite. The paper didn't have much to do with it and also didn't publish the lists. The list was acquired by Germany's foreign intelligence agency ... and now the authorities are after those who tried to hide their money in Liechtenstein to avoid taxes. The data will also be given to other countries btw.

I have to contest this statement. While it is definitely true that tax evasion is a big business in Liechtenstein, I consider it to be unfair to see how many Germans make it look like Liechtenstein would be living pretty much solely from that.

Thats not correct. I have read that the banking business that might be related to tax evasion does not contribute to more than 30% of the income in Liechtenstein. 70% derive from other services the industry and to a small party I guess from agriculture.

Liechtenstein for being such a tiny country has a pretty fair share of high leverage companies. Hilti being the best known of all I guess (and having 20.000 employees worldwide), Hilti products being the Ferraris among the tools . But other companies are well known as well, but in other sectors like dental products and the production of elevators or car parts.

I agree with you that this tax evasion thing is asocial towards the neighbor states, but one should not make the country worse than it is.

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Thats just the argument for those people who give a fuck about their responsibilities and will always try to evade standing straight for it, no matter how low the taxes are.

"Its not our fault to commit acts of crime! The state "forces" us to do so."

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Vienna Central-Cementery:
"Half the size of Zürich, but twice the fun"

If it's really o.k. for you when 30% a countries income is based on criminal behavior, so be it. But I think it's a f****** shame for all people living and working in normal jobs there!!

And it's not only the tax evasion topic, what do you think are the 75.000 Phantom companies made for?

Imho there should be no Schengen treaty until they fully cooperate within european standards. This should also be true for switzerland since they have a even bigger record in using their neutral status for offshore money laundry and tax fraud!

No its not ok, I never said that, but its legal in Liechtenstein. Whereas the way the BND acted might have been illegal according Liechtensteiner law.

Thats from an ethic point of view maybe wrong, and I think pressure will rise dramatically now towards Liechtenstein for a good reason. Thats good.

But having that said, I think its unfair to reduce Liechtenstein entirely onto the status of a parasite like some German media have done. Thats wrong as well.

As far as it comes to Switzerland, I think a satisfactory solution has been found already. Soon depositing your money in Switzerland will be not really a tax relief anymore, while maintaining anonymity. Unless the Swiss banks dont commit fraud on a systematic scale its a good compromise.

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Vienna Central-Cementery:
"Half the size of Zürich, but twice the fun"