Despite the clear resolve of German Chancellor Angela Merkel to purchase stolen tax evader data from an informant, she is nevertheless facing increasing opposition from within her own Christian Democratic Union (CDU) party, with some even speaking openly about the state receiving stolen goods.
Chancellor Merkel is determined to obtain the infamous disc, containing the names of around 1,500 Germans thought to hold bank accounts illegally in Switzerland. According to Merkel, every reasonable individual will realize that tax evasion must be punished. If the data is relevant, she added, then the government should be in possession of the information.
German Finance Minister Wolfgang Schäuble has shown his support for the Chancellor, defending the government’s decision to carefully consider the matter. Alluding to the fact that the legal aspects have also been closely scrutinized over the course of the last few days, Schäuble emphasized that no rash decision would be made.
Referring to a similar incident that took place two years ago, when, for EUR4.6m, the Federal Intelligence Service obtained a disc containing information on 1,400 Germans thought to hold accounts in the Liechtenstein LGT bank, Schäuble noted that it would be difficult for the government to do the opposite now to what had been done two years ago. Indeed, the government’s action at that time has still not been called into question by any court, he noted.
Nevertheless, the CDU Council of Economic Ministers remains fiercely opposed to the purchase, insisting instead that the informant be taken into custody.
Chairman of the parliamentary Legal Affairs Committee, Siegfried Kauder (CDU), has expressed his belief that by purchasing the information for EUR2.5m, the government is sending out a clear signal to data thieves that if they steal, then the state will buy the information.
Claudia Winterstein, finance expert for the Free Democratic Party (FDP), has also criticized the Chancellor, stating that if the data cannot be obtained by legal means, then the state must do without the information. In a constitutional state, the end does not justify the means, she added, otherwise it opens the door to blackmailers and receivers of stolen goods.
Issuing its response, Switzerland’s Federal Administration stated that: “The German Finance Minister, Wolfgang Schäuble, informed Finance Minister Hans-Rudolf Merz by telephone that the authorities of one of the German Länder had been offered the possibility to purchase client data from a Swiss bank.”
It continued: “The German Federal Government will decide whether or not to take up this offer. Finance Minister Schäuble gave no further information on the matter. The ministers noted that both countries currently adopt different legal positions. Federal Councillor Merz also indicated to Finance Minister Schäuble that Switzerland does not provide any administrative assistance on the basis of stolen client data. Federal Councillor Merz pointed out Switzerland's readiness to increase its cooperation with Germany on tax matters, based on a revised double taxation agreement.”
The Federal Administration confirmed that the purchase of stolen client data is prohibited in Switzerland and violates public policy and the principle of good faith. The use of stolen bank data constitutes a breach of the privacy of the clients concerned, it concluded.Negotiations between the two ministers are due to continue shortly.
A comprehensive report in our Intelligence Report series, examining in depth the situation of offshore transparency and secrecy in a number of the most prominent jurisdictions, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report2.asp
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