Fury in Liechtenstein over German tax inquiry

News in pictures
News in pictures
On Facebook
From the blogs

GCSEs are a pointless waste of time

A few facts. Last year almost 70% of 16 year olds achieved at least 5 GCSE passes with grades A*-C. ...

Asylum seekers: When the questions tell us so much more than the answers

For the last four years I've been paying my karmic dues (I would say "contributing to the big societ...

Thanks to The Sun, for enriching each of our lives

Those at the super-soaraway Sun are, yet again, making outlandish claims that they’ve changed the wo...

Ones to watch: Aiden Grimshaw to Hey Sholay

With so much new music coming out it’s difficult to keep track of what’s out there. It’s a lucky dip...

Germany's attempts to track down an estimated 1,000 "prominent" suspects behind the country's biggest tax evasion scandal on record has sparked a furious row between the Chancellor Angela Merkel's government and the Alpine financial haven Liechtenstein.

Crown Prince Alois, the acting head of Liechtenstein, accused Germany of launching an "attack" on his country and of using its intelligence services illegally to bribe a dubious informant into turning in suspected tax evaders.

The Prince's outburst came less than 24 hours before Otmar Hasler, Liechtenstein's Prime Minister, and Ms Merkel were due to discuss the deepening row over secret bank accounts allegedly held in Liechtenstein by hundreds of "prominent" Germans who are suspected of evading €4bn (£3bn) worth of tax.

On Monday state prosecutors, tax officials and police raided more than 100 homes and offices throughout Germany in search of tax evaders with secret Liechtenstein accounts.

The hunt followed an admission by Germany's federal intelligence service, the Bundesnachrichtendienst (BND) that its agents had paid out €4m to a former Liechtenstein bank employee turned "supergrass" for a CD containing detailed information about Germans with accounts at Liechtenstein's LGT bank. Their actions were said to have been sanctioned by the government.

Prince Alois described the BND's behaviour as "highly suspect" yesterday. He insisted that the informant had been convicted of stealing bank data in 2002 and imprisoned. "Obviously Germany wants to be a big-time receiver of stolen goods," he said.

The Wall Street Journal reported yesterday that the informant was a 50-year-old former LGT employee who had a record of attempting to sell bank data.

German newspaper reports said the BND made it a regular practice to offer cash for secret bank data. A spokesman for Germany's Finance Ministry said: "This is not an attack on Liechtenstein. It is an attack on German criminals."

But two German lawyers said they would prosecute the government and the BND over their handling of the affair. Ferdinand von Schirach, one of the lawyers, accused the BND of playing the role of agent provocateur because it had solicited information with a cash reward financed by the taxpayer. "Taxpayers' money should not be used to pay for a crime," he said.

Independent Comment
blog comments powered by Disqus
Career Services

Day In a Page

'I may be deaf, but you can still talk to me'

'I may be deaf, but you can still talk to me'

Being a teenager is hard enough – for those with hearing loss, it can be even more complicated
A right royal trip down the river

A right royal trip down the river

A new exhibition celebrates the glory days of London's mighty Thames
The 10 Best lawn mowers

The 10 Best lawn mowers

From petrol-fuelled to self-propelled
Every second counts

Why does life appear to speed up as we get older?

Matilda Battersby finds out how the clock plays tricks with our minds
Couture on the Croisette: Fashion hits

Couture on the Croisette

The best outfits from the 2012 Cannes Film Festival
Child of the revolution: the Burmese family that democracy brought back together

Home of the free

The Burmese family that democracy brought back together
Cannes review: Canine accolade and Hitler's return are high spots amid the gloom

Cannes review

Frocks, canine accolade and Hitler's return
Robert Fisk: The going price of getting away with murder... would $33m be enough?

The going price of getting away with murder

Robert Fisk: The long view
Principled Skinner rises above the fray

Principled Skinner rises above the fray

Andy McSmith meets Dennis Skinner
Patrick Cockburn: I fear this terrible massacre will be the beginning of a long civil war in Syria

Patrick Cockburn

I fear this terrible massacre will be the beginning of a long civil war in Syria
Hardeep Singh Kohli: For me, it is all about 'Gregory's Girl', a record of first love

Hardeep Singh Kohli

For me, it is all about 'Gregory's Girl', a record of first love
Christian Louboutin: 'I don't think comfort equals happiness'

Christian Louboutin interview

'I don't think comfort equals happiness'
Happy birthday, Hotel Babylon!

Happy birthday, Hotel Babylon!

Hollywood's home to the A-list celebrates 100 years of discreet luxury
Rupert Cornwell: Low-rise capital could finally reach for the sky

Rupert Cornwell: Out of America

Low-rise capital could finally reach for the sky
The secret life of the red carpet

The secret life of the red carpet

As Cannes reaches its climax with the Palme d'Or and the celebrities gather in London for the Baftas tonight, Kate Youde and Jack Dean investigate the real star of the show