German authorities confirmed the purchase of another CD with stolen Swiss bank information as authorities aim to finalize an agreement with Switzerland that may curb tax evasion and bring a windfall in tax revenue.
Officials in the western city of Muenster paid 1.5 million euros ($2.1 million) for a CD with data on 200 accounts at Zurich-based Julius Baer Group Ltd., Gerit Bischoff, a spokeswoman for the prosecutor, said today. Such purchases have been a source of tension between the two countries, prompting discussions to address the issue through a tax treaty.
Talks between German and Swiss officials on taxing so- called legacy assets held by German investors in Switzerland are going “well and constructively,” said Michael Offer, a Finance Ministry spokesman in Berlin. A resolution may come in the next few months, while the revision of an existing double-taxation deal will probably be wrapped up in October.
An agreement may lead to a one-time gain in German tax revenue of as much as 30 billion euros next year, Frankfurter Allgemeine Zeitung reported, citing unidentified government officials. Offer dismissed that sum as “lacking any foundation,” saying any amount raised is a matter of speculation.
German Finance Minister Wolfgang Schaeuble and his Swiss counterpart, Hans-Rudolf Merz, said on March 26 they were considering a withholding tax on assets in Switzerland. Negotiators plan to levy a 35 percent tax on existing and future assets, as well as a tax on profit from assets over the past 10 years, according to the Frankfurter Allgemeine.
Question of Legality
The purchase of stolen data by prosecutors has stirred a debate in Germany on its legality. Switzerland has repeatedly said it won’t offer legal assistance in such cases.
The western state of North Rhine-Westphalia, where Muenster is located, sparked the debate in February when it bought a CD. Since then, other states have followed suit and thousands of people across Germany have filed voluntary tax declarations on their Swiss bank holdings in an effort to avoid punishment.
Bischoff said the person who sold the data to Muenster prosecutors, whom she didn’t identify, requested that the 1.5 million euros go to a relief organization for earthquake victims in Haiti. The organization, overwhelmed by the amount of money, initially sent it back, she said.
