• Germany edition
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Liechtenstein bank owes tax dodger damages, court rules

Published: 8 Feb 10 11:16 CET
Online: http://www.thelocal.de/national/20100208-25113.html

A German tax dodger has won millions in damages in a suit against his Liechtenstein bank for failing to reveal that his information was stolen along with hundreds of other account holders and sold to Berlin for a criminal investigation.

The case against LGT Treuhand, a former subsidiary of the LGT Group, was decided in January, according to a report in daily Süddeutsche Zeitung on Monday.

The Bad Homberg real estate developer, who was exposed for tax evasion when a bank employee sold the data to the German intelligence service for €4.5 million two years ago, has been awarded €7.3 million by the Vaduz district court.

The tax fraud scandal that followed the sale of the data pointed to some of Germany’s top earners, among them former Deutsche Post boss Klaus Zumwinkel, who was convicted to two years probation and a hefty fine in January 2009. According to the paper, state prosecutors are still investigating up to half of the 845 cases involved.

The Liechtenstein court case has been closely watched by numerous other Germans who are also planning to sue the bank, the paper said.

They argue that if the bank had informed them that their data had been sold, they could have turned themselves in, receiving temporary amnesty and much lower fines.

The bank subsidiary’s successor Fiduco Treuhand AG plans to appeal the case, the paper said.

Meanwhile a newly uncovered tax evasion scandal reached a new dimension last week, as German officials said more stolen data detailing up to 1,500 tax dodgers with funds stashed in Swiss accounts could mean some €400 million in unpaid taxes for state coffers.

DPA/The Local (news@thelocal.de)

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Your comments about this article:

#1
12:13 February 8, 2010 by Deutschguy
Bizarre court decision.

A tax evader is a criminal engaging in criminal behavior, knowingly.

He isn't entitled to anything as a result of exposing his criminal behavior. Except a fine and payment of taxes evaded. A little jail time wouldn't hurt either.

Lichtenstein and Switzerland need to be blacklisted and made illegal travel destinations, as long as their governments allow secret banking and the protection of criminal tax evaders from other countries.
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#2
12:48 February 8, 2010 by The-ex-pat
"A tax evader is a criminal engaging in criminal behaviour, knowingly."

SO IS BUYING STOLEN PROPERTY!. Where does it stop. Can the police illegally park to catch you speeding? what about breaking into your property when out to look for evidence of a crime? But I forgot, crimes in Germany have the following importance listing;

Tax evasion

Any other form of money crime

Insulting a neighbour

Then comes some unimportant stuff like;

Murder

Child rape

Paedophilia.

Prison time for the first list and a fine for the second!
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#3
13:24 February 8, 2010 by HIGNFY
In Germany, both Tax Evasion and Buying Stolen Property are criminal offences and I can understand the Govt. wanting to get it's hands in the info. For some strange reason however, in Switzerland, tax evasion is not considered a crime and that might be the reason for the courts decision.

There doesn't seem to be any hard and fast rules regarding what an tax offender might get in Germany, Steffi Graf's Father got jail and a huge fine, Klaus Zumwinkel only got a fine.

I guess it's down to who you know.

Oh, and one other henious crime which carries a long jail sentence: Downloading music!

So if you do it, make sure to murder somenone at the same time. It will half your pokey time.
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#4
13:25 February 8, 2010 by dbert4
Information relating to a crime that's been/being committed is, "property" which shouldn't be stolen? Sort of an "honor among thieves" scenario isn't it?

If I should have to pay taxes so should they, and to pay a "reward" to one supplying information related to crimes being committed... sounds right to me.
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#5
13:50 February 8, 2010 by tollermann
Hey what gives, I always thought Germans liked their level of taxation - pay for all those generous socialized programs!
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#6
19:43 February 8, 2010 by aceroni
You can't blame this court for trying to protect the only source of income for their nation, which is tax evasion and money laundering, but I would like to see the European states going there with tanks to stop these parasites and get back the money that belongs to all citizens.
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#7
21:12 February 8, 2010 by Prufrock2010
"They argue that if the bank had informed them that their data had been sold, they could have turned themselves in, receiving temporary amnesty and much lower fines."

One of the most novel legal arguments I've heard in my lifetime. It ranks right up there with the "Twinkie" murder defense for absurdity. (San Francisco -- Google it.)
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#8
05:00 February 9, 2010 by wood artist
In the US a company that loses personal data, such as someone hacking their credit card records, is obligated to notify the customers that their identification and personal information might have been compromised. Usually that includes some sort of offer to monitor their credit reports, etc. Card holders can then decide if they wish to replace their cards and such.

However, this is slightly different. Although personal information was "lost" due to some criminal activity, the account holder was suing because his illegal activity...dodging taxes...was revealed. He is correct that if the bank had told him, he might have been able to avoid some penalties, but it was his own illegal deeds that put him in danger in the first place.

I have no idea how the law is worded regarding the bank's obligation to tell him, but I have little sympathy for the guy. It's little different than a crook suing his partner because he ratted him out.

wa
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#9
16:15 February 10, 2010 by mixxim
Do the Judges have their stash there too? What better way to ensure it is kept secret?
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