Social parasites with Swiss bank accounts

The German government should have no qualms about buying stolen Swiss information on rich tax dodgers, argues Ludwig Greven from Zeit Online.

Social parasites with Swiss bank accounts
Photo: DPA

Robin Hood was a crook. But even today he remains a role model, a warrior for social equality. He took from the rich and gave to the poor – he was robbing for a higher purpose.

Is the information thief currently trying to sell the German Finance Ministry bank information on 1,500 tax dodgers a modern-day imitation of the mythical figure from Nottingham Forest? Somebody who’s helping the government reclaim money the rich have tried to keep from the common coffers? Certainly not – he’s not acting out of philanthropy. He’s acting out of greed – he wants €2.5 million for his CD of information.

But it’s still morally justifiable that the federal government quickly agreed to the deal. Even if the Swiss bank data was acquired illegally and German tax authorities became guilty of fencing ill-gotten gains: the uncomfortable transaction will help resolve serious misdeeds – on several levels.

Tax evasion is a crime against society. Anyone who hides their money in a foreign bank account keeps money away from the government that it now desperately needs to build streets, schools and theatres and fund teachers or even save troubled banks. These are all things from which tax thieves – usually among society’s most wealthy – profit.

So it’s right that government authorities do all they can to go after such socially irresponsible citizens when they receive tips. But that is rarely the case – as can be seen in this latest episode in Switzerland. The small Alpine country – as do all tax havens – supports the illegal activities of the tax dodgers with its holy bank secrecy laws. These help the Swiss commit and cover up a crimes committed elsewhere – for example, in Germany.

Buying illegally collected information has to be weighed against the massive affront to the principle of social equality – that everyone should contribute to the common good as best they are able. The choice is easy. Exposing massive tax evasion far outweighs the reward for the thief – and not just financially, but even morally.

The government does the same thing in other cases – it offers a reward for information about criminals even if the tip comes from shady sources. It offers key witnesses a reduced sentence or even amnesty – even in the most heinous of crimes. It even does undercover investigations if it’s the only way to prevent or solve a crime.

And what would happen if Finance Minister Wolfgang Schäuble turned down the offer? Wouldn’t he then – figuratively – be guilty of tax evasion himself because he left the well-heeled owners of Swiss bank accounts untouched? Wouldn’t that have only underlined the impression that the Chancellor Angela Merkel’s centre-right coalition only serves its own clientele when the going gets tough?

This is why the federal government didn’t hesitate in reaching an answer. Chancellor Merkel, who called Schäuble and pushed him to say ‘yes’, wasn’t interested in adding to a debate about the protection of tax evaders like former Deutsche Post CEO Klaus Zumwinkel to the coalition’s already mounting problems.

After all, the purchase of a CD with information about German customers of Liechtenstein’s LTG Bank two years ago, which cost Zumwinkel his job, showed that just the possibility that such a list could appear can bring wealthy tax dodgers to their senses. Out of fear of potential punishment (don’t forget you can get up to 10 years in Germany for severe offenses), many people are now turning themselves in and bringing money back home. If you don’t out yourself, you should expect a tough sentence.

It also increases the pressure on Switzerland to finally jettison its systematic protection of tax evaders. The United States is acting as a good example – they’re threatening to close UBS, a major Swiss bank, in America if the government in Bern doesn’t pony up reams of information on US tax dodgers. And the pressure is working. Switzerland is now a lot more cooperative than it was just years ago. It’s the same for other tax havens.

Unlike his predecessor Peer Steinbrück, Wolfgang Schäuble doesn’t have to mount up and charge into Switzerland with the cavalry. But playing Robin Hood a tiny bit won’t simply pour €100 million or so into the Finance Ministry’s empty coffers. It will also show Switzerland that the booming business with foreign tax evaders can no longer rely on the country’s bank secrecy laws. And neither can the country’s German customers.

The walls of Swiss banks are becoming transparent, with the help of even shrewd data thieves. Honest taxpayers and those at the bottom end of the society can be grateful – the state doesn’t only react to welfare benefit fraud by investigating recipients in government housing. It also peers into the nation’s mansions.

This commentary was published with the kind permission of Zeit Online, where it originally appeared in German. Translation by The Local.

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Germany in talks on further payout for 1972 Olympics victims

The German government says it is in talks over further compensation for victims of the attack on the Munich Olympics, as the 50th anniversary of the atrocity approaches.

Germany in talks on further payout for 1972 Olympics victims

Ahead of the commemoration in September, relatives of the Israelis killed have indicated they are unhappy with what Germany is offering.

“Conversations based on trust are taking place with representatives of the victims’ families,” a German interior ministry spokesman told AFP when asked about the negotiations.

He did not specify who would benefit or how much money had been earmarked, saying only that any package would “again” be financed by the federal government, the state of Bavaria and the city of Munich.

On September 5th, 1972, eight gunmen broke into the Israeli team’s flat at the Olympic village, shooting dead two and taking nine Israelis hostage, threatening to kill them unless 232 Palestinian prisoners were released.

West German police responded with a bungled rescue operation in which all nine hostages were killed, along with five of the eight hostage-takers and a police officer.

An armed police officer in a tracksuit secures the block where terrorists  held Israeli hostages at the Olympic Village in Munich on 5th September 1972.

An armed police officer in a tracksuit secures the block where terrorists held Israeli hostages at the Olympic Village in Munich on 5th September 1972. Photo: picture alliance / dpa | Horst Ossingert

The spokeswoman for the victims’ families, Ankie Spitzer, told the German media group RND that the amount currently on the table was “insulting” and threatened a boycott of this year’s commemorations.

She said Berlin was offering a total of €10 million including around €4.5 million already provided in compensation between 1972 and 2002 — an amount she said did not correspond to international standards. 

“We are angry and disappointed,” said Spitzer, the widow of fencing coach Andre Spitzer who was killed in the attack. “We never wanted to talk publicly about money but now we are forced to.”

RND reported that the German and Israeli governments would like to see an accord by August 15th.

The interior ministry spokesman said that beyond compensation, Germany intended to use the anniversary for fresh “historical appraisal, remembrance and recognition”.

He said this would include the formation of a commission of German and Israeli historians to “comprehensively” establish what happened “from the perspective of the year 2022”.

This would lead to “an offer of further acts of acknowledgement of the relatives of the victims of the attack” and the “grave consequences” they suffered.