Liechtenstein banking secrecy

Liechtenstein banking secrecy
- how the press of the world looks at Liechtenstein, reports its activities, informs about its banking secrecy - foundations - trusts - suitcase filled with cash - bank accounts - cash access abroad - offshore banking - tax evasion - tax scandal

This text had been created late 2008 during the financial crisis. But this text is of general permanent interest. As far as details in this text might still refer to the crisis 2007...2011, this will be removed soon.

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Liechtenstein : Opinions, facts, future

Liechtenstein - its reputation (New York Times)

"Liechtenstein, a tiny German-speaking principality wedged between Switzerland and Austria, has strict banking secrecy laws and grants favorable treatment to foundations. Many are filled with cash spirited out of Germany through various means, some as crude as stuffing a suitcase with cash and driving across the border. Smugglers are arrested regularly.

--- Foundations are taxed in the low single digits and are permitted to disburse money to their founders and to founders’ family members. The foundations are also permitted to open bank accounts in their own names outside the principality, which gives the owners access abroad to their cash.

--- Any effort to trace the owners of the foundations runs up against Liechtenstein’s tough banking secrecy laws."

--- from: "Tax Scandal in Germany Fans Complaints of Inequity", New York Times 2008-02-18. y CARTER DOUGHERTY and MARK LANDLER

Liechtenstein - the origin of activity as a tax and money haven (Financial Times / London)

"There are circumstances in which banking secrecy laws are just. The rise of Switzerland and Liechtenstein as tax havens began in the 1930s, when their laws protected German Jews who sought to put their money beyond the reach of Nazi agents. But limited co-operation with tax authorities will hardly result in the persecution of modern-day Germans, and nor does it end their legitimate right to invest wealth offshore if they so choose."

--- "Germany's problem with evasion is partly the fault of its tax system. Although the abolition of wealth tax has improved matters, marginal income and inheritance tax rates for high earners approach 50 per cent. Tough enforcement will never stop evasion if taxes are punitive".

--- from: Financial Times (London), 2008-02-19

Liechtenstein and other European tax havens under pressure (Guardian / London)

"Germany will today demand that Europe gets tougher with tax havens such as Switzerland and Liechtenstein, and forces them to cooperate more fully with their neighbours.

--- "Peer Steinbrück, the German finance minister, also wants pressure brought on Monaco and Andorra because Berlin thinks it is losing up to €30bn (£23bn) a year to tax evasion by Germans who hold anonymous trusts in those tax havens."

--- from: The Guardian, 2008-03-04: ,,Germany urges EU to get tough with secretive countries''

Liechtenstein - limits of banking secrecy in modern times

"The fast-spreading scandal has already brought down one of Germany’s most powerful business figures, Klaus Zumwinkel, who resigned Friday as the chief executive of the German postal service after the police raided his home. He is suspected of evading $ 1.46 million in taxes."

--- "a mysterious informant who was paid by German intelligence to turn over a data disc containing evidence of tax fraud on a vast scale."

--- from: "Tax Scandal in Germany Fans Complaints of Inequity", New York Times 2008-02-18. y CARTER DOUGHERTY and MARK LANDLER