German state could buy data even under tax deal, official says

SWISS-GERMANY-TAX:German state could buy data even under tax deal, official says

Authorities in North Rhine-Westphalia would buy more leaked bank data on wealthy Germans seeking to dodge taxes even if a pact with Switzerland banning such purchases comes into effect, the German state's finance minister said in a newspaper interview.

Under the pact, German account holders would remain anonymous but Switzerland would impose a retroactive withholding on capital in offshore bank accounts and would future interest income from those accounts.

"We have indications that money may be flowing into structures which aren't subject to the withholding tax. banks are very efficient," Norbert Walter-Borjans, finance minister of Social Democrat-run North Rhine-Westphalia (NRW), said in an interview published by weekly Sonntagszeitung on Sunday.

UBS , which according to media reports is one of the banks hit by leaked data bought by NRW, denied on Friday it had advised clients to move money in order to avoid detection by authorities.

"In an emergency, we will purchase more data," Walter-Borjans said, when asked whether NRW would buy data if a German-withholding deal, which he has vowed to fight, were to pass.

Walter-Borjans said he was convinced the pact would fail when put to German states and should instead be renegotiated with more favorable terms for Germany.

Walter-Borjan's comments, which came as prominent fellow Social Democrat Sigmar Gabriel likened to organized crime, highlighted that a deal agreed by the German and governments is far from certain to be ratified in time to come into effect next year.

The NRW town of Wuppertal bought one compact disc of UBS data, and Aachen also purchased a CD with data, the Financial Times Deutschland wrote last week. It quoted an insider as saying the UBS data was hefty and included the foundations that helped German clients avoid taxes as well as "big names".

The mining of data purchased from whistleblowers has escalated tensions between Switzerland and over evasion.

It also has threatened Switzerland's strategy to make the cornerstone of further withholding deals that the government is seeking to offset pressure for crackdowns on dodging, while salvaging secrecy.

Privacy is crucial to Switzerland's $2 trillion offshore wealth management industry. The country has clinched withholding deals with Great Britain and Austria as an alternative to automatic exchange of bank information.

image
Business Standard
177 22
Business Standard

German state could buy data even under tax deal, official says

SWISS-GERMANY-TAX:German state could buy data even under tax deal, official says

Reuters  |  ZURICH  



Authorities in North Rhine-Westphalia would buy more leaked bank data on wealthy Germans seeking to dodge taxes even if a pact with Switzerland banning such purchases comes into effect, the German state's finance minister said in a newspaper interview.

Under the pact, German account holders would remain anonymous but Switzerland would impose a retroactive withholding on capital in offshore bank accounts and would future interest income from those accounts.

"We have indications that money may be flowing into structures which aren't subject to the withholding tax. banks are very efficient," Norbert Walter-Borjans, finance minister of Social Democrat-run North Rhine-Westphalia (NRW), said in an interview published by weekly Sonntagszeitung on Sunday.

UBS , which according to media reports is one of the banks hit by leaked data bought by NRW, denied on Friday it had advised clients to move money in order to avoid detection by authorities.

"In an emergency, we will purchase more data," Walter-Borjans said, when asked whether NRW would buy data if a German-withholding deal, which he has vowed to fight, were to pass.

Walter-Borjans said he was convinced the pact would fail when put to German states and should instead be renegotiated with more favorable terms for Germany.

Walter-Borjan's comments, which came as prominent fellow Social Democrat Sigmar Gabriel likened to organized crime, highlighted that a deal agreed by the German and governments is far from certain to be ratified in time to come into effect next year.

The NRW town of Wuppertal bought one compact disc of UBS data, and Aachen also purchased a CD with data, the Financial Times Deutschland wrote last week. It quoted an insider as saying the UBS data was hefty and included the foundations that helped German clients avoid taxes as well as "big names".

The mining of data purchased from whistleblowers has escalated tensions between Switzerland and over evasion.

It also has threatened Switzerland's strategy to make the cornerstone of further withholding deals that the government is seeking to offset pressure for crackdowns on dodging, while salvaging secrecy.

Privacy is crucial to Switzerland's $2 trillion offshore wealth management industry. The country has clinched withholding deals with Great Britain and Austria as an alternative to automatic exchange of bank information.

RECOMMENDED FOR YOU

German state could buy data even under tax deal, official says

SWISS-GERMANY-TAX:German state could buy data even under tax deal, official says

Authorities in North Rhine-Westphalia would buy more leaked Swiss bank data on wealthy Germans seeking to dodge taxes even if a tax pact with Switzerland banning such purchases comes into effect, the German state's finance minister said in a newspaper interview.

Authorities in North Rhine-Westphalia would buy more leaked bank data on wealthy Germans seeking to dodge taxes even if a pact with Switzerland banning such purchases comes into effect, the German state's finance minister said in a newspaper interview.

Under the pact, German account holders would remain anonymous but Switzerland would impose a retroactive withholding on capital in offshore bank accounts and would future interest income from those accounts.

"We have indications that money may be flowing into structures which aren't subject to the withholding tax. banks are very efficient," Norbert Walter-Borjans, finance minister of Social Democrat-run North Rhine-Westphalia (NRW), said in an interview published by weekly Sonntagszeitung on Sunday.

UBS , which according to media reports is one of the banks hit by leaked data bought by NRW, denied on Friday it had advised clients to move money in order to avoid detection by authorities.

"In an emergency, we will purchase more data," Walter-Borjans said, when asked whether NRW would buy data if a German-withholding deal, which he has vowed to fight, were to pass.

Walter-Borjans said he was convinced the pact would fail when put to German states and should instead be renegotiated with more favorable terms for Germany.

Walter-Borjan's comments, which came as prominent fellow Social Democrat Sigmar Gabriel likened to organized crime, highlighted that a deal agreed by the German and governments is far from certain to be ratified in time to come into effect next year.

The NRW town of Wuppertal bought one compact disc of UBS data, and Aachen also purchased a CD with data, the Financial Times Deutschland wrote last week. It quoted an insider as saying the UBS data was hefty and included the foundations that helped German clients avoid taxes as well as "big names".

The mining of data purchased from whistleblowers has escalated tensions between Switzerland and over evasion.

It also has threatened Switzerland's strategy to make the cornerstone of further withholding deals that the government is seeking to offset pressure for crackdowns on dodging, while salvaging secrecy.

Privacy is crucial to Switzerland's $2 trillion offshore wealth management industry. The country has clinched withholding deals with Great Britain and Austria as an alternative to automatic exchange of bank information.

image
Business Standard
177 22
Widgets Magazine

More News

  • Microsoft to warn victims of possible email hack Microsoft appoints Bala Girisaballa as CEO of Accelerator
  • Crude oil nears $50 Indian Oil Corp raises oil import from Iran to 5 MT for FY'17
Widgets Magazine

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard