Germany possibly faces historic tax evasion scandal

[Invisigoth]

I will give you a quick synopsis since developments have been coming in fast and not everything has been put into English articles yet.

Yesterday German police raided the house and offices of the CEOof the German Post, one of the largest companies in the country. Mr. Zumwinkel was arrested and later released after posting bail. He is accused of funneling $1.5mio past the German tax system into bank accounts in Liechtenstein. According to initial reports, the early tips were given by the German foreign intelligence agency, BND, to the finance ministry. Zumwinkel has since resigned from his position.

Now, according to reports by SPIEGEL ONLINE, a speaker for the finance ministry has revealed that there is an on-going investigation against 'many' prominent and less-prominent figures of German society. According to government insiders there are supposedly more than 1000 suspects that are being targeted.

The speaker for Germany's finance ministry called on people to come forward and file amended returns (not sure this is the right word).

Here's a link to some basics of the story.

http://www.spiegel.de/international/business/0,1518,535230,00.html

*Update 1*
The finance ministry just announced that 125 preliminary proceedings would be opened next week and 900 search warrants had been issued.

*Update 2*
According to conservative estimates at least 300mio Euros were smuggled past German tax officials, however other sources speak of upto 4 billion Euros.
http://www.spiegel.de/wirtschaft/0,1518,535504,00.html
(german)

*Update 3*
According to news reports, the German Bundesnachrichtendienst (BND) paid 5mio. Euros to one of its informants for the bank/tax evasion information, the finance minister OKed the deal that took place in Germany in 2006. Apparently the data not only contained insides on German tax evaders but also orders by the Liechtenstein leadership on masking financial transactions.

*Update 4*
The informant who sold the information to the German intelligence services has apparently asked for police protection, saying his life is in imminent danger.

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I just wanna say how very elated I am that these sort of people are finally being held responsible for their greed and hypocrisy and while most of them are probably gonna get off easy I can't wait to see their names dragged through the media and them being shamed for their anti-social behavior.

First time I am happy to see any news from the finance ministry ;)

[Invisigoth]

The information was apparently obtained from documents of the LGT-Bank in Liechtenstein, how that information was obtained/leaked is unknown so far.

[little icebear]

What strikes me time and time again, is that such is done by people who make more money than average-joe would ever see anyway...

I don´t know how much Zumwinkel makes per year, but since he´s a CEO since the Post was privatized, I´m pretty sure 1.5 mios are peanuts to him.
When I´m filthy-f*cking rich either way, why not just pay taxes like everyone else?

[Annihilator9112]

The more you get payed the more Tax you pay.

[little icebear]

Of course. Would be pretty strange if it was the other way around...

But you can bet - if I would not have to pay taxes, it would affect my lifestyle much more than in his case. An easy example, isn´t it?

[Invisigoth]

Mr. Zumwinkel has been at the top of German Post for 18 years, ever since the German government privatized and split the company in 1989 (government remains majority shareholder). In 2006 he was paid a fixed salary of 1.43 Million Euros plus additional benefits of 106.000 Euros and a success bonus the size of his fixed salary, together 2.96 Million Euros. That's roughly 5.5% more than in 2005.

Finance ministry just announced that 125 preliminary proceedings would be opened next week and 900 search warrants had been issued.

Oh baby, this is gonna be fun. Its gonna feed the German boulevard press for weeks to come ;)

P.S. According to conservative estimates at least 300mio Euros were smuggled past German tax officials, however other sources speak of upto 4 billion Euros.

http://www.spiegel.de/wirtschaft/0,1518,535504,00.html
(german)

[Invisigoth]

-edit added-

[Paddy51]

Some people are just greedy - they never sit back and think "I've got enough money". I do not know anything about economics but isn't this whole business going to have a very negative effect on German stocks etc. Surely, confidence in the stockmarket and economy is going to drop as people will speculate about which companies will be hit and who will be arrested.

[muck]

The information was apparently obtained from documents of the LGT-Bank in Liechtenstein, how that information was obtained/leaked is unknown so far.

According to weekly SPIEGEL, the prosecutors received their informations by the Bundesnachrichtendienst, Germany's foreign intelligence service.

Good hunting is all what I can say - even if I oppose our ridiculous tax system, tax evasion is no petty offense.

[toki]

According to weekly SPIEGEL, the prosecutors received their informations by the Bundesnachrichtendienst, Germany's foreign intelligence service.

Good hunting is all what I can say - even if I oppose our ridiculous tax system, tax evasion is no petty offense.

x2

Anybody remembers Klaus Esser? The greedy ahole who filled his pockets, when Vodafone took over Mannesmann (20+ mio. € in his pocket)? His daughter was in my class. Those top managers are quite often above any morale. I knew him in person and he was of sickening arrogance and 'above' anybody. It makes me wonder if you have to be an egomaniac greedy prick to reach these kind of positions.

[RS_Leo1A5]

According to N-TV news the BND was approached by an anonymous informant who offered information on tax evasion by German citizens using a bank in Liechtenstein. As the BND wasn't in charge (it is only concerned with financial transactions related to terrorism) the informant was referred to German finance authorities.
His motives for disclosing the information are (currently) unkown.

[Calanen]

x2

It makes me wonder if you have to be an egomaniac greedy prick to reach these kind of positions.

Normally, the answer to that question is yes.

[Invisigoth]

It's getting better and better:

According to news reports, the German Bundesnachrichtendienst (BND) paid 5mio. Euros to one of its informants for the bank/tax evasion information, the finance minister OKed the deal that took place in Germany in 2006. Apparently the data not only contained insides on German tax evaders but also orders by the Liechtenstein leadership on masking financial transactions.

[muck]

A pretty amusing oddity: The informant had to pay 10% taxes on the money he received during the deal. We have an own special law which defines that the Federal Intelligence Service' informants have to pay taxes on their fee.

Regulation frenzy, isn't it?

[ZhukovG]

The more you get payed the more Tax you pay.
that is why i call the tax system BLOODSUCKER rofl