Germany to Buy Stolen Swiss Bank Data, Schaeuble Says

Germany to Buy Stolen Swiss Bank Data, Schaeuble Says (Update1)

By Patrick Donahue

Feb. 2 (Bloomberg) -- German Finance Minister Wolfgang Schaeuble said in a newspaper interview that Germany will buy stolen information on Swiss bank accounts, backed by a poll showing voter support for the move if it helps fight tax fraud.

The Swiss case is similar legally to a tax probe begun two years ago, when German authorities bought client data in Liechtenstein and used the information to pursue tax evaders, the southern German Augsburger Allgemeine newspaper cited Schaeuble as saying today in an interview.

“For this reason we could hardly decide otherwise,” Schaeuble was cited as saying. The decision has already been taken “in principle.” A Finance Ministry spokeswoman wasn’t immediately able to confirm his comments.

A majority of Germans, 57 percent, said they support using information on tax violations even if it was illegally obtained, a Forsa poll of 1,000 people for Stern magazine showed. Forty- three percent said they oppose such a move, the poll showed.

A decision to buy the information risks further souring ties between Germany and Switzerland already damaged last year in a spat over tax evasion. The Swiss government will discuss the latest dispute when it meets tomorrow, Finance Ministry spokesman Roland Meier said by phone. He declined to comment on Schaeuble’s remarks.

CD Offer

Information on secret Swiss accounts held by German nationals could yield 200 million euros ($278 million) in lost tax revenue to the German government, Handelsblatt reported yesterday. Tax authorities were offered a CD that contained 1,500 names in exchange for 2.5 million euros.

Chancellor Angela Merkel said yesterday that German tax authorities should pursue the information “if it’s relevant.” Swiss banks, already reeling from attacks on bank secrecy by the U.S., France and Germany, said Merkel’s government shouldn’t pay for stolen data. Finance Minister Hans-Rudolf Merz, who talked by phone again today with Schaeuble, said that Switzerland will offer no legal help on tax matters involving stolen information.

Resistance also came from allies within Merkel’s party. Michael Fuchs, a member of Merkel’s Christian Democratic Union who sits on the economy committee of parliament’s lower house, said in an interview he opposed purchasing the information.

“It’s a very questionable position to be in, the state essentially obtaining contraband -- it’s no different,” Fuchs said. “I’m very skeptical when the state is involved in something like this and I think we should be very cautious.”