Germany can use "stolen" bank details to trace tax evaders

Tax authorities in Germany can use illegally obtained bank account details to track down tax evaders, according to a ruling by the constitutional court in Karlsruhe on 30 November 2010.

A number of different German authorities have bought several CDs from informants in Liechtenstein and Switzerland, who unlawfully copied the information from bank databases.

The judges at the Karlsruhe court said investigators could use personal banking data bought off informants, irrespective of how the information was acquired. The judges ruled that the search warrant was not unconstitutional and did not violate the claimant's basic rights.

The case was brought by a claimant who objected to a search warrant after his name appeared on a CD containing information on German bank accounts held in Liechtenstein and sold to the German government.

Both Liechtenstein and Switzerland have signed declarations to begin negotiations on tax issues with Germany which will make it harder in future for Germans to avoid paying tax by placing their money in Swiss or Liechtenstein bank accounts.

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