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Germany-Liechtenstein tax evasion
A polite handshake between German Chancellor Angela Merkel and Liechtenstein's Prime Minister Otmar Hasler. But Hasler's long-scheduled visit to Berlin has been overshadowed by a burgeoning row over tax evasion between the two German-speaking nations. Liechtenstein's come under fire in Germany after prosecutors began investigating hundreds of people who are suspected of evading taxes by parking money in secret bank accounts in the tiny principality. The probe - which has seen raids of homes, offices and banks across Germany - has led German politicians to criticise the existence of tax havens in Europe. Merkel has asked Liechtenstein for help with the tax probe - but also asked German citizens to abide by the tax rules: SOUNDBITE: German Chancellor Angela Merkel, saying (German): "Of course as the German government we expect that our citizens in Germany pay their taxes according to law. On the other hand I also mentioned that we wouldn't find it good if the Liechtenstein banks were to, that is to say, try to interest people in wrongdoing." Hasler says he would be willing to sign a cooperation agreement to fight fraud. Liechtenstein's justice minister told a news conference that tax evasion has nothing to do with investing money. He says no one would ask Germany to take a product off of the market if it could be paid for by those evading tax: SOUNDBITE: Klaus Tschuetscher, Liechtenstein Justice Minister, saying (German): "Germany says dear people of Liechenstein, you have a product, take it off the market, just because a German who might have evaded taxes is investing money here." Despite Merkel's and Hasler's insistence that the two countries have held "constructive talks" on the matter - some in Germany are even saying sanctions might be needed to force Liechtenstein to crack down on tax evaders. But Liechtenstein - which lies between Germany and Austria - is heavily dependent on its secretive banking sector - and has defended its banking record. Joanna Partridge, Reuters
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Added: Feb 21, 2008 |
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