Europe News

LGT faces lawsuit from German tax evader

Sep 23, 2009, 12:26 GMT

Geneva - A German tax evader is suing the Liechtenstein bank LGT, claiming the institution failed to inform him that his supposedly confidential financial data was in the hands of the authorities.

The Liechtenstein Regional Court confirmed Wednesday a report in Financial Times Deutschland that the civil proceedings would be heard next in Vaduz, the capital of the Alpine principality.

The real estate developer wants 13 million euros (19.21 million dollars) in damages, claiming the bank should have told him the German government had incriminating information against him. He said that had he known of the impending proceedings against him, he would have come clean to the tax authorities and avoided penalties.

The man, aged 66 at the time, was given a suspended prison sentence and a fine of 7.5 million euros for tax evasion.

In 2008, Germany's intelligence services purchased a computer disk from a former LGT employee, which contained confidential data on hundreds of clients of several nationalities, many of whom were evading taxes.

Liechtenstein has strict banking confidentiality rules, though these are in the process of being relaxed owing to international pressure against so-called tax havens.

The suit is being seen as a test case. Should it succeed, other clients could come forward and also claim damages from LGT, which is owned by the princely house of Liechtenstein.

The bank had no immediate response to the report.



COMMENT

blog comments powered by Disqus

Latest Headlines in Europe

Older Talkback

Follow Us

Follow M&C on Pinterest

Search

Custom Search

Also Check Out

Cynthia Nixon marries

Cynthia Nixon marries
Cynthia Nixon married her long-term partner Christine Marinoni in New York yesterday (2y7.05.12), her publicist has confirmed. ... more

Justin Bieber accused of assault

Justin Bieber accused of assault
Justin Bieber has been accused of assaulting a photographer in California after a physical altercation allegedly broke out when the paparazzo attempted to take pictures of the singer and his girlfriend Selena Gomez. ... more

Britney Spears' fiance makes romantic video for her

Britney Spears fiance makes romantic video for her
Britney Spears' fiancee Jason Trawick made a gushing video to tell the singer how proud he is of her US 'X Factor' debut in Austin, Texas, last week. ... more

Gary Barlow is boring

Gary Barlow is boring
Gary Barlow says his family are pleased he has been working on the Diamond Jubilee concert and single - because it has given him something new to talk about. ... more

Demi Moore meets up with Ashton Kutcher

Demi Moore meets up with Ashton Kutcher
Estranged couple Demi Moore and Ashton Kutcher have reportedly met up with each other twice in the last month to discuss the future of their relationship. ... more

Kim Kardashian accuses British Airways of stealing?

Kim Kardashian accuses British Airways of stealing?
Kim Kardashian has accused British Airways of stealing from her baggage after a recent trip to the UK. ... more

Justin Bieber buys $6.5m home

Justin Bieber buys $6.5m home
Justin Bieber has splashed out $6.5 million on his very first home, a seven-bedroom mansion in the Californian suburb of Calabasas. ... more

will.i.am splashes out £15k on laptops for talented youngsters

will.i.am splashes out £15k on laptops for talented youngsters
Will.i.am spent £15,000 on computers for members of a youth music project in London after they impressed him with their talent. ... more

Rochelle Wiseman and Una Healy party on hen night

Rochelle Wiseman and Una Healy party on hen night
Rochelle Wiseman and Una Healy celebrated their forthcoming weddings to Marvin Humes and Ben Foden with a joint hen party on Saturday night (26.05.12). ... more

Justin Timberlake celebrates engagement to Jessica Biel

Justin Timberlake celebrates engagement to Jessica Biel
Justin Timberlake and Jessica Biel celebrated their engagement with a star-studded party at Estee Stanley's Californian home on Saturday (26.05.12). ... more