BERLIN, Feb 23
Attitudes towards tax evasion in Germany have shifted perceptibly in the wake of the financial crisis and the public has far less tolerance for those who hide their wealth abroad, Berlin's state finance minister said.
In an interview with Reuters, Ulrich Nussbaum said that 212 tax evaders in Berlin have turned themselves into authorities this month rather than risk prosecution -- a welcome run sparked by government plans to buy stolen Swiss bank account data.
Across Germany more than 3,000 people have confessed evading taxes to state authorities. Under German law those who report undeclared income themselves and pay back tax plus interest owed before an investigation is started are exempt from prosecution.
"There has been a clear shift in the public's view towards tax evasion, especially when it involves moving money abroad," said Nussbaum, one of Germany's 16 state finance ministers, and a benefactor of the powerful shift towards more tax compliance.
"I would be even happier if the sentiment towards fudging on taxes at home would also change," Nussbaum added.
Dodging taxes had long been seen as a sort of national pastime in Germany. A former German president once said he would like to meet a taxpayer who submitted an honest tax return.
Another state finance minister once joked the desire to save taxes in Germany was greater than the urge to procreate.
Where have the role models gone?
But the atmosphere in Germany has changed in part because public finances are strapped because of the financial crisis. Attention has focused on Switzerland and its bank secrecy.
"People are more sensitive and expect leaders in politics, business and culture to behave morally responsible," Nussbaum said. "These are people who should be role models. The financial crisis has evidently had a role in changing sentiment."
Germany paid for stolen data in 2008 taken from Liechtenstein's top bank LGT. Former Deutsche Post chief Klaus Zumwinkel's Liechtenstein trust was uncovered in that data and he admitted to tax evasion in a spectacular case.
Germany's willingness to buy stolen bank data once again has shaken Switzerland's large private banking industry and stirred emotions in both countries. Germans hold an estimated 200 billion euros ($275 billion) in undeclared funds in Switzerland.
Ignoring protests from Switzerland, Germany has said it would pay 2.5 million euros for the stolen data said to be full of detail about some 1,500 tax evaders that could, according to media reports, yield at least 400 million euros in tax revenues.
Heavy media coverage of looming action against tax evaders whose names may be on the data has prompted many to come clean.
Nussbaum said he was glad to be getting the added revenues but admits having qualms about the use of stolen data. He is head of the state finance ministers committee and hopes to have a standard national procedure in place on acquiring such data.
"I would feel more comfortable if we could agree to a standard and fair procedure in the conference of state finance ministers," he said. "I believe that we have to be able to rely on instruments of a state based on the rule of law."
-Reuters