The trend continues. The CBC made a big deal (and rightly so) out of a disclosure of a huge amount of data on offshore bank accounts made to the director of the International Consortium of Investigative Journalists. It appears that German tax authorities have purchased a CD containing information on deposits made to Swiss bank accounts. The authorities purchased the data for €4 million but they expect to recover €500 million in taxes using the data. That’s a pretty good return on their investment (even taking into account the collections costs).
I wonder how tax havens will address this threat to their businesses (to the extent their businesses are about helping taxpayers to avoid or evade paying tax). Tax authorities have deep pockets, especially when they can easily recoup the costs of purchasing data through penalties and fines (never mind the additional tax). How can a haven bank ensure the loyalty and discretion of its employees when an employee could sell data and retire on the proceeds of the sale?
