Billions of dollars, euros and pounds sterling are expended every day to fight criminals who hack into bank and other financial computers, ripping off hundreds of thousands of credit card and account holders. Billions more are spent for police vigilance against armed robbers of banks and individuals.
Thus it is more than a little ironic that government officials are happily joining this crime wave.
Bank robbery by national tax collectors is now an international epidemic led by Germany’s Teutonic Tax Collectors and involving France, Switzerland, Liechtenstein, the Netherlands and sundry other once sovereign countries, with the U.S. IRS as a willing accomplice.
It appears that a new official policy holds that it is acceptable for governments of major welfare-socialist nations to engage in criminal acts of bribery, receiving stolen property and violations of privacy laws -- if those officials decide that their criminal acts may lead to collecting taxes that they desperately need to finance their profligant spending.
This novel theory of vigilante lawlessness allows these tax collectors to act as prosecutor, jury and judge -- with bribed criminal thieves providing tainted stolen evidence.
Criminal Bribery
Exhibit A: In Zurich yesterday a Swiss lawmaker likened current official German attempts to buy stolen Swiss data on alleged cross border tax evaders to "bank robbery." The Swiss Bankers Association accused the Berlin government of acting as "a receiver of stolen goods."The harsh words followed German officials saying they will pay for data on about 1500 German clients of Swiss banks being offered to authorities by a self-appointed whistle blower, even though the information has been stolen. This unidentified individual has offered to sell Germany the information in exchange for a bribe of a cool €2.5 million (US$3.49 million). (In unmarked bills?)
"In principle, the decision has been made," a German official said, adding the legal basis (if any?) was similar to a case in 2008 when Germany paid for client data stolen from Liechtenstein's leading LGT Bank. The only "legal basis" then, as now, was official German bank robbery.
Liechtenstein Loot
As usual, the leading justification for the immorality of official criminal bribery is the alleged potential tax take.
German media, which estimated authorities obtained around 200 million euros (US$558 million) in tax revenues in 2008 when Germany bought the stolen LGT data, (instead of the billion euros predicted at the time), are saying the latest stolen Swiss data on 1500 possible tax evaders could yield 100 million euros (US$279 million). (Don't hold your breath!)
In that notorious LGT Bank instance, in March 2008, the German secret police agency, the Federal Intelligence Service (BND), (the equivalent of the U.S. Central Intelligence Agency), paid a €5 million (US$7.3 million), bribe to a disgruntled employee with a criminal record who worked at LGT Bank in Liechtenstein.
The German government, then as now, seems to assume as a matter of policy that every German who has a Swiss account is engaged in tax evasion.
French Connection
"Here we have a new form of bank robbery," Swiss lawmaker Pirmin Bischof told Germany's Deutschlandfunk radio. "Before, you had to go to the bank and get hold of the money with a weapon. Today you can do it electronically by stealing data. This should not be allowed in a country based on the rule of law," Bischof added.
Not to be outdone by the German tax collectors, French tax authorities are combing stolen account holder information it acquired recently from an employee of HSBC Holdings private bank in Geneva. It was reported variously that the data came from HSBC’s private bank, from UBS accounts, and from Credit Suisse.
"This is a kind of business war against Switzerland in which practices which were completely illegal have become acceptable," says Daniel Fischer, founder of Zurich-based Fischer & Partner law firm who specializes in banking law and fraud. "It’s a huge danger for Swiss banks." And for innocent account holders, we might add.
First Pressure, Then Bribery & Theft
Germany and France, having pressured Switzerland and other nations into accepting more liberal tax information exchange rules last year, apparently also believe in stealing information as well.
Their willingness to pay for stolen data is upping tensions with France and Germany even as Switzerland negotiates treaties implementing cooperation with international tax probes under Article 26 of the OECD model banking code.
In reaction to this continuing bank robbery, the Swiss government said it will draft a law barring official cooperation with foreign countries in tax cases involving theft of Swiss client details.
And Threats of Extinction
Of course the most notorious instance of breaching Swiss bank secrecy was the U.S. IRS law suit against UBS.
The U.S. tax evading UBS, Switzerland's biggest wealth manager, settled with the U.S. in August 2008 by agreeing to share data on 4,450 clients. But that deal, considered crucial to UBS's business in the U.S., now is in question after a Swiss court ruled last month that most of the data cannot be released under Swiss law.
Legal Danish
In 2008, when Germany was engaged in bribery and receiving stolen names, most governments, including the United States, were happy to receive the stolen information in the case, but Denmark was a notable exception.
Its then tax minister, Kristian Jensen, described the Liechtenstein affair as an "advanced form of handling stolen goods". He added: "I think it's a moral problem to reward a criminal for information that he stole. I don't like this and I don't think this ethically is the best way to ensure that taxes are paid correctly". A lone voice in the tax collecting wilderness.
We Oppose Tax Evasion
The Sovereign Society, I say yet again, is opposed to, and does not condone, tax evasion -- which is illegal -- but we do support legal tax avoidance. If you care to know more about our stand on paying taxes, click here.
We also are strong believers in the fundamental human right to personal and financial privacy.
We staunchly oppose any totalitarian government officials who arrogate unto themselves the right to presume millions of people guilty of any crime, let alone tax evasion, simply because they have a bank account in the world's leading offshore financial center, Switzerland.
Shadow of German History
Let your mind wander back in history to the dark year 1934.
It was then that Switzerland's parliament codified its bank secrecy policy into law. That courageous act was a direct response to thwart Nazi German officials that were trying to bribe Swiss banks to get the names of Jews and other Germans with Swiss bank accounts.
Those German ancestors of Berlin's current tax hungry politicians were driven by irrational hatred of selected people. In their righteous fury the Nazis claimed the absolute right to confiscate property without trial or due process.
How different is the current German government and its bank and stolen property bribes? While the Nazi motivation was far different, the tactics are the same -- and in both cases those tactics are not only criminal, but immoral.
It is time that Swiss politicians remember their national history -- and fight to defend their sovereignty, rather than just worry about their banker friends.
We Are Prepared
We at the Sovereign Society saw this coming a long time ago…
We meet regularly with Swiss and other offshore bankers, and have agreements with reputable Swiss banks willing to accept accounts from those who identify themselves as Sovereign Society members.
These arrangements are in full compliance with IRS and SEC rules and other U.S. laws. U.S. clients must sign an IRS Form W-9 that allows an offshore bank to report required information to the IRS.
As it has been since our founding 12 years ago, our staff is available to assist in opening a Swiss or other offshore account. Take advantage of these special Swiss banking arrangements and the advice of our Swiss advisors by visiting our Member’s Only web site today.
We believe that in all this debate about bank robbery and bribes, basic issues remain -- preservation of personal freedom and liberty, versus complete government control of our lives and our fortunes.
You can learn all about "going offshore" with your retirement plans and about legitimate and legal offshore financial centers in my just published 4th edition of Where to Stash Your Cash Legally: Offshore Financial Centers of the World. Find out how here.
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