BERLIN, Feb 7 (Reuters) - Liechtenstein is ready to consider working more closely with Germany's tax authorities after losing client funds since a German tax evasion case erupted last year, the Welt am Sonntag newspaper reported on Saturday.
Prince Max von und zu Liechtenstein told the paper that LGT bank, owned by the country's ruling family, had lost several billion Swiss francs in client funds since the tax case erupted involving a top German businessman.
The prince is chief executive of LGT.
'We must find a solution acceptable for all sides,' Prince Max told the paper, adding that a solution could 'also include a closer cooperation with the tax authorities'.
Former Deutsche Post chief Klaus Zumwinkel was given a suspended jail term last month for evading almost 1 million euros ($1.28 million) in taxes using a Liechtenstein trust.
The case put pressure on the Alpine nation to reform its bank secrecy laws.
Last year, Liechtenstein signed a landmark deal with the United States paving the way for the exchange of bank data with Washington in certain cases of tax evasion.
Prince Max said a similar approach could be possible with Germany, Welt am Sonntag reported.
But he added: 'In contrast to the United States, there are many different voices in Europe that must first be agreed among themselves.'
A document obtained by Reuters in December showed that Liechtenstein would agree to searches of bank accounts and seizures under a draft agreement with the European Union to tackle financial and tax fraud.
The draft agreement was negotiated by the European Commission but Germany sent back an earlier version as it wanted stronger commitments from the tiny non-EU Alpine state, where a number of Germans had salted away money to evade the taxman.
It will need unanimous approval from EU states and Liechtenstein to take effect.
An LGT spokesman separately said that the bank had received fresh funds at its branches outside Liechtenstein, offsetting funds lost domestically.
(Writing by Paul Carrel; Editing by Louise Ireland) ($1=.7807 Euro) Keywords: GERMANY LIECHTENSTEIN/ (paul.carrel@reuters.com; +49 30 2888 5210; Reuters messaging: paul.carrel.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Prince Max von und zu Liechtenstein told the paper that LGT bank, owned by the country's ruling family, had lost several billion Swiss francs in client funds since the tax case erupted involving a top German businessman.
The prince is chief executive of LGT.
'We must find a solution acceptable for all sides,' Prince Max told the paper, adding that a solution could 'also include a closer cooperation with the tax authorities'.
Former Deutsche Post chief Klaus Zumwinkel was given a suspended jail term last month for evading almost 1 million euros ($1.28 million) in taxes using a Liechtenstein trust.
The case put pressure on the Alpine nation to reform its bank secrecy laws.
Last year, Liechtenstein signed a landmark deal with the United States paving the way for the exchange of bank data with Washington in certain cases of tax evasion.
Prince Max said a similar approach could be possible with Germany, Welt am Sonntag reported.
But he added: 'In contrast to the United States, there are many different voices in Europe that must first be agreed among themselves.'
A document obtained by Reuters in December showed that Liechtenstein would agree to searches of bank accounts and seizures under a draft agreement with the European Union to tackle financial and tax fraud.
The draft agreement was negotiated by the European Commission but Germany sent back an earlier version as it wanted stronger commitments from the tiny non-EU Alpine state, where a number of Germans had salted away money to evade the taxman.
It will need unanimous approval from EU states and Liechtenstein to take effect.
An LGT spokesman separately said that the bank had received fresh funds at its branches outside Liechtenstein, offsetting funds lost domestically.
(Writing by Paul Carrel; Editing by Louise Ireland) ($1=.7807 Euro) Keywords: GERMANY LIECHTENSTEIN/ (paul.carrel@reuters.com; +49 30 2888 5210; Reuters messaging: paul.carrel.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.