Countries that are considered tax havens attract particularly low tax rates. The list of the Federal Ministry of Finance now shows that Germans also have billions of euros in these countries.
Wealthy Germans are hoarding billions of euros tax havens. On the British island of Guernsey alone, about 11.9 billion euros of German nationals were hoarded in 2019, according to the newspaper “Süddeutsche Zeitung”, citing a list issued by the Federal Ministry of Finance. Therefore the same amount was found in Liechtenstein.
According to the report, nearly 8.5 billion euros of Germans were stockpiled in the Caribbean Cayman Islands in 2019. The Switzerland Missing on the list – According to the Sueddeutscher Zeitung, the country objected to the publication of statistics. In 2018, just over €133 billion was reported that German taxpayers had stopped at Swiss banks.
The spokesman for the financial policy of the left-wing parliamentary group in the Bundestag, Fabio de Masi, has criticized the withholding of data by some countries. “This is how these countries prevent transparency and protect tax criminals,” said de Masi of the Sueddeutsche Zeitung newspaper.
Bank employees make high profits in tax havens
Banks also rely on tax havens for their corporate policy. According to a study, many European financial institutions generate a large portion of their profits there. The European Observatory of Tax Policy found in a study of 36 large financial institutions that they generate profits at the rate of €20 billion annually in tax havens. According to the study published on Monday, this equates to 14 percent of total profits Guidance.
The study also found that bank employee earnings in tax havens are much higher than in other countries. This indicates that institutes like German Bank or the Commerzbank Researchers have written about moving money to tax havens to pay lower taxes. They ranked 17 regions such as the Bahamas, but also EU countries such as Ireland, Malta or Luxembourg oases because of their low tax rates.