Germany is to ask the European Union to clamp down on tax havens including Liechtenstein, Monaco, Andorra and Switzerland.

Finance minister Peer Steinbruck will use a meeting with his fellow ministers to rally support for tougher rules, says the Financial Times. Berlin estimates the cost of tax evasion at €30bn per year. Prosecutors are currently investigating at least 600 holders of anonymous trusts in Liechtenstein.

The German finance industry has been working on tough new rules that would force tax havens to disclose the extent of the funds held by EU residents in their banks.

It wants to extend the powers of the existing Savings Tax Directive to cover not simply interest payments on cash savings but all returns on financial assets, including dividend payments and capital gains, ensuring that tax is paid in their owners’ countries of residence.

Further reading:

Chancellor to press for sanctions against Monaco

'We're no Liechtenstein,' says Monaco