195 confess in German tax probe

The German investigation into Liechtenstein-based tax evasion is already showing results. Prosecutors say 195 people have admitted guilt, according to news agency Bloomberg.

According to the International Herald Tribune Hans-Ulrich Kruck said today that 91 people targeted in the investigation 'have admitted to the facts' and made payments totalling €27.8 million (£21m).

The investigation is being carried out after the German government paid an informant for details of wealthy German’s bank accounts in Liechtenstein. Other countries are also pursuing tax evaders using Liechtenstein to conceal their financial position.

Meanwhile, opinion is divided on whether the UK’s HMRC was right to separately pay £100,000 for information on Britons’ bank accounts in the tax haven.

Lib Dem shadow chancellor Vince Cable backed the decision saying, 'Paying informants is a tricky business, but it would appear that the German Government has achieved value for taxpayers by paying a relatively small sum of money. If this is the only way of stopping large-scale tax avoidance and perhaps evasion by extremely rich people, then it is worth it.'