Prince Max of Liechtenstein, is being targeted by a German tax evasion probe. It is said the brother of the ruler of the principality avoided paying taxes on investment gains while living in Germany. 
Lawyers of the prince, who is CEO of the LGT Group, the royal family’s bank, say Prince Max will pay back all taxes owed, but challenges the accusations.
“I have always fulfilled my tax duties in Germany to the best of my knowledge,” Prince Max said in an e-mailed statement distributed by LGT Group late Thursday. “If, contrary to my conviction, it turns out that I owe taxes to the German state, I will meet my obligations promptly.”
Max, who lived in Germany for a year from January 1999 and then from September 2001, met with German authorities in December and pledged to cooperate, the LGT statement said.
But his brother, Prince Alois, says his brother is being targeted because of the tension between Germany and the micro-state located in the Alps. Germany has recently been tracking down tax cheats.
The Paris-based Organization for Economic Cooperation and Development has Liechtenstein on its list of uncooperative tax havens, along with Andorra and Monaco.
The accusation centers on a foundation set up by the princely family for its members. The prince’s lawyers say Max drew no payments from the account while he lived in Germany, but rather secured credit that wasn’t taxable — and that the assets belonged to the family rather than the prince, LGT said.
The German authorities say the prince owes taxes on the assets of the entire foundation because most of the payments from it went to him, according to the LGT statement.
Recent Comments