The Kredietbank Luxembourg and the Liechtenstein tax affairs: notes on the balance between the exchange of information between states and the protection of fundamental rights

Abstract: In 2008, German authorities purchased information from a former employee of the Liechtenstein Global Trust Group (LGT Group), leading to numerous procedures for tax evasions in Germany and around the world. This incident in Lichtenstein bears striking similarities to an incident involving Kredietbank Luxembourg around 1996. These events raise various legal issues, including whether States may use stolen information as evidence in criminal and tax proceedings against their citizens. This article addresses this issue focusing on the relevant European law which provides valuable protection for these citizens and an important check on the conduct of States in obtaining evidence.