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Denmark ignored hidden Swiss fortunes for years

The international banking giant HSBC helped hundreds of wealthy Danes dodge taxes and the Danish tax authority did nothing about it, new ‘Swiss Leaks’ revelations show.

Published: 9 February 2015 10:13 CET

Denmark ignored hidden Swiss fortunes for years

A data cache of leaked secret bank account files, obtained through international collaboration between news outlets including Danish newspaper Politiken and the Washington-based International Consortium of Investigative Journalists (ICIJ), reveal that HSBC's Swiss private bank helped customers – including more than 300 Danes – conceal more than 666 billion kroner ($120 million) in secret bank accounts between 2006-2007.

Since September 2014, the ICIJ has analyzed the data leaked in 2007 by Hervé Falciani, a former IT worker at HSBC in Geneva, who fled to France.

Described as the biggest banking leak in history, the information includes details of 30,000 accounts with total assets of around $120 billion. Among the accounts were over 300 Danes who had a combined 4.8 billion kroner (over $730 million) in HSBC between 2006-2007.

Read more from The Local Switzerland: HSBC Swiss bank 'aided terrorists and crooks'

The French government was given the leaked information in 2009 and passed on details of clients at the bank who were evading taxes to other countries, including Argentina, Belgium, Greece, Spain, the US and the UK. Although the Danish government could have also received the list, Politiken reports that tax authority Skat did nothing.

The tax minister, Benny Engelbrecht, said he couldn’t understand why his predecessors didn’t act.

“Quite honestly it is inexplicable that there was a decision to not get the information at the time that it was made available to other countries. It should have been the most natural thing in the world,” he told Politiken.

Skat director Jesper Rønnow Simonsen could also offer no good explanation for why the Danish authorities failed to act.

“I also wonder about that. But now I’ve asked to have it investigated and to have action taken,” Simonsen told Politiken.

For much more on how HSBC’s private bank in Switzerland catered to clients seeking to evade taxes, including those involved in money laundering, financing terrorism and drugs and arms trafficking, visit The Local Switzerland.

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Three scenarios: How Switzerland plans to fight a Covid resurgence

Authorities want to prevent overcrowded hospitals if new wave comes. Photo by Fabrice Coffrini / AFP

Although Switzerland relaxed a number of coronavirus rules from June 26th and 28th, “the pandemic is not over”, as Health Minister Alain Berset said at a press conference on Wednesday.

Berset said Switzerland should not become complacent, with last summer a warning against feeling that the battle is won.

He added, however, that the new wave is unlikely to be as large as the previous ones due to the country’s vaccination campaign.

This situation leaves a degree of uncertainty for which the government wants to be prepared as well as possible, Berset noted.

The Federal Council established a “just-in-case” procedure on Wednesday for three possible scenarios that could take place in the autumn and winter.

These plans focus mainly on the rapid detection of variants and the continuation of vaccination, testing, and tracing.

The best-case scenario: status quo

In this scenario, the number of cases remains at a low level, though small outbreaks are still possible.

The number of infections may increase slightly due to seasonal factors — the virus is known to spread slower in summer and faster in autumn and winter— but does not place a significant burden on the health system.

If this happens, no measures beyond those already in place would be necessary.

READ MORE: ANALYSIS: Is Switzerland lifting its Covid-19 restrictions too quickly?

Not so good: more contaminations

In this second scenario, there is an increase in the number of cases in autumn or winter.

There may be several reasons for this, for example the large proportion of unvaccinated people, seasonal effects — people tend to stay indoors together in cold weather, and contaminations are easier — or the appearance of new, more infectious variants.

This situation could overburden the health system and require the reintroduction of certain measures, such as the obligation to wear a mask outdoors.

Booster vaccinations may also be necessary.

The worst: new virus mutations

In scenario three, one or more new variants appear, against which the vaccine or the post-recovery immunity are less effective or no longer effective.

A new wave of pandemic emerges, requiring strong intervention by the public authorities and a new vaccination.

Which of the three scenarios is most likely to happen?

The government hasn’t said, but judging by the comments of health officials, the latter two are the strongest contenders.

Firstly, because the highly contagious Delta mutation, which is spreading quickly through many countries, is expected to be dominant in Switzerland within a few weeks.

It is expected that the virus will spread mostly to those who are not vaccinated and, to a lesser degree, to people who have only had one shot of the vaccine, according to Andreas Cerny, epidemiologist at the University of Bern

READ MORE: How Switzerland plans to contain the Delta variant

Another concern is related to the appearance of the new variants which could be as or possibly even more contagious than Delta and not as responsive to the current vaccines.

The government said the best chance of avoiding the second or third scenarios is to ensure people are vaccinated.

“Widespread vaccination of the population is crucial to relieve the burden on the healthcare system and to manage the epidemic. A possible increase in the number of coronavirus cases in the autumn will largely depend on the proportion of the population that has been vaccinated,” the government wrote in a press statement.

The government has also indicating it is preparing for booster vaccinations to take place in 2022 and are encouraging cantons to keep their vaccine infrastructures in place.

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