The lengths to which the British tax authorities are now prepared to go to expose those using tax havens in their tax planning has been revealed.

It comes as a small central European jurisdiction has had its tax practices dragged into the glaring spotlight.

Business Editor John Moss reports:

Along with Monaco and Andorra, Liechtenstein is still on the black list of
un-cooperative tax havens, and now it appears German authorities have paid over ?3 million for details of accounts held in the jurisdiction by German citizens. Chancellor Angela Merkel has added her weight to criticism.

For its part, Liechtenstein has reacted furiously and it now appears Her Majesty's Revenue and Customs has paid ?100,000 for similar information.

Meanwhile, any mention of 'off-shores' invariably provokes a barrage from certain comment writers. In the Observer, Nick Cohen describes tax havens as 'as inherently criminal' and claims they would 'go under without the proceeds of crime'. He goes on to describe them as sucking potential revenues out of wealthy and destitute countries alike. 'If rich citizens obeyed the law', he opines, 'or tax havens ended their secrecy, offshore banking wouldn't exist'.