A court in Arnhem has torn up fines imposed on a group of people with secret savings abroad because the tax office would not name the source of its information.

The appeal court ruled in favour of the alleged tax evaders because the refusal ‘severely damaged their ability to refute the charges’. Two tax officials had refused to disclose the name of the source in court.

This, the court said, had so shocked the legal system that tearing up the tax demands is considered to be an ‘appropriate’ response.

The tax office said immediately it would appeal against the decision. The verdict would appear to imply that the name of the source of the information is more important than taking action against tax evasion and illicit bank accounts, a spokesman told news agency ANP.

The case dates back to 2009 when then junior finance minister Jan Kees de Jager bought a list of some 300 people with secret foreign bank accounts from an anonymous source. Most of the bank accounts were said to be in Luxemburg.

The finance ministry has collected millions of euros in fines from people with secret bank accounts abroad.