He is the most prominent figure to be affected by one of the greatest tax evasion scandals of recent times after one of his former employees sold confidential bank information to German intelligence services, prompting a widespread investigation into more than 900 high net worth and ultra high net worth Germans suspected of withholding €200 million ($256 million) in taxes.

Klaus Zumwinkel, the ex-German Post chief executive and Morgan Stanley director, received a two-year suspended sentence and a €1 million fine for evading taxation after authorities found details of his financial dealings with LGT in the leaked data.

"I have always fulfilled my tax duties in Germany to the best of my knowledge," Prince Max, 39, said in an official statement. “If, contrary to my conviction, it turns out that I owe taxes to the German state, I will meet my obligations promptly."

The prince does not enjoy diplomatic immunity and can be tried according to German law, according to the foreign ministry of that country. He is accused of owing taxes on the assets of a foundation set up by his family for its members because most of the payments from it went to him, according to German prosecutors.