Germany cracks down on money laundering, tax fraud
The German government plans to crack down on tax fraud, money laundering and illegally acquired assets with more audits and stiffer penalties. The 2027 federal
The German government plans to crack down on tax fraud, money laundering and illegally acquired assets with more audits and stiffer penalties. The 2027 federal budget proposal, with its estimated revenues and expenditures, is alarming. With projected expenditures of around €555 billion ($634 billion), Germany will have to take on approximately €200 billion in new debt next year. No wonder the federal government is thinking hard about ways to boost revenue. It quickly zoomed in on the billions the government loses each year due to financial crimes. While there are no official figures, experts estimate the loss at between €100 and €200 billion per year. Even if only a small portion of that could be recovered through more effective auditing and stiffer penalties, it would still be a big help to Germany's federal government, federal states and municipalities, whose budgets are funded almost exclusively by tax revenue. Money laundering, oligarchs, terrorists: How corrupt are the banks? To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Police, tax investigators and customs authorities to work together "The majority of citizens in this country pay their taxes, and they do so without question, without fail and without making a fuss," said Federal Justice Minister Stefanie Hubig in Berlin. "But there are also those who conceal their income from the tax authorities." This ranges from illegal employment to offshore tax shelters, shell companies and slush funds, all the way to many other deceptive practices. Together with Finance Minister Lars Klingbeil, Hubig has developed a 26-point action plan aimed at better combating tax fraud and money laundering. She also announced plans to establish a "Joint Center Against Tax and Financial Crime" within the Customs Department.
A total of 1,500 new posts are planned in order to consolidate investigations, analysis and prosecution of money laundering and tax crimes. Tax evaders 'cannot be allowed to get away with it' "A key component of the center will be a new data analysis center," said Klingbeil. "Artificial intelligence will help sift through large amounts of data, decipher complex corporate structures and better identify front men." Tax investigators from the federal states, the Federal Criminal Police Office and financial investigators from the Customs Department aim to collaborate more closely on major cases. "No one should be able to rest assured that they won't be caught," said Klingbeil. "We cannot let honest people be the ones who lose out while tax evaders line their pockets with illegal tricks — they cannot be allowed to get away with it." But that's exactly what has been happening in Germany for a long time. Take, for example, what became known as the Cum-Ex scandal. For more than 10 years, the government allowed capital gains taxes on stock dividends — which had been paid only once or not at all — to be refunded multiple times. It wasn't until 2011 that the scandal led to numerous investigations, court proceedings and political debates about the responsibility of banks, investors and regulatory authorities. White-collar swindlers: The crypto trap & Wirecard scandal, To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Could tax evaders simply pay back taxes? Another frequently debated topic is the option of voluntarily reporting tax evasion in exchange for immunity from prosecution. Germany has allowed this practice since 1919.
The BriefWire