German Finance Minister Lars Klingbeil and Justice Minister Stefanie Hubig have introduced a comprehensive 26-point action plan aimed at curbing tax evasion and financial crime. The initiative seeks to strengthen investigative authorities and increase the likelihood that tax offenders are caught and prosecuted. Officials emphasize that the plan is a matter of fairness, arguing that those who evade taxes harm the majority of citizens who contribute honestly to the funding of public services like schools and infrastructure.
A central component of the proposal is the restriction of voluntary self-disclosure, a mechanism that has historically allowed tax evaders to avoid criminal prosecution by reporting their hidden income. Under the new plan, this path to immunity would no longer be generally available, particularly for serious offenses. The government intends to reclassify tax evasion as a more serious crime and increase the maximum prison sentences for organized tax criminality from 10 to 15 years.
The plan also focuses on operational improvements, including the creation of a new center for financial and tax crime under the customs authority. This unit is designed to improve coordination between federal and state investigators, utilizing artificial intelligence for better data analysis. Additionally, the government plans to implement stricter requirements for cash-intensive businesses, such as mandatory electronic cash registers, and extend the record-keeping period for accounting documents from 10 to 15 years.
While the Ministry of Finance has not provided precise figures on the total potential revenue, it has cautiously projected one billion euros in additional income for the 2027 budget. The government plans to initiate the necessary legislative changes as early as August. The effectiveness of these measures will depend on the successful implementation of the new investigative structures and the ability of authorities to manage the increased volume of data and enforcement tasks.