The German government is moving forward with plans to strengthen its efforts to combat undeclared work and tax evasion. The Federal Cabinet approved a draft bill on Wednesday, according to a statement released by the Federal Ministry of Finance. The initiative aims to bolster the fight through enhanced investigative tools, improved data analysis and streamlined inspection processes.
“I have a clear goal to decisively combat tax evasion, undeclared work, money laundering and thus financial crime in general” stated Finance Minister and Vice Chancellor Lars Klingbeil. “The rule of law must act decisively in this area.
The proposed legislation focuses on modernizing customs financial controls. The objective, Klingbeil stated, is to better protect individuals from exploitation and poor working conditions, safeguard state revenues and ensure fairer conditions for businesses adhering to regulations.
Inspection priorities will now be directed towards areas identified as hotspots for undeclared work and illegal employment. A key element of the draft bill involves the deployment of automated data analysis to efficiently process large datasets and identify instances of undeclared work. The initiative includes participation in a police information network and improvements to criminal and fines regulations to more effectively address serious economic crime and organized criminal activity.
