The Federal Court of Auditors has identified significant gaps in Germany’s fight against tax crimes, according to a report cited by the Saturday edition of “Bild”. The Court’s findings, presented to the Bundestag’s budget committee, say that the Federal Central Tax Office (BZSt) has not yet fulfilled its statutory duty to support the Länder in preventing and prosecuting major tax offences.
Key shortcomings include a lack of clear task structures and insufficient personnel and technical resources. While criminal tax prosecution is primarily a state responsibility, the federal government is obligated to assist, especially in cross‑border or international cases. The Court notes that the federal role in this area is currently only partially met.
The Länder have announced a considerable need for additional support. Their proposals call for better coordination, more intensive data sharing and the establishment of a central service desk within the BZSt. The Federal Ministry of Finance has so far not implemented many of these suggestions, pointing to legal jurisdictional issues and limited budgetary allocations. The Court finds these arguments unconvincing. A separate assessment by the Scientific Services of the Bundestag concluded that a stronger federal support role is legally feasible.
The Court emphasizes that these deficits are already having tangible consequences. For example, potential tax revenue from international datasets such as the Panama Papers has not been realized. The auditors therefore demand a stronger Federal Central Tax Office and improved cooperation between the federal government and the Länder to enable more effective prosecution of tax crimes in the future.
