The German Tax Union (DSTG) is advocating for significant simplifications in the process of filing individual tax returns. Florian Köbler, federal chairman of the DSTG, emphasized the need for a more accessible tax system, appearing in publications of the Funke-Mediengruppe. He called for fewer forms, reduced documentation requirements and greater utilization of digital solutions.
Köbler suggested broader application of standard deductions in place of detailed individual calculations, a measure that he believes would save citizens considerable time, stress and financial resources. The union highlights the potential of digitalization to streamline data collection and verification processes. A more comprehensible tax system, they argue, benefits everyone and minimizes the risk of missed tax advantages.
The DSTG proposes a radical shift for employed individuals, suggesting the complete elimination of the traditional tax return process. Instead, returns would be automatically generated and require only review and potential supplemental information from the taxpayer. Köbler noted that this model is technically feasible and has already been successfully implemented in countries such as Austria. He further proposed relieving retirees from the obligation to file, favoring a system of automatic tax withholding directly from pension funds.
The DSTG, representing personnel within the German tax administration, primarily focuses on improving working conditions within the tax agencies.
Beyond simplification, Köbler championed the increased use of Artificial Intelligence (AI). The union is pushing for the rapid introduction of a centralized, user- and business-friendly service portal for the finance administration, featuring interactive AI support, personalized access to tax obligations, digital compliance guidelines and consolidated support programs. This, according to Köbler, is essential to provide citizens and businesses with access to a modern, efficient and digitally advanced service.
