(de-news.net) – Two German ministers have unveiled a broad action plan to strengthen enforcement against tax evasion and financial crime through tougher penalties, expanded investigative powers, and closer domestic and international cooperation. The proposals have been welcomed by an advocacy group which says the reforms address longstanding weaknesses in tax enforcement.
SPD government leaders Lars Klingbeil and Stefanie Hubig have unveiled a comprehensive strategy to strengthen enforcement against tax evasion and financial crime. The Finance Minister and the Justice Minister presented the action plan in Berlin, stating that it is intended to increase the likelihood of detecting tax offenses while improving coordination among investigative authorities.
A central measure is the establishment of a Joint Center against Tax and Financial Crime within the customs administration, where state tax investigators and federal financial crime specialists would coordinate complex investigations and exchange intelligence. The government also plans to create a nationwide data analysis center using artificial intelligence to identify fraud patterns more efficiently.
Tougher measures linked to higher revenues and fiscal consolidation
The package includes several legislative reforms. Organized tax crime would become punishable by prison sentences of up to 15 years and classified as a serious criminal offense requiring public court proceedings. The existing system of immunity through voluntary self-disclosure would also be substantially restricted, as the government argued that the current rules encourage offenders to come forward only when detection appears imminent. Additional measures include mandatory cash registers for cash-intensive sectors, a 15-year retention period for accounting records, domestic mirror-server storage of tax-relevant corporate data, a digital value-added tax reporting system, expanded data-driven tax audits, stronger penalties for companies involved in tax evasion, enhanced whistleblower protections, and public disclosure of sanctions imposed for serious tax offenses.
The action plan also calls for closer European and international cooperation, including stronger support for the European Public Prosecutor’s Office and expanded cross-border information sharing. According to the government, the measures are intended to improve tax fairness while generating billions of euros in additional public revenue through more effective enforcement and the introduction of cryptocurrency taxation, thereby contributing to budget consolidation.
The advocacy organization ‘Bürgerbewegung Finanzwende’ welcomed the proposals. Its executive director, Anne Brorhilker, said that the reforms addressed key weaknesses in the current system. She argued that tax evasion had traditionally been treated more leniently than comparable fraud offenses, often resulting in investigations ending through negotiated settlements. In her assessment, the creation of a centralized federal investigative unit would significantly strengthen enforcement, and she noted that many of the organization’s long-standing recommendations had been incorporated into the government’s action plan.
