Overview
- Lars Klingbeil announced Monday that self-disclosure of tax evasion should no longer automatically erase punishment, with new rules to make confessions above set thresholds reduce but not eliminate penalties.
- The finance ministry is drafting a broader action plan that upgrades a federal anti-evasion unit, builds a central data platform, applies AI to spot risks, opens a whistleblower portal, and allows the federal government to buy third‑party tax data.
- Officials argue current law creates a perverse incentive because offenders can wait until discovery looms to confess and still avoid prosecution if they repay tax and interest under Section 371 of the Fiscal Code.
- Ministry figures cited in recent reports show 5,154 cases in 2024 where self-disclosures covered up to €25,000, plus hundreds of larger disclosures, which supporters say undercuts fairness for compliant taxpayers.
- The proposal has early SPD backing, while experts and opposition voices question legal details, warn about effects on routine VAT corrections, and note no draft text, thresholds, or timetable yet as budget 2027 talks begin this week.