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Cracking Down on Undeclared Work
2025-06-03 10:30:09
Crime

Cracking Down on Undeclared Work

Finance Minister Lars Klingbeil has revealed a staggering 766 million euros in damages from undeclared work in 2024. He plans to intensify controls and introduce new legislation to combat this issue effectively. Klingbeil criticized his predecessor for a lack of ambition in addressing this growing problem.

He aims to leverage artificial intelligence to enhance enforcement, particularly in sectors like hairdressing and cosmetics. This initiative promises to recover significant lost revenue for the state.

As customs officers expand their efforts across various platforms, Klingbeil emphasizes the importance of tackling tax fraud and illegal employment to safeguard public finances.

Related news on that topic:

Strengthening the Fight Against Undeclared Work in Germany

In 2024, Germany's Customs revealed a staggering 766 million euros in damages attributed to undeclared work, marking a significant increase from the previous year's 615 million euros. Finance Minister Lars Klingbeil emphasized the urgent need for robust measures to combat this issue, announcing a new legislative framework aimed at enhancing financial control over illicit labor. The plan involves leveraging automated data analysis and artificial intelligence to target specific industries, notably hairdressing, cosmetics, and nail salons. Klingbeil, who presented the annual report in Hamburg, underscored the imperative to protect individuals from exploitation while securing essential state revenues. Despite challenges such as personnel shortages, he expressed confidence in the potential for greater enforcement against tax fraud and illegal employment. This concerted effort aims not only to address the financial implications of undeclared work but also to ensure a fairer labor market across Germany.

Klingbeil's Dual Approach: Tax Cuts and Crackdown on Tax Evasion

German Finance Minister Lars Klingbeil is spearheading significant tax reforms aimed at bolstering the country's economic competitiveness. The reforms include comprehensive tax cuts for businesses, featuring special depreciation options for investments and a phased reduction of the corporate tax rate from 15% to 10% by 2032. These measures are intended to enhance investment profitability and provide substantial financial relief to companies. The proposed legislation, set to be discussed by the federal cabinet, seeks to provide immediate benefits with an 'investment booster' allowing firms to claim up to 30% in special depreciation for investments made between 2025 and 2027. Additionally, the plan incorporates a generous tax incentive for purchasing electric vehicles, enabling companies to deduct 75% of the cost from their taxes. Despite the economic ambitions, the plans have sparked criticism from the Left Party, which deems them socially unjust, arguing they primarily benefit the wealthy and neglect middle and lower-income groups. Party leader Ines Schwerdtner has called for broader financial relief for the general populace and a cap on subsidies for electric vehicles priced above 30,000 euros. In parallel with these fiscal initiatives, Klingbeil is intensifying efforts to combat tax evasion and undeclared work. He plans to deploy additional customs officials to recover billions in lost revenue, addressing long-standing issues of tax fraud. This dual strategy aims not only to stimulate economic growth but also to ensure fair tax practices, reinforcing both fiscal responsibility and social equity.

The press radar on this topic:

stern
3. Juni 2025 um 04:50

Finance Minister: 766 Million Euros in Damages: Klingbeil Wants to Crack Down Harder on Undeclared Work

According to Finance Minister Lars Klingbeil (SPD), the financial control officers of the customs authorities uncovered a total damage of 766 million euros due to undeclared work in 2024. Klingbeil announced that he will tighten the controls and introduce a draft law to better combat undeclared work before the summer break. He also criticized his predecessor Christian Lindner, who in his opinion had not been ambitious enough. Klingbeil wants to increase the use of artificial intelligence in the..
n-tv
3. Juni 2025 um 08:05

Expensive Undeclared Work: Klingbeil: "I Want to Send Out My Customs Officers"

According to Finance Minister Klingbeil, in 2024 the customs authorities uncovered a total damage of 766 million euros due to undeclared work, which is a significant increase compared to the previous year. Klingbeil announces a tough crackdown on undeclared work, including the use of artificial intelligence and more controls. He also criticizes his predecessor Lindner, who in his opinion was not ambitious enough. Klingbeil wants to intensify the fight against tax evasion and illegal employment..
n-tv.de
3. Juni 2025 um 08:05

Hairdressers, Cosmetics, Barbershops: Klingbeil Declares War on Undeclared Work and Wants to "Send in Customs Officers"

Minister of Finance Lars Klingbeil announces a tougher approach against undeclared work and wants to use automation technologies like AI to reduce the dark figure. The financial control inspectors uncovered a total damage of 766 million euros due to undeclared work in 2024. Klingbeil criticizes his predecessor Christian Lindner for allegedly having too little ambition in the fight against undeclared work.
gmx
3. Juni 2025 um 01:33

Minister Klingbeil presents the Customs Annual Report in Hamburg

Customs officers control at airports, on motorways and at sea to prevent smuggling. This is just one of many tasks.
CW

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