Germany Proposes Longer Retention for Invoices to Combat Tax Evasion

The German Finance Minister, Lars Klingbeil, has proposed extending the retention period for accounting vouchers and invoices from eight to ten years. This initiative aims to strengthen the fight against tax evasion and related financial crimes, such as undeclared work and money laundering. By prolonging the retention period, authorities hope to deter fraudulent activities, including cum-cum transactions where foreign entities falsely claim capital gains taxes.

Klingbeil underscores the necessity of these measures to secure public revenues and maintain the state's operational capabilities. In addition, he plans to introduce advanced investigative tools, such as automated data analysis, to enhance the detection and prosecution of financial misconduct. The proposed changes are part of a broader strategy to reverse previous reductions in retention periods and bolster the government's ability to combat financial crime effectively. These efforts highlight a renewed commitment to ensuring transparency and accountability in financial dealings, thereby safeguarding the integrity of the tax system.