Germany's New Plan Targets Undeclared Work to Boost State Revenue

Federal Finance Minister Lars Klingbeil aims to intensify efforts against undeclared work and tax evasion through a significant legislative reform. This initiative seeks to bolster the Financial Control of Undeclared Work, enhancing its efficiency and networking capabilities to uncover serious economic crimes.

The government anticipates that these measures will generate an additional two billion euros in state revenues by 2029. Focused on addressing emerging hotspots of undeclared work, such as barbershops and nail salons, the reform will enable authorities to better identify and prosecute employers engaging in illegal employment practices.

By modernizing and digitizing the Financial Control's operations, the government hopes to streamline investigations, alleviate the burden on the judicial system, and ultimately safeguard state finances from the impacts of tax evasion.