German ministers unveil action plan to crack down on tax fraud

The German government on Thursday unveiled an action plan to strengthen the fight against tax fraud. 

The measures include tougher penalties, tighter rules on voluntary disclosures and the creation of a new centre to combat tax and financial crime.

Finance Minister Lars Klingbeil and Justice Minister Stefanie Hubig, both centre-left Social Democrats, presented the proposals in Berlin.

The government plans to establish a joint centre against tax and financial crime within Germany's customs authority, modelled on the country's Joint Counter-Terrorism Centre. The new body would bring together the analysis, investigation and prosecution of money laundering and tax offences.

"Anyone who defrauds our state and our society must not get away with it," Klingbeil said. "We want tougher penalties in the future."

He said the reforms would consolidate responsibilities across government and strengthen law enforcement's operational capabilities.

Hubig said tax crime harms society as a whole by undermining trust in the fairness of the rule of law. "Citizens must be able to rely on the fact that the rules apply equally to everyone," she said.

Under the action plan, voluntary self-disclosures would no longer automatically exempt offenders from criminal prosecution. The proposals also call for tougher penalties for particularly serious offences and expanded data collection to help authorities identify and prosecute tax fraudsters.