The German government has unveiled a plan to intensify the fight against tax fraud, money laundering, and illicit assets through increased audits and stricter penalties. The 2027 federal budget proposal projects expenditures of around €555 billion ($634 billion) and new debt of approximately €200 billion.

Financial crimes cost the state an estimated €100-200 billion annually. Justice Minister Stefanie Hubig and Finance Minister Lars Klingbeil presented a 26-point action plan to combat tax evasion and money laundering more effectively.

A new “Joint Center Against Tax and Financial Crime” will be established under the Customs Department, with 1,500 new positions. Artificial intelligence will be used to analyze large datasets. “No one should be able to rest assured that they won’t be caught,” Klingbeil said.

Maximum sentences for organized tax fraud will rise from 10 to 15 years, and serious tax fraud will carry a minimum one-year sentence. Asset seizures will be possible for up to 180 days, with the burden of proof shifting to the owner.

New regulations for cryptocurrencies will be introduced, and from 2028, businesses with annual sales over €100,000 must use cash registers. The government expects an additional €1 billion in revenue from the crackdown.

Source: www.dw.com