The German parliament has abolished the requirement for reporting incidents in hotels.
The German parliament, or Bundestag, has introduced a bundled legislation package aimed at decreasing bureaucratic hurdles. This includes the abolition of hotel registration for guests in the future. Additionally, business enterprises will only be required to retain digital employment agreement records for eight years instead of ten. The move was supported by the SPD, Greens, and FDP parties, with even the major opposition party, the Union, casting a favorable vote. The AfD maintained neutrality. The project requires final approval from the Bundesrat.
It's also planned to digitalize operating cost statements in corporate law. In the future, only resolutions pertaining to remuneration details need to be published on the web. However, an earlier suggestion that travelers could use digital passports during check-in was scrapped during the legislative process.
Excessive bureaucracy is commonly seen as a significant handicap to Germany's economic growth. The proposed relief is estimated to amount to 944 million euros, with the state predicting an annual tax loss of 200 million euros. The Federal Minister of Justice, Marco Buschmann, stated that the traffic light coalition has initiated a pivotal shift. With further measures, businesses can potentially save nearly 3.5 billion euros annually, focusing on eradicating paper-based procedures.
Potential challenge for investigations
The law also encompasses easements for tax consultants, enabling them to send out digital tax notices without consent from recipients. Instead, an opt-out solution will be implemented. This could lead to the reduction of 116 million letters. However, Buschmann noted that additional steps are necessary. Brussels is also encouraged to play a part in addressing the majority of bureaucracy which stems from the European Commission.
The non-governmental organization Finanzwende worries about potential adverse consequences of the law. It suggests that the new regulation might make investigations into serious tax crimes difficult or even impossible in 'CumCum' cases due to the shrinkage of receipt and invoice retention periods by two years. However, the law will only be applicable to entities under BaFin supervision one year later.
"Sometimes just manageable with a chuckle"
Federal Minister of Economics Robert Habeck acknowledged that the bureaucratic burden on German craftsmen is, at times, "just manageable with a chuckle." Yet, this burden isn't solely due to decisions from the traffic light government but also past federal government regulations and European Union exhaustive reporting requirements.
The Union perceived the proposed relaxations as partly sensible but generally timid. It also criticized the high number of employees in the federal administration. The CDU's Günther Krings stated that the current traffic light government has only showcased bureaucratic expansion while the AfD's Stephan Brandner called the bill a "haphazard patchwork." Lukas Benner from the Greens noted, "It's about simplifying tiresome processes and eliminating the unnecessary while acknowledging that bureaucracy isn't inherently negative; it serves as 'the foundation of our rule of law' and contributes to climate protection, environmental protection, and health protection."
The introduction of this law also includes changes in corporate law, requiring digitalization of operating cost statements and making it necessary to publish only remuneration details online. However, this law might pose a challenge for investigations, as suggested by Finanzwende, due to the reduction of receipt and invoice retention periods, potentially making it difficult to investigate serious tax crimes.
Additionally, the law provides easements for tax consultants, allowing them to send out digital tax notices without explicit consent from recipients, which could lead to a significant reduction in the number of letters sent, as mentioned by Federal Minister of Justice, Marco Buschmann.
