- Union Representative: Financial Departments Prioritize Money-Oriented Sectors
The Head of the German Tax Union's Federal Committee (DSTG), Florian Köbler, proposes a tactical change for tax agencies to better pursue tax dodgers in sectors with substantial cash transactions. These sectors include hair salons, bakeries, butchers, retail outlets, the automotive industry, ice cream shops, and eateries.
As an example, a thorough digital risk assessment by the tax department would be beneficial. Cases indicating abnormalities in the risk system would then warrant further investigation, Köbler suggested to the Funke media group's newspapers (Tuesday). This would enable tax agencies to focus on genuine instances of tax evasion.
The risk of getting caught as a tax evader in the so-called cash-heavy industries remains relatively low, Köbler expressed. Typically, small business owners undergo inspections once every 80 years. The financial loss consequently is substantial. "We estimate that 16 billion euros in taxes are evaded directly in the cash-heavy zones. The overall annual economic loss, encompassing unpaid pension contributions, social security payments, and various other taxes, is likely to total around 70 billion euros."
However, Köbler noted, the chance for tax evasion among employees and retirees is significantly reduced. Tax authorities should avoid getting bogged down in minutiae.
The need for enhanced taxation measures in cash-heavy industries is evident, given the substantial tax evasion estimated to be occurring. Implementing stricter taxation policies in these sectors could help mitigate the financial loss.
