A ‘Bankruptcy Declaration for Tax Fairness’?

A 'Bankruptcy Declaration for Tax Fairness'?

A significant decline in the number of tax audits targeting high-income earners has been revealed, with the German government’s response to a question from the Left’s Dietmar Bartsch providing the insight. In 2021, 1,108 tax audits were conducted, resulting in an additional 130 million euros in revenue. In 2023, this number dropped to 876, with an additional 75 million euros in revenue. Approximately 15,000 individuals fell into the category of high-income earners in both years.

Starting from 2024, this specific group will no longer be separately monitored and a mandatory tax audit for cases with significant income is no longer planned. As a result, no current figures are available. Bartsch has criticized the development, calling it a “politically willed failure” and a “bankruptcy declaration for tax fairness.”

The decline of over 20% in the number of tax audits and over 40% in the additional revenue within a span of just two years is not a coincidence, but rather a result of a deliberate policy, said Bartsch, adding that the former Federal Minister of Finance’s decision to scale back the audits and discontinue data collection fits the picture. He emphasized that the ministry’s numbers show that the more frequently audits are conducted, the higher the revenue is.

The Left’s politician appealed to Finance Minister Lars Klingbeil, urging him to make high-income earners subject to mandatory tax audits. He also called on the minister to ensure the tax authorities are properly staffed, so they do not have to watch as the top earners avoid responsibility.