The German government is set to intensify efforts to combat undeclared work, with a draft bill approved by the Federal Cabinet on Wednesday. The initiative, announced by the Federal Ministry of Finance, aims to strengthen investigative tools, improve data analysis and streamline inspection processes.
Federal Finance Minister and Vice Chancellor Lars Klingbeil emphasized the government’s firm commitment to tackling tax evasion, undeclared work, money laundering and broader financial crime. He stated the importance of consistent enforcement of the rule of law in these areas.
The proposed legislation includes a modernization of customs financial controls. The government outlined the objectives as protecting individuals from exploitation and unfair working conditions, safeguarding state revenue and establishing fairer conditions for businesses operating within the legal framework.
Future inspection priorities will focus on key areas of undeclared work and illegal employment. A core element of the draft law involves the introduction of automated data analysis, designed to efficiently process large datasets and identify potential instances of undeclared work. Enhanced participation in law enforcement information networks and revisions to fines and penalties are also planned to more effectively address serious economic crime and organized criminal activity.