The Federal Auditing Office has identified clear shortcomings in Germany’s fight against tax crimes, according to a report cited by the Bild newspaper’s Saturday edition, based on an audit report for the Bundestag’s Budget Committee.
The office says that the Federal Central Tax Office (BZSt) has so far failed to fulfill its statutory duty to support the Länder in preventing and prosecuting major tax offenses. The auditors point out a lack of clear duty structures and insufficient personnel and technical resources. While tax-crime prosecution primarily falls under state jurisdiction, the federal government is obliged to assist, especially in cross‑border or international cases. The Auditing Office believes its role in this regard has been limited.
The Länder have reported significant additional support needs. They propose better coordination, a more intensive exchange of data, and the establishment of a central service centre at the BZSt. The Federal Ministry of Finance has not implemented many of these suggestions, citing legal jurisdictional issues and limited budgetary resources.
However, the Auditing Office finds these justifications unconvincing. A study by the Scientific Services of the Bundestag concludes that a stronger supportive role for the federal government is legally feasible.
According to the Auditing Office, existing deficiencies already have concrete consequences. For instance, potential tax revenues from international datasets such as the Panama Papers have not been realised. The auditors therefore call for a stronger Federal Central Tax Office and improved cooperation between the federal government and the Länder to enable more effective prosecution of tax crimes in the future.