German plans to reverse the reduction of bookkeeping records’ retention period for companies have been defended by the German Federal Ministry of Finance.
The ministry’s spokesperson, in a statement on Monday in Berlin, said that the fight against tax fraud is a matter of justice, citing Finance Minister Lars Klingbeil’s previous statements. Klingbeil had emphasized the importance of this issue when he took office and the developments can be seen in that context, the spokesperson added.
When asked if the ministry was concerned about a potential credibility issue if measures to reduce bureaucracy were rolled back, the spokesperson declined to share the underlying concerns. However, he emphasized the ministry’s intention to take a harder stance, particularly in the pursuit of criminals who enrich themselves at the expense of the general public.
It is true that the shorter retention period was initially intended to advance the simplification of bureaucracy, the spokesperson quoted the minister as saying. However, the consistent pursuit of tax fraud is also a significant concern, the spokesperson added.
Under the previous administration of Christian Lindner, the FDP, the retention period was reduced from ten to eight years in the name of bureaucracy reduction.