The German Tax Union (DSTG) is advocating for significant simplifications in the process of filing individual tax returns. Florian Köbler, federal chairman of the DSTG, expressed these demands in statements to the Funke-Mediengruppe newspapers. The union’s core proposition centers on reducing the complexity of tax law, calling for fewer forms, reduced documentation requirements and increased digital solutions.
Köbler suggested a move towards standardized allowances rather than detailed individual calculations wherever possible, arguing this would save considerable time, stress and financial resources for millions of citizens. He emphasized that digitalization offers a viable pathway to automate data collection and verification, contributing to a more accessible and user-friendly system. He believes greater clarity in tax regulations would benefit all citizens, ensuring no one misses out on potential tax advantages.
A particularly radical suggestion put forward by Köbler is the abolition of the standard income tax return for employees. The proposed alternative envisions a system where tax returns are generated automatically and then reviewed and, if necessary, supplemented by the employee. He pointed to the successful implementation of similar models in countries like Austria as proof of the system’s technical feasibility and effectiveness. Furthermore, he proposed that retirees be exempt from filing tax returns entirely, with automatic tax withholding facilitated directly through the pension fund.
The DSTG, representing the personnel of the tax administration, typically focuses on improving working conditions within the tax authorities. However, its current proposals extend beyond internal improvements to directly impact citizen interaction with the tax system.
Köbler further championed the increased utilization of Artificial Intelligence (AI) to streamline processes. He called for the rapid implementation of a centralized, user-friendly service portal for the tax administration, incorporating interactive AI support, personalized areas for managing tax obligations, digitized regulatory frameworks to facilitate compliance and a compilation of available funding programs. According to Köbler, such a platform would be crucial for enabling citizens and businesses to leverage a digital, modern and efficient service.