German Finance Minister Lars Klingbeil Announces Tax Crime Crackdown and Crypto Tax Reform

Finance Minister Lars Klingbeil, also SPD party leader, presented a new government action plan targeting tax and financial crime. In a widely circulated TikTok video he warned that assets such as a Porsche or a Rolex could be confiscated from offenders, stating “the Porsche and the Rolex will be taken away first”. The 26‑point plan calls for a joint centre against tax and financial crime at the customs authority, a data‑analysis hub that uses AI, mandatory cash‑register reporting, longer record‑keeping periods and tougher penalties – up to 15 years for organized tax fraud and the removal of the current self‑disclosure exemption.

The package also signals a shift in the treatment of cryptocurrencies. The finance ministry outlined a forthcoming reform of crypto taxation, including a possible one‑year holding period and stricter rules on the classification of crypto assets. Together, the measures aim to increase asset forfeiture powers, tighten enforcement and bring crypto investors under the same rigorous framework as other taxable assets.