Germany plans tougher tax fraud crackdown under Finance Minister Lars Klingbeil

Finance Minister Lars Klingbeil, together with Justice Minister Stefanie Hubig, announced a 26‑point plan to intensify the fight against tax fraud in Germany. The measures include a maximum prison term of 15 years for serious offenders and a new power for customs authorities to seize assets such as cars and luxury watches for up to 180 days without a conviction.

From January 2028, businesses with annual revenues above €100,000 will be required to install electronic cash registers, and the mandatory retention period for accounting records will be extended from ten to fifteen years. The burden of proof will shift to taxpayers to demonstrate that seized assets are legally acquired. The government expects the reforms to generate around €1 billion in additional revenue by 2027, while critics warn of a bureaucratic burden on small and medium‑size enterprises.

The plan also removes automatic immunity for voluntary self‑disclosures, aiming to deter repeat offenders. A joint customs centre for tax and financial crime will be established to coordinate enforcement.

These changes signal a significant tightening of Germany’s tax enforcement regime.