Germany’s new action plan led by Finance Minister Klingbeil and Justice Minister Hubig would scrap self-disclosure amnesties and raise penalties for organized tax crime, reclassifying tax evasion as a criminal offense with penalties up to 15 years.

The package envisages repealing leniency for voluntary disclosures, expanding criminal liability for tax evasion to a maximum of 15 years, and tightening penalties for organized tax schemes.

Investigations would be boosted by blockchain analysis and artificial intelligence, backed by a cross-agency data access framework within constitutional limits.

Preparations include reforming bakery receipt rules, maintaining electronic cash registers for sales above 100,000 euros, and potentially moving smaller transactions to electronic records.

Trade unions and business associations welcome the plan but call for faster implementation, modern IT infrastructure, and concrete timelines.

The government projects about one billion euros in additional revenue next year, though several details remain vague pending policy specifics.

The 2027 draft law is expected to broaden revenue intake, with exact figures depending on timing and scope of implementation.

Background notes cite prior coordination gaps between federal and state authorities and past delays in money-laundering probes, reinforcing the push for a centralized command and better cooperation.

Measures aim to boost enforcement capacity, close fiscal gaps, and improve data-driven cooperation across federal and state authorities.

Analyst Anne Brorhilker expresses cautious optimism, saying the plan reflects practitioner and academic input.

The plan contemplates changes to the burden of proof for assets of unclear origin, while maintaining a cautious stance on reversing presumption of innocence.

An electronic reporting system will require firms to report sales promptly and individually to curb VAT fraud.