Tax Evasion in Saxony: Over €176 Million Unpaid in 2024
Unlawful tax avoidance: Discovered illegal tax dodging amounting to approximately 176 million euros within Saxony - Illegal financial maneuvers in Saxony: Over EUR 176 million unlawfully withheld from tax authorities
Got your attention? Over €176 million in unpaid taxes were uncovered by investigators in Saxony last year! Yep, you read that right — million with an 'm'!
This eye-popping figure is the result of 2024 legally binding verdicts and penal orders in local tax fraud cases, as per the state's finance ministry. Susanne Schaper (Left party) questioned the ministry about this, and well... here we are!
Since 2010, this figure has consistently been in the tens of millions — except for 2021 when it dropped to €129.2 million. Before you sigh in relief, remember that these whopping sums are just the iceberg's tip: the "dark figure" — all the money that tax evaders manage to hide — is way higher!
"The dark figure is higher," Schaper confirmed. She pointed out that these numbers represent only the cases the authorities know about; the actual tax evasion amounts are larger than what's on the books. To tackle this, Schaper demands more personnel in the tax investigations department, arguing that the additional cost would be more than offset by the increased revenue. She maintains that especially in the corporate sector, finance offices must conduct thorough scrutiny.
The number of reports of tax evasion has been stable, according to the finance ministry. In 2024, there were 8,645 reports, similar to the 8,737 reports in 2023. Between 2010 and 2014, the numbers were in the thousands.
When it comes to combating financial crimes and tax evasion, Germany utilizes robust legal frameworks and collaborates with international bodies. In recent years, the focus has shifted to digital assets and crisis periods, and proposals include strengthening reporting obligations, enhancing international collaboration, regulating digital assets, and improving asset recovery mechanisms. As for Saxony, efforts to match the broader German strategy are being considered to bolster its anti-financial crime framework.
- In light of the staggering €176 million unpaid in taxes in Saxony due to tax evasion, it's crucial for the community policy to address this issue, particularly in the corporate sector, to enhance scrutiny and identify hidden tax revenues.
- The ongoing issue of tax evasion, with over €176 million unpaid taxes in Saxony last year, underscores the need for a comprehensive employment policy that integrates stringent tax investigations, empowering the department with adequate personnel to combat this widespread problem more effectively. Additionally, close collaborations with international organizations in the field of crime-and-justice are essential to addressing this general-news topic.
