A Shocking Amount of Tax Evasion in Saxony: nearly €177 Million! 💸💰
Unlawful Tax Avoidance: Over 176 Million Euros Allegedly Evaded in Saxony - Financial fraud: Over 176 million euros allegedly evaded in Saxony
You won't believe it! In the past year, over 176 million euros in tax revenue was lost due to tax evasion in Saxony, as reported by the state's finance ministry. This breathtaking figure includes 2024 legally binding convictions in local tax fraud cases, revealed in response to a parliamentary question from MP Susanne Schaper (Die Linke).
Let's break this down: since 2010, the amount of evaded taxes has consistently been in the tens of millions, with an exception in 2021, when it reached 129.2 million euros. The "Sächsische Zeitung" and the "Leipziger Volkszeitung" had also reported on these staggering figures.
Schaper pointed out that the figure represents successful investigations but stressed that it only accounts for known cases of tax evasion - the actual number is higher. She argued that more resources should be allocated to tax investigation units, stating that the extra cost would be more than outweighed by the additional revenue generated. "The corporate sector requires rigorous scrutiny from the finance authorities," she insisted.
Reports of tax evasion seem to have remained steady, with 8,645 reports in 2024 compared to 8,737 in 2023. However, between 2010 and 2014, the number of reports was consistently in the thousands.
The call for action 📣
Given the recent increase in tax evasion cases, there's growing concern about the capacity of tax investigation units and the potential impact on tax revenue. To combat this growing complexity and volume of tax evasion investigations, the German federal government and its states, including Saxony, may need to step up their efforts against tax evasion and introduce new measures to counter tax-related abuses.
This would likely involve bolstering the tax investigation workforce, with an increased focus on personnel with specialized skills in forensic accounting, data analytics, and legal investigations to uncover intricate evasion schemes and ensure compliance. Increased staffing would not only help to rein in tax evasion and prevent revenue losses but could also create a positive ripple effect on the overall tax revenue.
Despite the challenges, total tax revenues in Germany have shown positive trends, with an approximate 8% increase year-over-year reported in early 2025. This growth is mainly due to joint taxes such as wages tax and value-added tax, which are vital revenue sources for both federal and state governments.
However, if left unchecked, rising tax evasion can erode these gains, making effective enforcement critical to maintaining the stability and growth of tax revenues in Saxony and across Germany. The fact that tax revenues accruing to the Länder, including Saxony, have shown a slight increase of approximately 6% up year-on-year, underscores the importance of continued improvement and better enforcement efforts to maintain this positive trend.
Conclusion 💡
Saxony must invest in its tax investigation workforce to address the rising challenges posed by tax evasion effectively. This is crucial to sustain and improve tax revenue streams, ensuring a secure financial future for all! 💪💰
- The Saxony finance ministry's report on tax evasion highlights the need for community policy to address this issue, emphasizing the importance of strengthening employment policies to combat tax-related abuses, especially in the business sector.
- As the General-news of increasing tax evasion in Saxony poses a threat to the state's financial stability, it is imperative that Crime-and-justice authorities implement rigorous enforcement measures to safeguard tax revenue and protect the interest of the public in the long term.
