Klingbeil wants to rigorously combat undeclared work with customs investigations!

Klingbeil wants to rigorously combat undeclared work with customs investigations!

Federal Finance Minister Lars Klingbeil (SPD) has announced an increased fight against undeclared work and tax fraud in Germany. On the occasion of his first major official act as finance minister, he declared: “I would like to send out my customs officers, there is enough to look at.” This statement aims to address the significant lost financial resources that the state loses annually due to undeclared work and illegal employment. These are losses in the billions. In this context, Klingbeil criticized his predecessor Christian Lindner for a lack of ambition in combating these problems. Despite the existing staff shortage, the federal government plans to make better use of the existing customs officers.

On Tuesday, February 7, 2024, customs in Hamburg will present the 2024 annual balance sheet, in the presence of Klingbeil. This assessment comes at a crucial time, as the issue of undeclared work is far from new in Germany and represents a lasting challenge. While Klingbeil has only been in office for three weeks, he points out the long duration of the problem.

Current developments and statistics

The proceedings against undeclared work initiated in 2023 show the urgency of the measures. According to the Zoll.de 49,000 administrative offense proceedings and over 101,000 criminal proceedings were initiated nationwide. Compared to previous years, there was a noticeable increase in proceedings for violations of minimum wage regulations. Customs focuses in particular on critical sectors such as the construction industry, the hotel and restaurant industry and building cleaning.

The results demonstrate the fact that measures are necessary to combat organized forms of undeclared work. Organized crime was classified as a focus in over 50 procedural complexes. Katja Hessel, Parliamentary State Secretary, praised the successes of the Financial Control of Undeclared Work (FKS).

Financial impact and measures

Last year, the FKS investigations led to prison sentences of almost 990 years and total damage of around 615 million euros. This amount of damage consists of unpaid social security contributions, taxes and other financial damages caused by violations of labor and minimum wage laws. The tests not only took place without suspicion, but were also based on specific information and risk assessments.

In addition, the FKS will continue to check whether employers have properly registered their employees for social insurance and whether minimum working conditions are being met. In view of the growing challenges associated with undeclared work, Klingbeil reiterates the need for decisive measures to sustainably combat the corresponding crime.

In a political context, Klingbeil also commented on the situation in Israel. He defended solidarity with Israel as the only democratic country in the region and reiterated Israel's right to self-defense after the Hamas attack in October 2023. However, he criticized the proportionality of the subsequent military operations in Gaza and called for the release of all Hamas hostages. He sees the solution to the conflict in a well-founded two-state solution.