Tax debts in Saxony-Anhalt: record high alarms politicians!

Tax debts in Saxony-Anhalt: record high alarms politicians!

In Saxony-Anhalt, tax arrears from both companies and private individuals are reaching alarming proportions. According to current information, the total amount of outstanding taxes in 2022 is over 177 million euros, which represents a significant increase compared to the approximately 100 million euros in 2019. These statistics come from a small inquiry by the left-wing faction in the state parliament, which draws attention to the worrying development. In view of this situation, parliamentary group leader Eva von Angern is calling for more commitment from the state government to combat tax evasion. In particular, she calls for a focus on well-equipped tax investigations and more intensive tax audits, as social services are at risk due to increased tax arrears.

The situation becomes even more dramatic when you look at the Treasury Department data. Outstanding taxes from professionals, companies and heirs have almost doubled since 2016, from 78.7 million euros in 2016 to almost 164 million euros in 2022. The largest part of the arrears relates to sales tax at almost 68 million euros and income tax at around 62 million euros. These trends show that arrears on the most important types of taxes are developing significantly.

Tax evasion and its consequences

In the previous year, a decrease in evaded taxes was noted. In 2022 there were 33.59 million euros in evaded taxes, while in 2021 16.6 million euros were recorded. According to the Ministry of Finance, gang-related sales tax fraud and the issuing of fictitious invoices represent the greatest risk. However, there is a lack of reliable data on the financial damage caused by tax evasion. The already critical situation is being exacerbated by a decline in tax audits. Audits of large companies fell from 1,105 in 2010 to just 634 in 2020.

There are also declining audit numbers in medium-sized and small companies. The number of criminal tax proceedings fell from 1,390 (2010) to 968 (2022) in the same period. Eva von Angern is concerned about this decline and emphasizes the need for better judicial equipment to consistently punish tax evasion.

The current developments illustrate the urgent need for action in Saxony-Anhalt. In addition to increasing the frequency of checks, the Left also calls for measures to secure resources in the tax offices in order to ensure a long-term improvement in tax revenue and thus social services. Given the growing tax arrears, it is essential to take both preventative and reactive measures to stabilize the state's financial situation.

The discussion about these issues remains tense because political actors have to position themselves on the necessary steps and the priorities within the state government. The coming months could be decisive in determining how effectively Saxony-Anhalt responds to these challenges.

All information can be found on stern.de and volksstimme.de be read.