Tax audit scandal: high earners escape the authorities!

Tax audit scandal: high earners escape the authorities!

In Germany, the number of tax audits among high net worth people fell by over 20 percent between 2021 and 2023. This development is causing outrage and criticism, particularly from the Left Party, which is calling for an increase in exams. The current figures highlight the challenges that the financial administration must overcome with regard to tax fairness and financial crime.

Experts emphasize the high efficiency of tax audits for top earners. Nevertheless, the decline in audits is often associated with a decreasing number of auditors in tax authorities. An analysis shows that there has been a trend towards reducing the number of exams for years. Historical data shows that the number of exams carried out on high earners has always been low: in 2005 there were 1,200 exams, in 2014 there were 980, in 2021 again 1,108 and in 2023 only 876.

Causes of the decline

The decline in the number of tax audits among high earners is not just a snapshot, but the result of systematic problems. The main reasons for the decline in auditors include an aging workforce and unattractive working conditions. In addition, there is often a lack of investment in the training of new examiners, which further exacerbates the situation.

• Überalterung der Prüferbestand
• Unattraktive Arbeitsbedingungen
• Fehlende Investitionen in die Ausbildung

In addition to these structural problems, digitalization of financial administration is necessary to increase the efficiency of audits and ensure tax fairness. The need for this digital transformation is being called for more and more loudly by many experts, especially in view of the complexity of financial crime.

Criticism of the government

The Left Party has sharply criticized the federal government and is calling for a reversal in tax policy. In her opinion, it is essential that there are more audits of high earners in order to achieve a fairer distribution of the tax burden. Given the falling numbers, the need for political action is obvious.

Targeted measures are required to overcome the challenges and strengthen trust in the tax system. The current discussion shows that it is not just about the number of tests, but also about how they can be carried out efficiently and effectively.

Further information on the challenges of tax justice can be found in the document Bundestag.