“Limp colossal behind”
German tax law urgently needs reform
02/10/2023, 07:00 a.m
A lack of digitization, individual justice and too many detailed questions: German tax law is becoming more and more complicated – especially in international comparison. The bureaucracy is immense and almost impossible to cope with, tax consultants warn and are pushing for a reform.
According to the tax consultants, Germany’s tax law is becoming more and more complicated and can hardly be managed in the long term. Among other things, there must finally be more digitization, demanded the President of the Federal Chamber of Tax Advisors, Hartmut Schwab, in the “Augsburger Allgemeine”. “Germany is lagging behind other countries that have modernized their tax systems.” In addition, the striving for the greatest possible individual justice is becoming more and more of a problem with many laws.
“That prevents us from implementing pragmatic solutions and ultimately costs us an immense amount of bureaucracy, which is sometimes disproportionate to the income,” said Schwab. “Instead, thousands of detailed questions arise that bind staff and keep the courts busy.”
“Huge effort for 300 euros”
As the most recent example, the President of the Chamber named the federal government’s measures to combat rising energy costs: “The energy aid entails many complicated tax issues – and anyone who thinks that tax consultants are happy about it is wrong.” For example, with the 300-euro energy price flat rate, pensions are taxed according to different years. “A huge effort for 300 euros,” stated Schwab.
“For modern taxation, Germany needs more digitization, networking, less small-stateism and would also have to review its tax rates in international comparison,” demanded Schwab. Other European countries have long since introduced electronic invoices, which can be immediately and automatically compared digitally by all departments.