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According to "Spiegel", an increasing number of state finance ministers favour retaining the voluntary disclosure, even though it remains controversial. The CDU/CSU parliamentary group is likewise opposed to abolishing the voluntary disclosure that grants exemption from prosecution, but does not want this instrument to be misused by tax evaders. Many CDU politicians take the view that voluntary disclosure offers tax evaders a good opportunity to "return to honesty." Until a tax treaty with Switzerland is in place, NRW intends in any event to continue purchasing CDs containing data on tax evaders. NRW Minister-President Hannelore Kraft, SPD, would most like to see an automatic exchange of data finally achieved through a tax treaty with Switzerland. She also had harsh words for tax evaders: "I can no longer listen to all the excuses. Anyone who secretly hides money abroad still uses state services such as roads or daycare centres, and then complains about all the potholes and the lack of childcare places." Ms Kraft is also determined to tighten the rules on voluntary disclosure with exemption from prosecution in respect of tax evasion offences. She told Bild am Sonntag that she considers it very unjust that someone who files a voluntary disclosure because they have evaded taxes is no longer required to pay back taxes for years that are already time-barred, and she wants this to be changed. Carsten Kühl, SPD, coordinator of the SPD-governed states in the Bundesrat, takes the view that the instrument of voluntary disclosure is a prerequisite for achieving the automatic exchange of information in Europe. Swiss banks have no interest in turning their clients over to the German justice system. The voluntary disclosure would therefore make it easier for the credit institutions to press tax evaders to file such a disclosure. Monika Heinold, Finance Minister of Schleswig-Holstein, Die Grünen, is pleased that since 2010 the voluntary disclosure has brought her state more than EUR 160 million in additional tax revenue, enabling her to renovate university buildings and advance the expansion of crèches.
Frequently asked questions
Frequently asked questions
What is the voluntary self-disclosure with exemption from prosecution in tax law?
The voluntary self-disclosure (strafbefreiende Selbstanzeige) is an instrument that allows tax evaders to obtain exemption from prosecution by voluntarily disclosing the evaded taxes and paying them back in full. It is intended to offer tax offenders a path back to tax compliance. The provision is politically controversial but continues to be supported by many fiscal policymakers.
In a voluntary disclosure, do taxes also have to be paid for time-barred years?
Under current law, a voluntary disclosure does not require back payment of taxes for years that are already time-barred. This rule is politically criticised, and there are calls to tighten it so that back payments would also become due for time-barred periods.
Why does NRW continue to purchase tax CDs from abroad?
North Rhine-Westphalia continues to purchase CDs containing data on suspected tax evaders as long as no effective tax treaty with Switzerland is in place. The aim is to uncover tax evasion and curb revenue losses. In the long term, an automatic exchange of information between states is being pursued.
What role does voluntary disclosure play in the automatic exchange of information in Europe?
Voluntary disclosure is regarded as an important prerequisite for the introduction of an automatic exchange of information in Europe. Since foreign banks have no interest in reporting clients directly to the German judiciary, voluntary disclosure makes it easier for banks to urge their clients to come forward to the tax authorities.
What financial impact has the voluntary disclosure had on the German federal states?
Voluntary disclosures have generated substantial additional tax revenue for the federal states. Schleswig-Holstein, for example, has collected more than 160 million euros in extra revenue since 2010, which has been used for public investments such as the renovation of universities and the expansion of childcare facilities.