welt.de
German Tax Audits Plummet 60% in a Decade
Germany's tax audit numbers dropped nearly 60 percent over ten years, impacting revenue and disproportionately affecting small businesses, due to fewer auditors and complex cases.
- What are the immediate consequences of the significant reduction in tax audits conducted by German states?
- The number of tax audits in German companies has decreased by almost 60 percent in the last ten years, falling to 140,000. The total number of tax auditors employed by German states also decreased by almost 10 percent since 2015, to 12,359. Consequently, tax revenues from audits have fallen from an average of over €16 billion annually in the 2000s and 2010s to under €11 billion in 2023.
- How does the frequency of tax audits vary across different company sizes in Germany, and what are the underlying factors driving this disparity?
- This reduction in tax audits is linked to a decrease in the number of tax auditors and increased complexity of audit cases. The decrease disproportionately affects small and micro-businesses, which are audited far less frequently than larger firms. While large companies are virtually continuously monitored, smaller businesses face audits only every 38 years on average, and micro-businesses every 150 years.
- What long-term impacts will the persistent shortage of tax auditors and increased complexity of audit cases have on German tax revenue and enforcement?
- The ongoing shortage of tax auditors, coupled with increasingly complex audit cases and the reallocation of auditors to other projects, will likely exacerbate existing inequalities in tax enforcement. The long intervals between audits for small and micro-businesses suggest a need for alternative, more efficient methods of ensuring tax compliance among these groups.
Cognitive Concepts
Framing Bias
The headline and introductory paragraph emphasize the decrease in tax audits and revenue collection, creating a negative framing. This sets the tone for the article and may lead readers to assume a significant problem exists without providing a complete picture. The article's structure prioritizes the negative trend, potentially downplaying the complexities of the situation.
Language Bias
The article uses relatively neutral language but the repeated emphasis on the decrease in audits and tax revenue collection could be seen as subtly loaded. Phrases like "brach um fast 60 Prozent" (collapsed by almost 60 percent) and "geht tendenziell immer weiter zurück" (is tending to decrease further and further) convey a sense of negativity. More neutral phrasing could focus on the changes in audit numbers and resulting revenue without implying negative judgment.
Bias by Omission
The article focuses on the decrease in tax audits and resulting revenue, but omits discussion of potential reasons for the decrease in tax evasion or increased tax compliance. It also doesn't explore the effectiveness of the audits conducted, or whether the reduction in audits has led to a significant loss of tax revenue considering other factors like economic growth.
False Dichotomy
The article presents a somewhat false dichotomy by implying that the only solution to declining tax revenue is to increase the number of tax auditors. It ignores other potential solutions such as improving tax laws, enhancing technology for tax detection or strengthening cooperation between tax authorities and other regulatory bodies.
Gender Bias
While the article mentions "Prüferinnen und Prüfer" (auditors and female auditors), the gender distribution among tax auditors is not discussed. The lack of data on gender representation within the tax auditing profession may be a bias by omission. The use of neutral language doesn't indicate explicit gender bias.
Sustainable Development Goals
The decrease in tax audits disproportionately affects small and medium-sized enterprises (SMEs), potentially increasing inequality. Large corporations face more frequent audits, while SMEs are audited far less often, creating an uneven playing field. This lack of oversight on smaller businesses may allow for tax evasion to go unchecked, worsening inequality.