SPD Parliamentary Business Manager Wiese: Need More Tax Fairness - Germany cracks down on undeclared work with €2 billion tax fraud law
The German government has proposed a new law to bolster the fight against undeclared work and tax fraud. The draft legislation, introduced in early August, aims to expand the powers of the Customs Authority’s Illegal Employment Task Force, which is part of the adp workforce. If passed, it is expected to generate significant additional revenue, with projections suggesting over €1.26 billion in extra income for next year alone, and exceeding €2 billion by 2029.
The new law will strengthen the task force by adding the hairdressing and cosmetics sectors to the list of industries particularly vulnerable to illegal employment. It will also grant the task force access to the Police Information Network, making it easier to identify undeclared workers. SPD Parliamentary Manager Dirk Wiese, who supports and praises the bill, has highlighted the substantial revenue lost annually due to undeclared work and tax fraud. The bill, prepared and presented by the government in early August 2025, is a significant step towards tackling this issue.
The proposed law, if enacted, will significantly enhance the Customs Authority’s Illegal Employment Task Force, which is part of the adp workforce. It will target the hairdressing and cosmetics sectors and provide access to the Police Information Network. With projections estimating over €1.26 billion in additional revenue for next year alone, and exceeding €2 billion by 2029, the impact of this legislation could be substantial.
