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Tougher rules for tax evaders

September 24, 2014

Germany is coming down harder on tax evaders, introducing draft legislation that foresees stricter rules for people who turn themselves in to escape punishment.

https://p.dw.com/p/1DJdt
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Image: picture alliance/dpa

On Wednesday, the German cabinet adopted legislation that raises the statute of limitations for tax evasion to 10 years from five.

It also lowered the threshold at which tax dodgers who come clean can avoid having to pay an additional fine. Until now, anyone who admitted to evading less than 50,000 euros ($64,2385) was not required to pay an extra fine. Evading more than 50,000 euros came with a fine of 5 percent.

Under the new rules, evading more than 25,000 euros will come with a surcharge of 10 percent.

The stricter legislation comes as the storied president of the Bayern Munich soccer club Uli Hoeneß is serving a 3 ½-year sentence for tax evasion, a case that spurred a fiery debate over economic justice.

Tax Evasion Trial - Uli Hoeness' fall from grace

Hoeneß, a soccer legend who also played for West Germany's World Cup-winning team in 1974, turned himself into authorities but a judge ruled that his disclosure was incomplete and thus disqualified him from exemption from punishment.

cjc/uhe (Reuters, AFP, dpa, AP)