Government endorses legislation prohibiting employment of black workers
German Government Cracks Down on Tax Evasion and Money Laundering in Service Sectors
The German government has announced a new law targeting tax evasion and money laundering activities in barbershops, beauty salons, and nail studios. This move is part of a broader effort to clamp down on economic crime and reduce exploitation, particularly where illegal employment practices are prevalent in these service sectors.
According to government sources, these industries have been found to be involved in tax evasion, money laundering, and criminal gang structures in recent years. The new law aims to combat both black market labor and money laundering.
The legislation, spearheaded by Finance Minister Lars Klingbeil (SPD), will empower the Financial Control of Illicit Employment (FKS) agency to operate more independently. This includes the authority to handle fraud cases without overwhelming the judicial system.
Employees in these sectors will soon be required to carry official identification at all times, a measure similar to existing rules in the construction and hospitality sectors. Acceptable forms of ID include an identity card, passport, or substitute passport.
The planned measures also include better digital networking and data exchange between authorities to strengthen enforcement. This will enable more effective monitoring and investigation of potential illegal activities.
Minister Klingbeil emphasized a tougher approach against those profiting from illegal activities and exploitation within these service industries. The legislative changes are expected to generate additional revenue for the federal budget, states, and social security institutions, estimated to be €2 billion by the year 2029.
The new law will be debated in the Bundestag. If passed, it will mark a significant step forward in the German government's efforts to combat tax evasion and money laundering, and to protect the rights of workers in these sectors.
- The new law, aimed at combating black market labor and money laundering, will not only affect service sectors like barbershops, beauty salons, and nail studios, but could potentially extend to other industries within the finance and business realm.
- The German government's stricter stance against economic crime in service industries, including tax evasion and money laundering, is part of a larger initiative to ensure financial stability and fair business practices across all sectors.
