German States Urged to Block Bureaucracy Reduction Bill

The proposed law, aimed at easing company burdens, is criticized for potentially hindering tax fraud investigations.

The Bürgerbewegung Finanzwende has called on German states to oppose the Bureaucracy Reduction Act in the Bundesrat vote.
The law seeks to reduce the retention period for financial records from ten to eight years, raising concerns over tax fraud detection.
Critics argue that the shortened retention period could impede investigations into major tax fraud cases like Cum-Ex and Cum-Cum deals.
Finanzwende suggests an exception for entities under BaFin supervision, delaying the change by one year to aid ongoing investigations.
Several state finance ministers have already expressed opposition, citing the potential negative impact on state tax revenues.