Modernization and digitalization of the fight against undeclared work

A federal government bill to modernize and digitize the fight against undeclared work was passed in the Bundestag. The draft law aims to make the customs administration's financial control of undeclared work (FKS) more efficient and effective. The core of this should be a more risk-based approach with automated data comparison by evaluating large amounts of data in order to better identify possible risks for the occurrence of undeclared work and to relieve the burden on law-abiding companies. AI should also be used by the authorities for this purpose. According to the draft law, checks and identity checks will be more digital and faster in the future. The FKS should focus its resources more strongly on organized crime and organized forms of undeclared work and should therefore be integrated into the police information network. In addition, the penalty and fine rules should be made more practical and the investigative powers of the customs administration should be expanded. In the future, the state authorities will also have expanded powers to combat undeclared work. The additional revenue for public budgets resulting from the new measures is estimated at around 858.4 million euros by 2029. The Finance Committee had a recommendation for a resolution on the bill, which recommended the adoption of the bill in an amended version. The Budget Committee also presented a report on financial viability. The federal government's bill was approved with 322 votes. 50 MPs voted against, there were 207 abstentions from the ALLIANCE 90/THE GREENS and AfD factions. Gerrit Huy (AfD) voted for the bill, Ronald Briller (AfD) and Georg Schroeter (AfD) voted no.