Calls for Abolishment of Tax Returns for Employees
The German Tax Union (DSTG) has recently made demands for a simplification of tax returns for employees. This initiative aims to digitize and automate the process of creating tax returns to relieve citizens and improve the efficiency of tax administration.
Background and Demands
- Simplification and Digitization: The DSTG demands fewer forms and more digital solutions to simplify the tax return process. This should be achieved through automated tax returns that only need to be checked.
- International Examples: The DSTG refers to successful models from other countries that have already implemented similar reforms.
- Affected Groups: In addition to employees, retirees should also be exempt from the obligation to submit tax returns.
Possible Impacts
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Tax Burden and Financial Planning
- Simplification of the Tax Burden: Automated tax returns could allow employees and savers to better plan their tax burden and spend less time preparing tax returns.
- Lower Costs: The reduction of forms and evidence, as well as the introduction of digital solutions, could lead to cost savings.
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Digital Transformation
- AI Support: The introduction of interactive AI support and digital regulatory frameworks for compliance could enhance the efficiency of tax administration.
- Central Service Portal: A central service portal could facilitate access to tax information and services.
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Working Conditions in Tax Administration
- Improvement of Working Conditions: By automating tax returns, working conditions in tax administrations could be improved, as less manual work would be required.
Reactions and Statements
Florian Köbler: The federal chairman of the DSTG, Florian Köbler, emphasizes the need for comprehensive reforms in tax law to relieve citizens and increase the efficiency of tax administration.
Conclusion
The demands of the DSTG for the abolishment or at least a significant simplification of tax returns for employees could have far-reaching impacts on the tax burden and financial planning of savers and investors. Through the digitization and automation of the tax return process, not only could citizens be relieved, but the efficiency of tax administration could also be improved.