• Germany's news in English
 
app_header_v3

Tax officials 'sniff out evaders with sixth sense'

The Local · 27 Jun 2013, 12:02

Published: 27 Jun 2013 12:02 GMT+02:00

"It is already known in psychology that for example drug squad officers use unconscious learning processes to collect experience-based knowledge of how to identify suspects who then turn out, after checks, to be drug smugglers," said Enrico Schöbel, from the Institute for Public Finance and Management at Leipzig University.

"A similar experience-based process takes place with finance administrators dealing with individual cases," he said in a statement.

Schöbel has just published research suggesting that tax inspectors have this kind of sixth sense, in the German language journal Perspectives of Economic Policies.

"Just as police officers mostly cannot describe how they can tell who a drug dealer is, tax inspectors generally cannot explain how what makes a typical tax evader," he said. But as the bureaucrats work through a person's tax declaration, he said, they unconsciously use their experience to form an opinion on whether there might be something suspect.

"The challenge is to chose those tax declarations which should be more intensively checked - because without a closer look the person might end up paying too low a tax rate," said Schöbel.

He worked with tax inspectors across Lower Saxony for the study, to see how much experience-based instinct played a role in their decision-making.

Story continues below…

He said there seemed to be a strong correlation between the use of experience-based instinct when deciding which cases to put forward for more intensive checks, and the success rate of catching dishonest declarations and increasing tax bills.

The Local/hc

The Local (news@thelocal.de)

Your comments about this article

Today's headlines
President who pioneered Moscow ties dies aged 97
Former Cold War President of West Germany Walter Scheel. Photo: DPA.

Former West German president Walter Scheel, who helped pave the way for his country's rapprochement with the communist East, has died aged 97, his party's spokesman said on Wednesday.

Former East to lag behind West for years to come: study
Poverty in eastern Germany. File photo: DPA

Eastern Germany remains economically anaemic with little prospect of catching up with the rest of the country by 2030, a study published on Wednesday said.

Turkey's spy network in Germany 'thicker than Stasi's'
Photo: DPA.

Turkey has around 6,000 informants working in Germany, which experts say means they're each monitoring more people than the Stasi did in West Germany during the Cold War.

Germany's first 'intelligent' bridge to open in Nuremberg
File photo: DPA

An €11 million bridge, which is nearing completion in northern Bavaria, is set to include technology never seen before on the German Autobahn.

Stockpile food in case of attack, Germany tells citizens
Photo: DPA

Germany on Wednesday urged its population to stockpile food and water in case of terrorist or cyber attacks, as it adopted its first civil defence strategy since the end of the Cold War.

Ten injured after freight train crashes into bus in Osnabrück
The crash site in Osnabrück. Photo: DPA

A freight train crashed into a bus in Osnabrück on Wednesday morning, leaving several people badly injured, local media report.

Man wins ten-year court battle over €2.50 surcharge
Photo: DPA

An Austrian man has won a ten year court battle over an extra €2.50 he was asked to pay to get into a swimming pool in Bavaria a decade ago.

In Pictures
Düsseldorf swoons as Prince William comes for royal visit
'Well hello Mr. Prince'. Photo: DPA.

Prince William paid a visit to the Rhineland city of Düsseldorf on Wednesday to celebrate the state of North Rhine-Westphalia's 70th birthday. Here's a look at his royal stay.

Brexit
Frankfurt attempts to charm banks away from London
Frankfurt am Main. Photo: DPA

Germany's finance capital has spotted an opportunity with the Brexit-wary banking beasts of the Square Mile.

How did this bike end up on top of Berlin’s Molecule Man?
A professional climber 'rescuing' the bike hanging from the Molecule Man. Photo: DPA.

Berliners are still scratching their heads over how a bicycle ended up dangling from the capital’s iconic statue.

Sponsored Article
Why you should attend an international job fair
Gallery
Germany's 17 Olympic gold medals in pictures
Sponsored Article
Why expats choose international health insurance
Culture
7 American habits that make Germans very, very uncomfortable
Rhineland
Story of a fugitive cow who outwitted police for weeks before capture
Sponsored Article
Why you should attend an international job fair
Culture
Eleven famous Germans with surnames that'll make your sides split
Sponsored Article
Life in Jordan: 'Undiscovered treasure'
Lifestyle
The best ways to get a visa as an American in Germany
14 facts you never knew about the Brandenburg Gate
Society
Ten times Germans proved they really, really love beer
Sponsored Article
Why Jordan is the ‘Different’ East
Lifestyle
What's on in Germany: events for August 2016
Sponsored Article
Five things Americans should know about voting abroad
National
Six things you need to know when moving to Germany
Travel
These 10 little-known German towns are a must see
Sponsored Article
Jordan Pass: your ticket to the experience of a lifetime
International
German scientists prove birds can sleep while flying
Sponsored Article
Jordan: where history meets adventure
Technology
London v. Berlin: Which is better for startups?
Lifestyle
13 mortifying mistakes German learners always make
Sponsored Article
6 reasons expats use TransferWise to send money
Travel
Enter if you dare: Berlin's best abandoned haunts
Sponsored Article
Why you should attend an international job fair
Lifestyle
10 rookie errors all Brits make when they arrive in Germany
Sponsored Article
Five things Americans should know about voting abroad
National
How to get German citizenship (or just stay forever)
Sponsored Article
Jordan: where history meets adventure
Technology
Brexit will turn Berlin into 'Europe’s startup capital'
Sponsored Article
6 reasons expats use TransferWise to send money
Travel
Six soothing day trips to escape the bustle of Berlin
International
'Germany needs to make UK come to its senses'
Features
Six odd things Germans do in the summer
Features
How two gay dads cut through German red tape to start a family
8,647
jobs available
Toytown Germany
Germany's English-speaking crowd