Hamburg Tax Authority Faces Staffing Crisis, Left Party Demands More Audits

Hamburg's tax administration is grappling with a severe personnel shortage, prompting criticism from the Left party regarding its staffing policies. As of June 30, nearly one in four positions in the business auditing department was vacant, with only 526 out of 690 roles filled. The situation is even more acute in special VAT audits, where a staggering 39% of positions remain unfilled.

David Stoop, the Left party's spokesperson on budget policy, described the situation as a "looming collapse," warning that proper tax enforcement is becoming nearly impossible. He noted that audit rates have been declining for years, despite the dedicated efforts of remaining staff. After a rate of 2.9% last year, only 0.92% of audits were completed in the first half of this year.

The decline in audits is stark: 438 large companies were audited in the first six months of 2026, compared to 962 in the entire previous year and 1,146 the year before. Audits of medium-sized businesses also dropped significantly. The number of tax arrears has accumulated to 1.23 billion euros as of June 30, with income tax accounting for nearly 350 million euros of this total. The Senate noted that a substantial portion of these arrears are currently unrecoverable due to granted deferrals.

Stoop attributed the crisis to the "failed" personnel policies of Finance Senator Andreas Dressel. He urged Dressel to focus on ensuring taxes are collected and that large corporations and high-income earners are properly audited, rather than discussing alleged excessive personnel costs. Stoop argued this is a matter of fairness, especially in light of the Senate's planned cuts in social services. The Senate, in response, pointed to ongoing efforts to address demographic changes, labor market demands, and competition for qualified staff.