Broker fraud or tax evasion?

I copied something from an authority and pasted it here and wrote in my own words how I interpret it for myself. That authorities can inquire about account movements if there is a legitimate interest.

If it appears differently to you, that’s okay. I have no problem with that.

But you cannot interpret something for yourself and then claim that it is the only correct interpretation and of course authorities can easily retrieve account movements. When retrieving, one only learns the things mentioned in post #50.

Apart from the fact that the amount should not even end up in the account if it was paid in cash.
If done well, even no tax auditor will notice it.

Incidentally, the black sheep among restaurateurs, craftsmen, and co. cheat not only on income but also on expenses.
I once read a nice report from a lessor of a restaurant property.
The tenant had disappeared without a trace, so the lessor decided to run the restaurant himself.
Allegedly, he did it tax-honestly towards his predecessor and as a result faced a lot of problems.
The new restaurateur suddenly had significantly higher revenues than his predecessor in the same restaurant without having changed the concept.
He took over the employment contracts for the staff and wanted to pay the wages. Then came the question of what happens to the rest, which they always got paid in cash on the side. Previously, all goods were bought with cash payments, and only every second invoice was recorded in the books.
The honest operator then had the problem that his numbers were significantly above the industry averages and therefore he regularly caught attention during tax audits and special VAT audits.

It’s the same with the craftsmen. The customer simply buys the tiles directly from the hardware store, and the tiler gets his payment in cash on the side, and suddenly the ratio of goods to services fits again.


Addition to the small business regulation:
In addition to the previous year’s limit of €22,000, there is also the limit of €50,000 for the current year. If he does not exceed €22,000 in the previous year and is not expected to exceed €50,000 in the current year, then he is still a small business owner in the current year as well. He would only lose the status in the following year.
Even a business over €30,000 in the current year could still fall under the small business regulation.

Or the pizza baker who is currently doing a to-go business and buys his goods cash at Aldi, but the pizza boxes from the supplier on account ;)

The way you describe the broker's behavior, I find it dubious. I do not pay incorrectly issued invoices. Therefore, formally complain that information is missing - contracting party according to the broker contract, tax ID and VAT must be included. I would also have the broker prove the license according to §34c Trade Regulation Act. Otherwise, the contract would be contestable. If the documents are complete: pay 7%. If there is no license: do not pay due to attempted fraud and report if he causes trouble. If there is no proper invoice - do not pay. If he insists on being considered a small business, I would have this confirmed by the tax office. This has nothing to do with stinginess or envy.