BERLIN, April 22 (Reuters) - German Chancellor Angela Merkel's cabinet has approved a draft law that would give the government additional powers to oversee companies and individuals that do business in tax havens.
The draft, which must still be approved by parliament, is part of a crackdown on tax dodging that was launched last year by Finance Minister Peer Steinbrueck after German investigators uncovered evidence that wealthy Germans were secretly parking cash abroad.
The domestic measures are meant to complement an international drive to pressure countries like Switzerland and Liechtenstein to relax their rules on bank secrecy.
The draft law agreed at the Wednesday cabinet meeting after weeks of negotiations within Merkel's "grand coalition" of conservatives and Social Democrats (SPD) would force individuals making 500,000 euros or more to keep more detailed records on their income taxes for a longer period of time.
It would also give the government the power to audit their tax records randomly, even when there was no suspicion of wrongdoing.
Sanctions could be imposed against individuals and companies who are unable to prove that their businesses in tax haven countries are not a front for avoiding paying taxes in Germany.
Members of Merkel's conservatives have voiced opposition to some of the measures in the draft law, including the 500,000 euro income threshold, and vowed to alter it when it goes before parliament in the coming months. (Writing by Noah Barkin; Editing by Andy Bruce)