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The submerged economy remains 23% of the tax collection

The irregular activity has a cost of about 70 billion for the public coffers. Madrid and the forals, where less work in B hay; Andalusia, Extherme or Castilla-La Mancha, where there are more

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The submerged economy remains 23% of the tax collection

Do you think that in Spain re is a lot of tax fraud, quite, little or too little? It is one of questions that CIS carries out each year and that it gives some devastating results: 97% of respondents in 2016 answered that in ir opinion fraud on main taxes is very high.

More information
  • The chronic ills that lead to economy immersed in Spain
  • Economists figure in 26 billion loss of revenue from tax fraud
  • 11 Treasury priorities to combat fraud
  • The axis of poverty lives in submerged economy
  • A study highlights correlation between corruption and submerged economy

They count in dilapidated halls of Ministry of Finance that one of recent ministers of branch was years ago to buy gardening products to fix garden that had in his house of Sierra. It was a weekend and minister wore a cap and sunglasses because it was hot. After spending a few hundred euros in pots, land and or tools, shop clerk asked if he wanted invoice with VAT or without VAT. The minister got angry and left without buying anything.

Tax fraud spreads as an oil slick for all economic sectors of country on back of submerged, informal or irregular economy. Does not understand social classes, activities or professions. This is illustrated by a recent report prepared by Savings Banks Foundation (Funcas) and directed by Professor Santiago Lago. "In Prác

All of studies place us today above average of OECD and eurozone countries, "says publication regarding economy in B. The document puts in 23% loss of revenue from tax evasion. "This is equal to about 6% of GDP," says document. That is, almost 70 billion escape public coffers for this scourge and move Spain away from European average in public revenue. and refore, y reduce possibility of having higher quality public services. The report analyses a dozen studies on informal economy compared with or countries that place this opaque activity in Spain between 18.5% and 24.5% of GDP.

"The submerged economy increases tendentially in 1980s and first half of nineties, parallel to normalization in fiscal pressure in Spain in international context", emphasizes publication. Although it fails to conclude if it increases in years of crisis or not, truth is that in old House of Customs located in Calle de Alcalá de Madrid, where it has Hacienda headquarters, is convinced that tax fraud increases in recessions. To justify this y point to taxable bases of taxes on consumption. These grow at rates much higher than economy in times of Bonanza, because experts say, emerge activities that during crisis escaped Treasury to save taxes.

Experts who participate in study explain that level of actual collection is equivalent to 33% of GDP, while potential collection amounts to 41%. "Combining both percentages can conclude that fiscal gap — which may include tax benefits — is 20%," y point out. These places tax fraud in 20% for income tax and 35% for VAT.

Madrid, with less fraud

The document seeks to analyse submerged economy among autonomous communities. Although it warns that results should be analyzed with "caution" y conclude: "The submerged economy is higher in Canary Islands, Andalusia, Castilla-La Mancha and Galicia". The authors admit that ir estimates may be contaminated by productive structure, unemployment rate or tax pressure of each territory.

In spite of this y situate Madrid like community where less informal economy re, followed of Catalonia, Asturias and Cantabria. "The foral communities show levels of submerged economy lower than rest." In fact, Basque Country has an informal activity almost 30% lower than average and Navarre 25% lower only behind Madrid. The document recalls that autonomy with greater fiscal pressure is more likely to have more black economy.


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