Spain loses €240 billion in tax evasion

LAST UPDATED: 29 Jul, 2012 @ 08:52
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Spain loses €240 billion in tax evasion

By Rund Abdelfatah

A QUARTER of all financial transactions in Spain are being done ‘under the table’ according to tax workers.

These tax evasion schemes are costing Spain approximately €240 billion a year.

The report by tax workers union Gestha found the construction and property sectors are the worst offenders.

An estimated €8.6 billion is lost in fraud involving the sale of property, while another €2.1 billion is lost to illegal rentals.

Nearly six out of 10 rental agreements – estimated to be over a million – are made without contracts.

And most tax evasion occurs within the small business sector – in large part because accounts do not have to be audited, making fraud easier.

The union is calling for stricter government regulation to crack down on tax evasion, estimating that it would bring in at least €25 billion for the Treasury.

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  1. No surprise really, the Andalucia I know is a almost a tax free state where people cheat their taxes and openly work cash in hand without any sort of repercussions. The local ferias are the greatest examples of how bad things are as these general a celebration of the black economy.

  2. Of course there are black economies in most countries but the thing that surprises me most about Spain is how much it is done the open and it seems at very title risk. The expression “under the table” here is more like “over the table with bells on while police and inspectors drink coffee in a nearby petrol station”

    If Spain just addressed tax free rentals ( long & short term) and cash in hand work in bars, restaurants and clubs just in Andalucia they would fill a huge hole in the countries debt.

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