Monday, April 30, 2012

Some data about the black economy in Spain


Black economy, also called underground economy or shadow economy, is the usually untraceable, and hence untaxable, business dealings. It includes both legal business activities which evade taxes and illegal business activities which are underground. And precisely, as these business activities are not recorded, they cannot be quantified, so the Ministry of the Economy, the Ministry of the Treasury and the Tax Agency can have no official figures. However, many universities, banks, State agencies, economic or social studies institutes and even EU commissions release their estimates about tax evasion and tax avoidance.
In July 2008, just before the onset of Spanish property bubble and the current financial crises, the trade union GESTHA, made up of workers of the Treasury Department, drew a very revealing report about the back economy in Spain, with data from all the above-mentioned sources. And here you have two outstanding figures from this report:
First, in 2004, out of the 4,017 people with assets over 10 million euros, only 727 paid the corresponding taxes. Therefore, 82% (3,290 fortunes) did not declare their wealth. However, it does not mean that black economy applies to wealthy people only, because it is a universal fraud, including millionaires who have their money in tax havens, as well as nobodies who work in black or cook their books to evade or avoid taxes.
Secondly, black economy is estimated to stand for 20%-25% of the Spanish GDP. According to the Ministry of Labour in 2004, the black economy represents 20%, whereas in 2005 the Spanish Credit Institution (ICO) estimated that it represents 25%. And in between, in 2002, a study of the European Commission estimated that it stands for 22% (only topped by Greece, with 30%) and very far from the Netherlands (2%) or Austria (1.5%). According to this study, the Spanish black market stands for 241,465 million euros. To put figures in context: it is 2,500 times more than the cuts expected in education in the region of Extremadura.
Can you image what we could do if all this money was declared and taxed, representing 20-25% of the Spanish GDP?


Sources:
About tax evasion: http://en.wikipedia.org/wiki/Tax_noncompliance
GESTHA, the trade union of the Treasury Department:
http://gestha.es/?seccion=actualidad&num=176
GESTHA’s estimates about the Spanish black economy:
http://www.gestha.es/archivos/informacion/monograficos/gestha_ucm/2008/ponencia-el-escorial-julio2008.pdf
Cuts in education in Extremadura:
http://www.hoy.es/20120423/local/plataforma-educacion-publica-estima-201204231252.html

    
     
     

8 comments:

  1. I have to agree with everything in this post. Thanks for the useful information.
    The best sitedata

    ReplyDelete
  2. خدمات جديدة يمكنك متابعتها من خلال شركة ركن البيت التي تقدم اعمال متميزة في مدن جديدة ومتخصصة في مجال النظافة مثل شركة تنظيف بالجبيل
    التي لديها لنظافة جميع المباني والمنشأت بواسطة عمالة متميزة ولديك ايضا شركة تنظيف بالاحساء
    التي تقدم خدمات اساسية يتطلبها جميع العملاء مثل نظافة الموكيت والسجاد والشقق والفلل فتحقيق خدمات النظافة المنزلية لن تجدها الا معنافي ركن البيت بواسطة العمالة المميزة التي تمتلكها والاليات التي تسادهم في ذلك اليك خدمة ايضا النظافة في مدينة القطيف عندما تبحث عن شركة تنظيف بالقطيف
    ستجد خدمات شركتنا امامك تحقق لك كل متطلبات النظافة التي ترغب فيها

    ReplyDelete


  3. بسم الله الرحمن الرحيم عميلنا العزيز نحن نقدم افضل خدمات تنظيف المجالس والشقق بافضل انواع التنظيفات المشهود لها عالميا
    شركة تنظيف شقق بالطائف
    شركة تنظيف مجالس بالطائف
    شركة تنظيف شقق بجازان
    شركة تنظيف مجالس بجازان
    شركة تنظيف شقق بحائل
    شركة تنظيف مجالس بحائل
    ونحن فى خماتكم 24 ساعة على مدار الشهر

    ReplyDelete


  4. In the name of God the Merciful We in the

    light of UK companies offer the best

    services in all cleaning Katenziv in

    apartments , boards and cabinets and

    Villas
    شركة

    نور المملكة

    شركة تنظيف بمكة
    And also we provide insect control for all

    insects flying and crawling and rat

    extermination
    شركة مكافحة حشرات بجازان
    We also offer moving furniture needed by

    everyone because of the expiration of the

    lease time or travel service
    شركة الصفرات لنقل الاثاث بالرياض
    And safety and God's mercy and blessings
    كما يوجد لدينا ايضا تنظيف المجالس والكنب والسجاد والموكيت باحدث الطرق الموجودة

    وافضل المواد التى تقضى البقع والاوساخ
    شركة تنظيف مجالس وكنب بحائل
    شركة تنظيف سجاد وموكيت بحائل
    وكل هذا بانسب الاسعار واقل التكلفة ونحن نعمل فى خدماتكم 24ساعه

    ReplyDelete
  5. I really impressed after read this because of some quality work and informative thoughts . I just wanna say thanks for the writer and wish you all the best for coming!. Fresh start IRS

    ReplyDelete
  6. Thank you for your post. This is excellent information.
    It is amazing and wonderful to visit your site
    goldenslot
    สูตรบาคาร่า

    ReplyDelete
  7. This blog is so nice to me. I will continue to come here again and again. Visit my link as well. Good luck
    cara menggugurkan kandungan
    cara menggugurkan kandungan

    ReplyDelete