Monday, January 14, 2013

The best at tax evasion


Tax Justice Network is an international network of associations, academics and activists with a shared objective: fighting against tax fraud and black economy. In a report published in November 2011 about tax abuse worldwide, there is a list with the countries recording the highest black economy levels in relation to their GNP. Bolivia ranks the first, with 66% of its economy in the black market. Russia ranks number two, with 45%, and the list goes on with Papua New Guinea, Kazakhstan and Ukraine. The average world tax evasion is 18%, so one out of every six euros is not taxed.
However, if we get focused on the amount of money evading taxes (instead of the GNP), then the US ranks the first because every year 337,349 million dollars are lost to tax evasion. Brazil is the second and the list goes on with Italy, Russia, Germany and France.
What about Spain? In this report, Spain ranks number ten in the list of countries losing money to tax evasion. To be precise, Spain loses 82,000 million euros every year because black economy is not under control (it represents 22.5% of the Spanish GNP).
It is rather difficult to put such large figures into context, but here you have a good example: these 82,000 million euros lost to tax evasion stand for 14 times the total amount of the health and education budgets in 2013.
 
Health budget 2013: 3,852.27 M€
Education budget 2013: 1,944.73 M€
Total amount: 5.797 M€

Sources:
  1. Tax Justice Network website: http://www.taxjustice.net/cms/front_content.php?idcat=2
  2. Post at Delivering Data about black economy in Spain: http://www.deliveringdata.com/2012/04/some-data-about-black-economy-in-spain.html
  3. Tax Justice Network report about black economy: http://www.tackletaxhavens.com/Cost_of_Tax_Abuse_TJN_Research_23rd_Nov_2011.pdf
  4. The Spanish General State Budget of 2013: http://graficos.lainformacion.com/politica/presupuesto-estatal/presupuestos-2013-en-que-gasta-espana_W4M1nXSktquMQkDRSSpBR6
   
   
   
   

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