Tax evasion in Italy and in EU: percentages, data and numbers nightmare – International Business Times Italian

In the area of ​​tax evasion during the current week data registers two opposed. The first concerns the funds allocated from the fight against one of the worst evils afflicting the Italian economy. In 2015 they will exceed 14.2 billion euro collected in the previous year, a figure which already marked a real record. Bearing in mind also that in 2014 the IRS had brought in their vaults a billion more than in 2013, The good news is that the system to combat tax evasion is making progress.

The second fact that we have mentioned is instead contained in the 2016 report of the research institute Eurispes. According to estimates in the report, the ‘Italian GDP would submerged € 540 billion. A vast number considering that the official GDP instead amounts to 1.500 billion euro. It should be noted that the 540 billion will be added a further 200 which were not included in that stemming from the criminal. 740 billion in all, then, as part of which, considering a tax rate of 50%, tax evasion (by itself) is worth 270 billion. Do the math at this point is quite simple. According to calculations by Eurispes tax evasion in Italy would be worth 18% of GDP. If account is taken of the submerged salt is in general rather than 35%. A figure much higher than that published by Istat, according to which, the underground economy in Italy, namely the set of all economic activities which contribute to GDP officially observed, but which are neither registered nor taxed would amount to about 17-18 percent of GDP.

The Evasion in Italy

Before you must have a premise: the submerged and on ‘tax evasion are not there, because there may be, figures, but only estimates. Everyone then makes its accounts according to various parameters and draws its conclusions. Below we present some data that in fact are different estimates:

• According to the report published in 2014 on tax evasion based on Ministry of Economy Istat, the extent of undeclared national in 2008 ranged between 255 and 275 billion euro, figures in percentages are 16.3% and 17.5% of GDP.

• Worst data of Bank of Italy that in the years 2005-2008 the underground economy amounted to 16.5%, a percentage which must be added a 10.9% resulting illegal economy (total 27.4 %). Speaking only of 2008, however, the technicians of the Bank of Italy recorded unobserved economy amounted to 31.1% (18.5% of its economy and 12.6% related to criminal activity).

• The data of the Court of Auditors (reference period 2010-2013) speak more in detail of 34-38 hidden payments every 100 euro invoiced or declared.

• The latest figures published belong to Confindustria estimates that tax evasion and contribution to 122.2 billion euro in 2015, equivalent to 7.5% of GDP. The tax authorities are subtracted almost 40 billion VAT, personal income tax of 23.4, 5.2 of IRES, IRAP of 3.0, 16.3 to other indirect taxes, which add 34.4 of social security contributions. Figures that do not correspond to the calculations of our government that speaks in DEF 91.4 billion average in the period 2007-2013.

In 2013, according to the latest “official data “published on a gross domestic product of 1.6 trillion, evasion amounted to 180 billion (10%). Today, according to Eurispes, the figure would rise to 90 billion more of GDP instead fell to 1.5 trillion and would therefore risen to 18%.

Tax evasion in Europe

Every year in Europe are lost altogether between tax avoidance and evasion about 1,000 billion euro of which, 860 and 150 of evasion of evasion, a figure that corresponds to the entire continental budget for 2014-2020 or the annual deficit of all EU states put together, so to speak.

Of these € 1,000 billion, according to the Tax Research in London, 180 belong to Italy, a country where the tax amounts to hidden 350 billion Euros and the relationship between the black and the GDP is approximately 27%, the highest percentage of all the European Union. To understand how serious the situation is, just bring the percentages of the major EU countries:

• Britain: 12%,

• France: 15%

• Germany: 16%

• Spain: 22%

• Belgium 22%

Doing a quick calculation, the average of these five countries amounted to about 17% of GDP, a percentage that we overcome 10 points.

VAT Evasion in Italy and in Europe

Of course, we repeat, are only estimates. That is why we provide you with the information published last December by the Confindustria Research Centre. Again, Italy is the top places in the standings. In reference to VAT in fact we placed second after Greece, with a 33.6% evasion. What about the other countries?

• Spain: 16.5% of VAT evasion

• Germany 11.2% of VAT evasion

• France: 8.9% VAT evasion

• The Netherlands: 4.2% VAT evasion

If regarding the value added tax the media settled at about 10%, we get over the more than 23 percentage points.

The percentage of VAT evasion reported by Confindustria is also confirmed by Eurostat’s calculations, that the gap between what the IRS collects from ours ‘VAT and what theoretically should be collected on the basis of existing rules in 2013 was 47.5 billion.

The difference was calculated by the same European Commission about a handsome 33.6% to 2013. In absolute terms, the highest value in Europe, while in percentage terms we are overtaken by Lithuania (37.7%), (Romania 41%) and Slovakia (34.9%). Much better than countries such as Finland (4.1%), the Netherlands (4.2%), Sweden (4.3%), Luxembourg (5.1%), Slovenia (5.8%) and dlla aforementioned France (8.9%)

Overall, in the EU were lost 168 billion of receipts VAT revenue losses amounted to 15.2%. Again, needless to say what the difference is between our data and the continental average.

It seems clear, then, as the euro recovered 14.2 billion in 2015 according to estimates by MEF appear first signal However, that improvement continues to affect too little sull’evasione total of our country. Every year, we lose billions upon billions that could be used to reform virtually all areas of our country, fund innovation and development, save the culture and create greater social equity. Miracles are difficult to achieve, but down a bit ‘our rates in order to conform to other EU countries might be well and good.