Spain loses €240 billion in tax evasion

240 Billion Euros lost to tax evasion
240 Billion Euros lost to tax evasion

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.

Article source: The Olive Press