Tax Rebates & Refunds

Portugal losing billions due to tax evasion

December 23, 2012
Posted in Income Tax — Written by Chris

New figures have revealed that the Portuguese government is losing around €12 billion every year because of tax evasion.

An independent report – ‘Closing the European Tax Gap’ – has been produced by British tax consultant Richard Murphy Tax Research UK, in which it was revealed that Portugal has a huge problem with tax evasion.

According to the data, 23 per cent of the total tax revenue, or €12.3 billion a year, in Portugal is tax losses relating to criminal economic activities.

However, Portugal is not the only country struggling to claim tax back from tax evaders. In fact, it is only in seventh place in the report’s rankings on tax evasion losses and collectively, it is estimated that EU member states lose around €860 billion a year because of tax evasion.

Commenting on the damaging economic effects of tax evasion, Mr Murphy said:

“Tax evasion and tax avoidance undermine the viability of the economies of Europe and have, without doubt, helped create the current debt crisis that threatens the wellbeing of hundreds of millions of people across Europe for years to come.”

The report, commissioned by Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, was part of a new European Union action plan to crack down on tax fraud and tax evasion in the continent.

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