Tax Evasion is at 6-9% of the GDP

Screen Shot 2016-06-24 at 2.18.10 PM(Greece) – According to diaNEOsis, an independent research organization in Greece, tax evasion in Greece is estimated to be about 6-9% of the Gross Domestic Product, or GDP. This is the equivalent of about 32% of all public revenues and results in a state loss of around 16 million euros each year.

Currently the Greek state spends around 28 billion euros for pensions, 15 billion euros for wages, and 12 million euros to help manage their date. The organization said in the introduction to the report that was released on Wednesday, “Since 1975, [Greece] has voted 250 taxation bills and issued 115,000 ministerial decisions.” They used this information as an attempt to track what the underlying cause of the tax evasion issue really is.

The report also highlighted other statistics. For instance, they have found that 64% of those who are self employed declared income that was far below what they actually made. Around 49% of workers on salary declared an income of below 12,000 euros, which may or may not have been their actual income. Also, 900 of the largest business in Greece paid 69% of the taxes of individuals. Also, 8% of taxpayers who declared income over 42,000 euros paid 69% of the taxes by individuals. Most of the data was calculated from data from 2011.

The organization also went on to explain that the issue of tax evasion doesn’t necessarily paint a full picture of the state of the economy in Greece. They explained that during the economic crisis, which was definitely going in 2011, wages were cut while the tax burden on the people increased. Currently, Greece has just received the first wave of funds for its third bailout since 2010. Greece needs this income to pay off loans that are coming due to the International Monetary Fund and the European Central Bank. Despite the controversy that the bailouts and austerity measures have brought, the government feels they are doing the right thing.

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