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Tax smax - Italians evade 46% of income tax
Last year only 500,000 Italians declared an income of over 70,000 Euros, a figure that doesn't quite square with the sky rocketing sales of pricey yachts, up 35% on last year, huge holiday villas, up 17%, and a healthy trade in new luxury cars. In 2003 82,000 luxury cars were sold to Italians, among which 186 Ferraris, 1700 Porsches, 190 Maserati, 4749 large BMWs and 4371 Mercedes - each of which cost more than 50,000 euros. Under Berlusconi's
Government the Italian Tax Police - Guardia di Finanza - has improved
their systems and intensified operations to track down tax evaders. Now
the Italian tax cops can't quite believe the results. Simple cross checking
of company tax declarations with receipts - all this thanks Now, maybe
for the first time in history, what all Italians have always known and
considered quite normal has been officially reported and quantified. Now
we have figures that give an answer to the strange Italian phenomenum
- under which a population with average income can afford luxury The Italian Tax police has recently published their answer in a report that claims that the Italian blue chip companies do not pay taxes on half of their income and on average 46 in 100 euros earned by Italians is not declared and therefore not taxed. That makes a total of 200 billion euros in the black, and tax evasion by the blue chip companies accounts for half of this figure. According to the report the "terzo settore" or the service industry including commercial services, have been the most creative with their accounts, managing to hide more than 170 billion Euros in 2003 alone. The industrial sector is the most "honest" hiding only 17 billion euro. Small businesses claim that they do not declare some income in order to survive rising overheads, but rich employers are hiding income in order to buy yachts, luxury cars and villas. In the last 5 years the sale and registration of yachts over 24 meters in length has increased by 134% in Italy, while sales throughout the entire sector continues to grow at the pace of 35% each year. Sales of expensive holidays in destinations such as Cortina, Portofino and Capri have increased by 17.6% over the last year. Berlusconi's
government is in a tricky position as it heads onto the campaign trail.
While the incumbent Prime Minister is anxious not to upset his friends
and allies who up head the commercial giants that according to his financial
police are the worst perpetrators, the government clearly needs the missing
revenue. Felix Petrelli ©2004 |
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