A huge problem
Estimates put the loss
at up to € 1 trillion a year
Tax fraud and tax evasion represents a huge problem and affects each and every European citizen. The problem knows no borders and can only be solved effectively with concerted, joint effort.
How big is the tax fraud and tax evasion problem ?
Huge sums are being lost due to tax evasion and avoidance. Estimates go up to € 1 trillion.
How does tax fraud and tax evasion happen ?
This money is lost in a number of ways including:
- Tax fraud and evasion which illegally deprive public budgets of money.
- Tax havens which facilitate tax evaders and avoiders by storing money offshore, often unreported and untaxed.
- Aggressive tax planning by big businesses or individuals, which exploits the limits of the law with the aim of minimising taxes paid.
How does tax fraud and tax evasion affect me personally ?
Think of the new classrooms for your children, the new hospital for your grandmother, the new railway lines and roads that could be funded if all that tax money could be recovered!
Why do we need to do more to fight tax fraud and tax evasion?
Tax fraud and tax evasion limit the capacity of EU countries to raise money and implement their economic and social policies. That could mean cuts in public services and a slower economy.
Moreover, tax fraud and tax evasion are fundamentally unfair. Why should you pay more tax or sacrifice your public services because someone isn’t paying their fair share?
Lastly, European integration has brought many benefits to citizens and businesses. As a Union of 28, we have a powerful advantage and if we act together we can stop tax evaders stealing from the pockets of citizens and we can reclaim vast sums of money they are legitimately due.