Tighter control over Spain's black economy

 

Spain's tax agency has announced a clampdown on the black economy.

A study comissioned by VISA in December of last year concluded that the 'Black' economy of Spain generated on estimated 205.2 billion euros in 2010 - equivalent to a fifth of the country's gross domestic product.

The plan is just a small part of the 2011 tributary controls, and the idea is to target those who do not declare their wages and who still receive unemployment benefit in particular.

The Hacienda propose to regulate this by having an increased number of inspectors visiting shops and businesses. The inspections will be based across the country as a whole and cover a number of different markets and industries.

A crackdown on the misuse of the Autonomo status will also comprise part of the investigation, and there will also be a greater degree of information being shared between the government departments.

The tighter controls will also look into how IVA payments are avoided by bogus facturas, and is import tax avoidance, notably involving products from the far east. Improved lies of communication between the Autonomous Communities and the Hacienda central office in Madrid are expected to help facilitate this initiative.