The Ministry of Economy and Finance (MEF) recently published the “Report on the unobserved economy and tax and contribution evasion”. According to what emerges from the document, tax evasion has been decreasing for years. THE tax gapthat is to say that the ratio between what taxpayers owe to the tax authorities and the amount actually paid, gradually narrows.
The latest data analyzed by the Mef dates back to 2021 and it appears that, even if the amount evaded still remains very high (82.4 billion per year), as of 2017 it decreased by around 26 billion. A sign that in recent years, thanks to the implementation of targeted measures – such as the traceability of payments – considerable progress has been made.
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Tax evasion has been contracting since 2021
“The indications relating to the year 2021 confirm the medium-long term trend towards an unobserved contraction in the impact of the economy”. This is what we read in the latest report drawn up by the commission set up at the Mef, responsible for monitoring the progress of the work.underground economy in our country.
In 2021, economic activities that escaped statistical surveys and tax audits represented 9.5% of gross domestic product (GDP). Down about three percentage points compared to 2014. According to analysts from the Via XX Settembre department, in a decade “The impact of the underground economy on GDP would therefore have been reduced by a little more than a fifth.”
The reduction in tax evasion is notably due to value added tax (VAT), which has fallen by 70%. In figures, this means that we went from 35.6 to 17.8 billion euros evaded. However, it should be remembered that between 2020 and 2021, the indicator relating to the amount of sums evaded from personal income tax by self-employed workers and businesses began to increase again.
Fight against the underground economy: controls and collaboration with taxpayers
Obtaining this first important result can be attributed to two main factors. On the one hand, there is certainly theactivities to prevent and combat tax evasionwhich remains a key and essential element. On the other hand, the middle finger is highlighted effectiveness of controls. In this regard, MEF officials mention a better selection of positions to be evaluated, which had a strong impact in terms of simplification of procedures.
Without forgetting what concerns improving the efficiency of control mode. This last aspect has been favored in particular by the use of available information, thanks to the progressive adoption of systems based on artificial intelligence.
As often happens, it therefore seems that the right recipe lies precisely in the balance between the different factors at play. It is no coincidence that the Mef report highlights that today, the most important challenge for institutions is to find “a fair balance between the approach based on control and the collaborative approach between administrations and taxpayers”.
Look to the future with courage to reverse the trend
The positive results noted by MEF officials in the fight against tax evasion have allowed Italy to reach with a reasonable margin of advance the objectives to be achieved attached to the National Recovery and Resilience Plan (PNRR). “Net of trend reversals that could occur between 2022 and 2024 and the necessary caution that results from this, the objective would already be achieved in 2021”write the members of the commission established at the Mef in the report.
These are important data that show a great capacity of Italian institutions to face the endemic problems of our economy. A new demonstration that it is possible to fight against this terrible scourge which devours precious resources for the community every year. This is one of the reasons why it is useful and necessary to show this data.
It is necessary to restore a new consciousness to generations who have been discouraged for too long. It is possible to reverse the direction taken in the past, but to do so requires meeting this challenge with courage and determination.
