This means that Jone and Unai have to pay less VAT than they would if it was charged on the full amount. The seller will also declare less income than he actually received.
Over the last few years, there has been a considerable increase in the problem of tax fraud and evasion. The globalization of the economy and technological advances have given tax fraud acquire an international dimension. In the following activities, you can see what happens in this area around the world and closer to home.
On the Tax Justice Network website you will find a report with information on the shadow economy in over 145 countries:
In the table on page 4 of the report, you can see the following figures for the 10 countries with the highest rate of underground economy and tax evasion:
With the figures shown in this report, answer the following questions:
Read the article Tax havens and answer the following questions
How is the Gipuzkoa provincial revenue office working to reduce tax evasion? What does it do?