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With the taxman all Pinocchio: lies for over 120 billion

Untrue declarations on income are often added to the lies of respondents in tax sample surveys - Tax evasion is still very high and modifies the redistributive impact of the tax authorities

With the taxman all Pinocchio: lies for over 120 billion

In dealing with the taxman we are all a bit of a Pinocchio: untruthful tax returns are often joined by the lies of those interviewed in sample surveys. This is the so-called under reporting: the subjects interviewed lie about their incomes, underestimating them for fear that links can be established with what they have declared to the tax authorities.

Underreporting mainly concerns taxpayers subject to self-taxation, corresponding to the highest income classes (from 40-60 thousand euros and above). On income from self-employment and business, 23% of the interviewees (basically, one out of 4) does not tell the truth, and the rate increases again for capital and rental income: 44%. It goes without saying that underreporting does not occur for employee compensation.

But what are the consequences of these lies to the taxman? The latest dossier developed by the Impact Assessment Office (January 12) which carries out analyzes of public policies, estimates a total evasion rate of approximately 37% for self-employment and 65% for annuities. The absolute value of the total income evaded would fluctuate between 124,5 and 132 billion euros.

With consequences also on Irpef, because – it is pointed out – the redistributive impact is modified, reducing its progressiveness: the effective average rate decreases by around 4 percentage points, going from around 20% to 16% (without evasion).

1 thoughts on "With the taxman all Pinocchio: lies for over 120 billion"

  1. But send you all to ca,,, kings, solons and catons. The taxman is the greatest theft we suffer to pay for the privileges of the country's political and economic caste.
    An example above all: when I invest part of my pension (already taxed at the source) and I manage to collect a dividend or a capital gain, due to the risk incurred; the hawkish taxman arrives and subtracts 26% from me, if I lose it's my c..zi.
    This is without counting that in addition to the 34 percent tax I pay VAT and other municipal and regional levies.
    Dear Sheriff of Nottingham continues firing on the oppressed people

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