This is the first time that Eustat has carried out a measurement of the non-observed economy, which has amounted to 6,214 million euros in 2020. Construction, commerce, hotels and transport are the sectors that present a higher percentage of hidden value added.
The underground economy represented a 8.7% of the GDP of the Basque Country in 2020, which means 6214 million euros, according to estimates made by the Basque Institute of Statistics. This is the first time that Eustat has carried out a measurement of the non-observed economy.
The sector in which a greater volume of underground economy is estimated is that of the constructionwhere it is believed to have accounted for 23.9% of its activity, ahead of the one grouped by tradethe hospitality and he transportwhich generated 17.1% of its wealth in a hidden way.
in relation to total value of the underground economy, the services sector is the one that makes the greatest contribution, with 74.1%. In turn, within the services sector, “Commerce, hospitality and transport” stands out with 32.9% and, in second place, “Real estate activities”, although at a considerable distance, with 19.4%. “Professional Activities” represent 9.9% and “Other Service Activities” -which include recreational and cultural services, computer repair activities and other items, as well as activities related to laundry and cleaning services, hairdressers and others beauty treatments-, 5.3%.
Submerged activities are those legal productive activities that are intentionally hidden –partly or totally– from public authorities, generally to avoid paying taxes or social security contributions.
For its part, the Gipuzkoa Provincial Council revealed 172.6 million euros of tax fraud in 2022 as a result of 90,020 actions in this area. In total, 59.2 million euros emerged in Personal Income Tax (IRPF) and in Wealth Tax, 36 million euros in Corporation Tax, 67.8 million euros in Value Added Tax (VAT) and, finally, 9.5 million euros in the rest of the taxes.
eitb.eus has spoken with the Bizkaia Treasury inspectors, Iñigo Egia and Joseba Garmendia, about the actions against tax fraud.
Source: Eitb
I’m Tifany Hawkins, a professional journalist with years of experience in news reporting. I currently work for a prominent news website and write articles for 24NewsReporters as an author. My primary focus is on economy-related stories, though I am also experienced in several other areas of journalism.