Taxman to strike at black market

12th February 2008, Comments 0 comments

Spanish tax and Social Security inspectors will start to cross-reference information on companies and employees under a plan unveiled Monday aimed at uncovering the full extent of Spain's black market economy.

12 February 2008

MADRID - Spanish tax and Social Security inspectors will start to cross-reference information on companies and employees under a plan unveiled Monday aimed at uncovering the full extent of Spain's black market economy.

The intensification of joint operations involving both agencies will target sectors where tax evasion is known to be widespread, including manufacturing and real estate. "We're going to target particular sectors... especially in more dynamic areas," tax office director Luis Pedroche said.

Spain is believed to have one of the largest black markets for goods and services in the European Union, possibly equivalent to between a fifth and a quarter of the country's total GDP.

Pedroche said that tax inspectors are also paying increasing attention to the longstanding practice in Spain of under-declaring the value of houses in order to avoid capital gains tax.

[Copyright EL PAÍS / L. ABELLÁN 2008]

Subject: Spanish news

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