In Italy, the CGIA Research Office has uncovered that for every 100 euros collected by the tax system, 11.2 euros are improperly subtracted. This is an indication that tax evasion in the country stands at a staggering 11.2 percent. The artisans’ association has pointed out that these figures are not consistent across the country; there are clear regional disparities. For instance, the level of tax evasion in the regions of Calabria, Campania, and Puglia is considerably higher at 18.4 percent, 17.2 percent, and 16.8 percent respectively. On the other hand, the regions of the Autonomous Province of Trento, Lombardy, and the Autonomous Province of Bolzano have relatively lower tax evasion rates at 8.6 percent, 8 percent, and 7.7 percent respectively.
The CGIA also noted that despite the high levels of tax evasion, the trend is on a downward curve. The Ministry of Economy and Finance’s data for 2021 (the latest available) reveals that tax and contribution evasion in Italy amounted to a whopping 83.6 billion euros, with 73.2 billion of that amount being due to tax evasion. However, it’s worthy to note that this figure represents a decline of 24.1 billion euros or 22.4 percent when compared to the figures from 2016.
The CGIA underscores the need to continue the fight against tax evasion by being resolute with those who are completely off the tax authorities’ radar and equally decisive with those who, though ‘registered’, are being cunning in their tax dealings. However, CGIA is of the opinion that this fight should not lead to a tightening of criminal tax regulations with the sole intention of incarcerating tax evaders. They argue that until it can be proven with concrete data that penalties restricting personal freedom can effectively deter people from evading taxes and aid in the recovery of evaded sums, there’s no need for such drastic measures.
Instead, CGIA proposes a more measured approach to reduce tax evasion and bring Italy in line with European countries that have lower incidences of this issue. They suggest the development of a less aggressive, simpler, more transparent, and fairer tax system. They believe such a system will reward those who contribute to the economy by creating jobs and generating wealth, while at the same time ensuring sufficient revenue to keep the state machinery running and assisting those in need.
