Italy’s fight against rampant tax evasion continues

Rome, Italy (AHN) – The fight against tax evasion continued in Italy as financial police claimed that nearly $68 billion of income went unreported last year, which was a rise of 46 percent compared to the previous year. Out of the total undeclared income, $27 billion belonged to only 8,850 employed workers.

In an attempt to avoid tax, Italians sent more than $13 billion to foreign countries – 26 percent of which ended up in Luxembourg, 25 percent in Switzerland, seven percent in Britain and six percent in Panama.

Responding at the report, Prime Minister Silvio Berlusconi said that a quarter of country’s economy goes untaxed last May, forcing Italy to struggle with huge public debt.

According to central bank’s prediction, Italy’s 2010 public deficit is likely to be under 5% of gross domestic product and public debt is expected to be 118.6% of GDP.

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