Europe's Shadow Economy

EUROPE'S SHADOW ECONOMY Debating Europe www.debatingeurope.eu 1 trillion € ESTIMATE OF THE SIZE OF THE POTENTIAL TAX REVENUE LOST ANNUALLY TO TAX EVASION AND AVOIDANCE IN THE EU SHADOW ECONOMY IN 2011 (% of GDP) 514 billion € BULGARIA 32.3% ROMANIA THE EU-27'S TOTAL BUDGET DEFICIT IN 2012 29.6% LITHUANIA 29.0% ESTONIA 28.6% LATVIA 26.5% UK LATVIA CYPRUS 26.0% ISLE OF MAN GERMANY - IRELAND NETHERLANDS ALLEGED MALTA LUXEMBOURG JERSEY, GUERNSEY 25.8% ALDERNEY TAX HAVENS LIECHTENSTEIN POLAND - SWITZERLAND 25.0% SAN MARINÓ MONACO GREECE 24.3% SLOVENIA 24.1% GIBRALTAR MALTA CYPRUS HUNGARY 22.8% ITALY SHADOW ECONOMY AVERAGE TAX LOSS IN THE EU 21.2% PORTUGAL 19.4% CO 1/5 of the EU's GDP SPAIN 19.2% BELGIUM 2/3 17.1% UNDECLARED TAX LOSS CZECH REP. WORK 16.4% 4x EXCEEDS TOTAL SLOVAKIA HEALTHCARE SPENDING 16.0% TOTAL EDUCATION IN THE EU SPENDING IN THE EU SWEDEN 14.7% 1/3 DENMARK BUSINESSES 13.8% UNDERREPORTING PROFITS FINLAND 13.7% TOTAL BANK DEPOSITS OVERALL TAX-TO-GDP RATIO GERMANY 13.5% € trillion, 2011 The sum of taxes and social contributions IRELAND in % of GDP, 2011 12.8% DENMARK FRANCE BELGIUM 47.7% 44.1% 11.0% EU-27 SWEDEN USA UK 44.3% 10.5% BULGARIA 6.4 27.2% 22.2 NETHERLANDS LATVIA 9.8% LITHUANIA 26.0% | 27.6% LUXEMBOURG JAPAN 8.2% 5.6 AUSTRIA 7.9% Sources: EP, Tax Justice Network, Eurostat, EBF, EC.