Incomes reveal tax evasion
A particularly interesting finding has emerges from a survey by the Hellenic Statistical Authority on family budgets, which, if combined with the statistics of the Independent Authority for Public Revenue (AADE), raises questions as well as revealing the extent of tax evasion.
According to the figures of the statistical authority, the average annual expenditure of households on purchases in the year 2022 amounted to 19,204 euros or €1,600 per month, recording an increase of 12.7% compared to the previous year. Specifically, in 2021 the average annual expenditure of households was €17,038.
According to the latest published AADE data, the average declared family income in 2021 amounted to €12,750. That is, the average declared income was lower by about 25% than the spending made in 2021 (€17,038) by households, or by €4,288. In fact, the average monthly expenditure in 2021 was €1,419, while the average monthly family income was €1,062.
That is, households spent more than they claimed to have earned from their wages, other earnings, and various benefits they receive. One explanation that one could give is that it is a capital drain – i.e. they used their savings. However, from the figures of the central bank it appears that in 2021 household deposits increased by €8.5 billion (or 7%) compared to 2020. However, as it seems, part of the difference found comes from tax evasion, that is, from concealing taxable income.
The statistical data of AADE show that six out of 10 households declare to the tax office annual incomes that do not exceed €10,000, 37% of individuals show incomes at the poverty line (up to €5,000), and 659,258 taxpayers report zero income, including many students who are required to file a tax return.
Income concealment is more than evident, according to AADE statistics, mainly by freelancers and the self-employed, of whom 67.2% or about seven in 10 declare incomes that do not exceed €10,000. The total taxable income they declared to the tax office last year amounted to €4.3 billion, when their turnover was almost tenfold.
