ATC detects €360.4 million in tax fraud

The Catalan inland revenue service (ATC) has detected in just two years €360.4 million in tax fraud, the result of routine investigation and inspections which have led to embargoes and evidenced poor tax practices. The Generalitat vice-President and Minister of Economy and Finance, Oriol Junqueras, said yesterday that the amount of unpaid taxes detected in 2015 (€190.3 million) was higher than that identified the following year (€170 million) “as the department's initial inspections were aimed at larger contributors, that by posing fewer difficulties, yielded higher quantities.” That is, in collecting larger debts, the department began with those owing most. The inspections are part of the department's plan for prevention and reduction of tax fraud and promoting good fiscal practice for 2015-2018, launched by the former minister, Andreu Mas-Colell. However, the actual number of requirements was higher in 2016 compared to the year before, withg interventions increasing by 17.97% from the 46,721 made in 2015 to 55,116 in 2016.

The largest part of the fraud uncovered is in property transfer tax and stamp duty, which account for 40.2% of the total and exceeded €145.2 million followed by death duties and donations at 37%, or €133.4 million. Junqueras explained that beyond the normal duties if the department, the inspections had a positive effect on educating the public on their duties as tax-payers which is reflected in the 14% increase in revenue collection from voluntary payment of death duties since 2014.

In the past two years, the Generalitat has embargoed accounts totalling €25.3 million. Apart from the inspections, the department is carrying out an 86 point public awareness campaign.