A new EU campaign against tax fraud and tax evasion has just been launched by the European Commission.
A video is available in 23 EU languages on the new web page, along with key information on the problem and the actions being taken.
The fight against tax fraud and tax evasion is on the agenda of the G20 Summit of 5-6 September.
WHAT DOES IT MEAN?
Tax fraud is a form of deliberate evasion of tax which is generally punishable under criminal law. The term includes situations in which deliberately false statements are submitted or fake documents are produced.
Tax evasion generally comprises illegal arrangements where tax liability is hidden or ignored, i.e. the taxpayer pays less tax than he/she is supposed to pay under the law by hiding income or information from the tax authorities.
Tax avoidance is defined as acting within the law, sometimes at the edge of legality, to minimise or eliminate tax that would otherwise be legally owed. It often involves exploiting the strict letter of the law, loopholes and mismatches to obtain a tax advantage that was not originally intended by the legislation.