FEDEA (the Foundation for Applied Economic Studies) has today published a study by Jaime Vallés and Anabel Zárate (University of Zaragoza) quantifying the tax gap, defined as undeclared income in the Personal Income Tax (IRPF) across the 15 Common Regime autonomous communities between 2003 and 2022. The results show a sustained improvement in aggregate tax compliance throughout the analyzed period. In the early 2000s, declared income represented around 70-75% of…

The Treasury has managed to salvage what the Government describes as a “tax reform” in the final moments, although it is more of a new tax increase that will raise revenue by about €10.5 billion a year. The most significant change is for banks, which will not be taxed on profits but on revenues: it taxes the interest margin and commissions. This is not an extraordinary levy like the one…

In light of the evident opposition from PNV and Junts to maintaining the ‘impuestazo’ on energy companies and banks, the First Vice President and Minister of Finance, María Jesús Montero, admitted this Thursday that if the Government does not have ‘sufficient’ support in Congress, it will not be able to continue with these extraordinary taxes approved during the pandemic. Therefore, the ministry is working on reformulating the tax: it wants…