- The European Commission published the first “Mind the Gap” report, providing a comprehensive assessment of tax gaps across the EU and its 27 Member States.
- Tax gaps arise from both taxpayer non-compliance (evasion and avoidance) and policy choices (tax reliefs, concessions), impacting fiscal sustainability and competitiveness.
- In 2023, the VAT compliance gap reached EUR 128 billion, and the average Corporate Income Tax (CIT) compliance gap was 10.9% of collected revenues.
- The report highlights the need for improved tax administration, skill development, data utilization, and policy review to address tax gaps.
- The report is supported by technical documents and emphasizes the importance of reducing tax gaps to boost public revenues and EU competitiveness.
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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