Tax reforms need to account for fraud

Fraud incidences on income taxes, corporate taxes and the VAT account for 40 billion euros in lost revenues. But a tax on personal assets can help cover half the lost revenues and help reactivate the economy.

Politicians say that the fight against fraud is a top priority, but it is not clear whether Spain's main tax agency can increase revenues through measures to combat this fraud. It feeds a corrupt political scene, and there are little incentives to get rid of it. The next tax reforms should improve the government and the Tax Agency's ability to fight the fraud, which has a better chance of happening if the agency can divorce itself from the executive branch.