Benefits system leading to spike in tax evasion

Government policy for subsidies and benefits for people on lower incomes, which in practice has no monitoring mechanisms checking declared incomes, is leading to an increase in tax evasion and failure to get resources to the people who need them most.

The allowances for children and housing, as well as reduced contributions toward pharmaceutical expenditure, the new method of calculation of social security contributions for professionals and the policy of protecting main residences from repossession and auction strengthen the motive for tax evasion.

Those interested in fooling the taxman could even go as far as bogus divorces, particularly when they fully understand the new system that will apply as of January 2019 - provided of course the state meets its fiscal targets for the so-called countermeasures to be activated as planned for that specific year.