Tax fraud costs the European Union billions every year

In a report, the EU executive body warned that EU countries are losing billions to tax fraud and inadequate collection systems compared to 2019.

The report indicated that EU national authorities reported 1,056 fraudulent violations last year.

While these figures confirm the steady decline over the past five years, the EU Commission calls on Member States to adopt national anti-fraud strategies, establish effective control systems to mitigate new risks related to the EU budget and manage recovery funds.

The report added that “the EU’s unprecedented response to the pandemic provides more than two trillion euros to help member states recover from the impact of the Covid-19 virus. Working together at the level of the European Union and member states to keep these funds safe from fraud has never been more important. ” “.

In 2020, the most fraudulent or non-fraudulent cases affecting EU revenue were associated with undervaluation, improper classification or smuggling of goods, in particularly footwear, textiles, vehicles, machinery and electrical equipment.

However, customs fraud has struck in Member States differently during the COVID-19 pandemic. While the detection rates in Belgium, Bulgaria, Germany, Croatia, Hungary, Poland, Slovenia and Sweden were the highest in 2020 compared to the previous five years, detection rates in Italy, the Netherlands, Austria, Portugal and Slovakia were the lowest.

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