GrapeEater

OK Guys... you all must have an opinion on tax dodgers, working in Spain for 'cash in hand'. There's def' a few where I live - regular Brits in UK reg'd vehicles, white vans (no company name on the side) doing building work, gardening, pools, pool cleaning, taxiing, selling door-to-door, commissions, market stalls.... etc, etc.

Of course I have also seen Russians, Polish, Moroccans, and Spanish doing the odd cash job, even the Notary, Mayors and police --- no-one wants a cheque do they.

Ok so the Spanish economy seems to work like that. Is it any different from the UK (or other countries)? Do you care. Should they get a way with it. Should we report them? Is anyone whiter than white ?

A local guy is hell bent on reporting the lot... ("I worked all my life, paid all my Taxes and dues... why should they get a way with it day-in, day-out"). I said he'd be doing a lot of reporting.

So where do you stand on this. Are you a tax dodger yourself??

Over to you - lets hear some true stories and opinions on this ?

Fred James

Yes, and I bet he will be the first to ask for a "cash" price when he needs some work doing!

Cape Blue

I found it more endemic than the UK - in the UK I would pay a builder or a plumber some cash for small jobs, say sub 2K, however in Spain I had a quote for a reformation at around 180,000 euro where the builder wanted 70% black - at that rate he would have been paying a lot of his staff and suppliers black as well. I also sold a property where the estate agents would only work on 100% black - either that or want 16% more than they initially quoted for legit.

If one removed the dinero negro economy from Spain it would probably jump up half a dozen spots in the world economic rankings and have to become a net contributor to the EU rather than net recipient.

rugbymatt

OK.

I have always stayed on the books, aside from a period where I had a bad injury recently I have always been in the system while living and working in the UK.

That said, I have done the odd cash job and not declared it, not a massive amount and only a couple of times, but I have done it.

I don't have a guilty conscience as I have always been very honest, but I have had the odd couple of hundred quid in cash and if there are no materials to account for then it has gone in my pocket.

All that said I do pay 18% on everything I earn so its kinda equalled out...........a bit.

finca steve

Well I heard an interesting thing the other day, from a Spanish lawyer as it happens.

He lives near Madrid and will never buy a Seat car preferring to get an import from Germany.

Why?

Well apparently Seat, who are in Barcelona and hence catalunians, does not pass on the ITV on vehicles sales to central government.

Also La Caixa which is a Catalan bank also cannot be used to pay road tax on my vehicle.

Are they related?

I don't condone tax evasion any more than anyone else, i.e. just as much as you can get away with, but it strikes me that major players in the Spanish system are some of the worst offenders.

Why doesn't central government do something about it?

Apparently they need the votes!!

Steve

Chiclanagir

In this relatively poor part of Spain, most of the Spanish drive around in very expensive Mercedes and 4x4s. All bought with black money.

lynnxa

my dh's accountant told him that his uncle was in a bit of a quandry

he is a 'farmer'

with the crack down on 'black money' he doesn't know whether to admit his real income, and face the consequences, or close down the 'farm' putting a lot of people out of work

billgates

What's a "dh"?

GrapeEater

Interesting Stuff so far... keep 'em coming. I like the SEAT / LA Caixa one. And 'tax' is always a political footbal in any country so the 'vote wanting' wouldn't surprise me.

I guess like most things the Gov go for easy targets when they 'clamp-down' on social / monetary issues. (The UK CSA child support comes to mind here). I guess catchuing loads of 'small fry' sounds better than we only caught 1 'gig fish'.

I guess on the whole Tax Dodging bugs me as the ideal in me says we'd all pay less if everyone adhered to the rules... but the 'greed' in humans always spoils the ideal. So law dodging ain't going away soon - particularly as the chances of being caught are slim and penalties ain't that discouraging.

A friend told me last night that a UK Guy around here (over 2 years now) is registered disabled poss' on UK Benefits, still drives a big car reg'd in UK still + sells pools for a Spanish Company for commission (tax-free & about €1000 a go). He goes home every so often to stay 'resident'. And we worked out maybe he'd sold a few pools... lives a life of luxury !!

Comments please ?

lynnxa

dear husband

dd dear daughter

ds dear son

oh other half

mil mother in law

you should be able to work some more out for yourself now

COWBOY_BUILDER

What is TAX ???

rugbymatt

Long live the cowboys!!!!!

GrapeEater

Every Cowboy knows what Tax is. It's the things you hit with a 'ammer to fix things to other things... aint it?

cowboy builders + tax = oil & water !!!!

ANd where you live? I can send the Apache to scalp you.

Big Pete

I reckon they should abolish tax on earnings

Now you will probably say yea well you would say that

But here me out here for a second , then you can post your usual crap about how much you love paying your tax ,and how lucky you are that whilst you toil away you are earning for the good of the others blah blah blah

Right you wake up in your house , if its purchased you would of paid STAMP DUTY ie. Tax number 1 . + VAT on legal fees rmovals etc etc .
For the privilage of living in it cost you Council TAX whilst you sleep
The bed you slept in would of had 17.5 % VAT on it .
The Kettle you boiled your water for youre first Cuppa , would of had VAT on it.
If you smoked your first Cigarette you have payed 50% TAX
You will then jump in your car , Purchase TAX paid and VAT paid
You then use Road Fuel 50% TAX
You go and do your weekly Shop and it has yes u guessed it 17.5 VAT Tax
On and on this goes with Tax Tax Tax ..

To cap it all if you have been frugil with your money and then die !! Yes along comes the Tax Man and says yippee this boring Sod has left loads we will let the relatives keep a bit then slap him with Death Duties Tax and then grab a lovely slice of his assetts as well

Now anyone who can beat this system with regards Cash in hand i say Good on them
Because being honest we are Taxed to a disgusting level in the Uk anyways


So now i will await the many remarks from the Whiter than white brigade

elfman

here ya go mate, wouldn't want to disappoint you:


TOTAL tax wedge: Single Worker:
15th Spain 37.9%
22nd UK 29.7%

http://www.nationmaster.com/graph/ta...-single-worker

TOTAL tax wedge: Single Income Family:
13th Spain 31%
23rd UK 17.8%

http://www.nationmaster.com/graph/ta...-income-family

Source: OECD