Goodbye Black Money: The Treasury’s Method of Tracking Your Movements

underground economy includes all those economic activity not declared and, therefore, they elude the administration and official statistics. According to GestaUnion of Technical Specialists of the Spanish Ministry of Finance. This type of economy is between 230,000 and 240,000 million euros. what does it mean almost 17% of gross domestic product (GDP).

Thanks to such large quantities, Tax agency try to install more qualified mechanisms control cash flows. This is what people call “black money” and this is the most common way to make payments while avoiding taxes.

Activities that the Treasury considers suspicious

To reduce the number of tax frauds, Banks are required to inform Tax authorities from any activity that seems suspicious. Among the activities considered questionable are The Bank of Spain portal indicates which activities fall into this category. Among the most common:

• Transactions with cash (whether deposits or withdrawals) exceeding €3,000.
• Document collections (bills, checks or letters), the value of which also exceeds 3,000 euros.

Self-employed, most controlled

However, despite the duty to inform, This does not mean that the Tax Agency will investigate all activities. In this sense, Those the Treasury is keeping a close eye on are the self-employed. especially in industries where cash payments They are more frequent. The tax agency establishes a tax and customs control plan and establishes the presence of a presence in these areas, as well as in those where “employment electronic payment methods located abroad avoid obligations to provide information.”

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