Over 51 percent of taxable economic activity in Italy is undeclared, according to the Association of Italian Taxpayers.
Internet shopping companies in Italy consist of a large portion of the tax evasion. Out of the over 2 million internet firms registered in Italy, only 800,000 firms pay taxes.
The losses in Italy to Internet tax evasion is estimated to be $4.2 Billion (3 Billion Euros) a year.
Source: “Bulgaria Ranks 3rd in EU in Tax Evasion – Italian Poll,” Sophia News Agency, August 1, 2011.