Italian tax dodging reaches ‘indecent level’

Romano Prodi, the Italian prime minister has launched a tax evasion crackdown after he claimed the problem had reached an ‘indecent level’.

Italy is well known for its tax evasion problems. In 2004, £182bn of tax was dodged, while figures from the treasury show that one fifth of Italy's GDP is lost to unpaid taxes.

As a result honest taxpayers are submitting, on average, more than half their salaries in tax to keep the country running.

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