How to denounce the underground economy

The underground economy is one of the great economic problems that many countries have, including Spain, where it is estimated that more than 20% of economic transactions are of this type. No doubt its effects are noticed not only in the Treasury, but in the whole country. That is why it is very important to denounce this situation, if we are aware of what is happening. In this article of .com we will explain how to denounce the underground economy.

Source photography: capitalibre.com

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The submerged economy encompasses all those activities that are not subject to tax control and are not being regulated by government power, so that the tax administration does not really know what happens to them. It may be due to legal activities but they are not regulated, thus trying not to pay taxes, for example having workers without a contract. Or directly by illegal activities, such as drug trafficking.

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In Spain, the Ministry of Employment and Social Security has launched an anonymous mailbox, in which all those people who have the certainty that an irregular activity is being carried out, which also tries to evade taxes and defraud the Treasury, may denounce the economy submerged anonymously.

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Once the Ministry has received the anonymous report, it is launched to investigate this activity, always taking into account the anonymity of the person who made it. It is therefore important to be able to report as many details as possible, so that the procedure is carried out correctly.

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In the event that we want to take part in the complaint, and that we are not anonymous and passive regarding it, we can file a formal complaint with the Labor and Social Security Inspectorate.

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For this we can use the complaint model provided by the Ministry, facilitating its preparation. It is important to take into account the following data when preparing it:

• We will have to identify ourselves as complainants, so it is not anonymous, and sign it as such.
• Fact that we denounce, as well as the temporary period in which it occurs.
• Responsible for said fact.
• Any other relevant information.