Economic crime report 2004 - Ekobrottsmyndigheten

for its view that the directives should be adapted so as to facilitate tax
supervision as well.
In 2002-03, both trade associations and unions in cash sectors actively
urged the Government to speed up its consideration of a compulsory cash
register system. SKV has been consulted as part of that effort. Among the
sectors with which meetings and discussions about revenue recognition
problems have taken place with union and management representatives
are hairdressers, transport companies (particularly taxis and movers) and
restaurants. Such exchanges are scheduled to continue through 2004.
2.5.3 Traditional Tax Evasion
The Scope of Tax Evasion
Of vital importance when it comes to tax evasion is not only monetary
value, but the number of people involved, as well as its causes and consequences.
Many studies, both in Sweden and abroad, have examined the
supply of undeclared labour. A 1998 inquiry by the Swedish National
Audit Office (RRV) concluded that men are twice as likely as women
to do undeclared work, and that self-employed people and students are
the most common labourers in this market. A survey by SKV indicated
that people with high incomes were the most likely to engage undeclared
labour. Both studies found that undeclared work stems mostly from
financial motives.
In connection with an assignment by the Government to evaluate its tax
supervision activities, SKV estimated in 1998 the volume of its uncollected
revenues for the previous year. SKV warned that the statistics for
making such an assessment were unreliable and not up-to-date. But such
an estimate might still prove useful. An assessment could stimulate a fruitful
dialogue, as well as ongoing methodological discussions and analyses
of the magnitude, scope and causes of uncollected revenues. That could
lay the groundwork for a strategy aimed at minimizing their volume.
SKV estimated uncollected 1997 revenues at SEK 80-90 billion, almost
5% of the GDP or 9% of taxes collected.
It does not follow that such revenue can be extracted by means of additional
audits. If the unreported income were to be taxed, many of the services
would not be produced in the first place. SKV also argued that if the
tax authorities were given the resources to identify all cost and accounting
errors, intentional evasion would be negligible but that society’s resources
would not have been used in a cost-effective manner. The conclusion is
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