• Germany edition
 
French more honest taxpayers than Germans
Photo: DPA

French more honest taxpayers than Germans

Published: 08 Feb 2013 14:07 GMT+01:00
Updated: 08 Feb 2013 14:07 GMT+01:00

According to the annual survey by German economic institute IAW, the black market in France represented 9.9 percent of the country's GDP.

That compares favourably to Germany, where undeclared economic activity totaled 13.2 percent of GDP, and Sweden, where 13.9 percent of the country's GDP is accounted for by the shadow economy.

Does this mean the French are more virtuous than their European counterparts?

Not according Friedrich Schneider, co-author of the study, published this week.

Schneider attributed the French performance to a particularly efficient tax system, with stricter controls against cheating the system.

“Taxpayers here are given incentives to not resort to black-market work,” the economics professor told the website Challenges.fr.

Reduced VAT rates for the hospitality and construction industries also accounted for the fact the French were less likely to resort to the black market than the Germans, according to Schneider.

The study found that of the 21 countries surveyed, the champions of the black market were the Greeks, where the shadow economy represented 24.6 percent of GDP. They were closely followed by the Italians (21.1 percent), the Portuguese (19 percent) and the Spanish (18.6 percent).

At the other end of the chart were France's near-neighbours Switzerland, where the equivalent of 7 percent of their GDP was concealed from the tax man.

For the 12th year in a row, however, the world’s most honest taxpayers, at just 6.6 percent, were the Americans.

Economic earnings through criminal activity were not taken into account by the study.

The Local (news@thelocal.de)

Don't miss...X
Left Right

Your comments about this article

16:59 February 8, 2013 by Zubair Khan
Is not it morally shameful? Can we conclude one of the reasons Germans always failed to rule either part or the whole world?
17:19 February 8, 2013 by Englishted
Bet the French have less doctorates than the Germans can't think why?
17:40 February 8, 2013 by Berlin fuer alles
This whole Eurozone mess is caused by dishonest Germany. Namely, Dr. Merkyl and Mr. Hyde along with her Bankster buddies.
20:06 February 8, 2013 by jg.
"...Switzerland, where the equivalent of 7 percent of their GDP was concealed from the tax man."

That might be true of the percentage of their GDP that is hidden from the Swiss tax authorities but it seems likely that a substantial proportion of the Swiss GDP is earned from hiding wealth and earnings from the tax authorities of countries around the world.
10:08 February 9, 2013 by Sastry.M
May be the Germans are more taxed wage earners in support of Govt. commitments such as bailouts and guilt reparations.
10:12 February 9, 2013 by Berlin fuer alles
@ Sastry

The bailout taxes are levied against the citizens of those bailout countries.

Regarding the 'guilt reparations' as you call it. I presume you are referring to WWII holocaust and damage reparations which are fully justified.
10:59 February 11, 2013 by Sastry.M
@Berlin fuer alles,

Thanks for the correction. By 'taxed wage earners' I meant German tax payers from whose contributions, may be partly, the bail out funds are pooled up to be advanced to those in need.

Also the justified reparations to the aggrieved victims of ww2 holocaust is indicative of remorse and penitence of human nobility according to the dictum

"Virtus sola Nobilitat" or virtue alone ennobles.
Today's headlines
Have Your Say
Should Germany legalize cannabis?
Photo: DPA

Should Germany legalize cannabis?

A New York Times editorial on Sunday called for the US to drop its ban on marijuana, calling the strongly-worded law a "laughing stock". Should Germany follow the US states of Colorado and Washington and legalize recreational use of the drug? READ  

Cows kill German dog walker in Austria
File Photo: DPA

Cows kill German dog walker in Austria

A 45-year-old German woman died when she was attacked by a herd of 20 cows and calves on Monday afternoon on an Alpine pasture in Tyrol's Stubaital valley. READ  

Knut goes on display in Berlin museum
Knut's new home in Berlin's Natural History Museum. Photo: DPA

Knut goes on display in Berlin museum

Germany’s favourite polar bear Knut is set to pull in the crowds again - but this time from a display case. More than three years after his death, his real fur has been used to create a new Knut for a museum exhibition. READ  

And the winner of the EU single market is...
German incomes are higher thanks to the EU. Photo: DPA

And the winner of the EU single market is...

Germany and Denmark came out as the winners of the European Union's single market in a study released on Monday. Integrating economically with its neighbours has helped the German economy grow an average of €37 billion a year since 1992. READ  

Synagogue attacked, rabbi gets death threats
Police check the outside of a synagogue in Wuppertal for evidence of arson on Tuesday. Photo: DPA

Synagogue attacked, rabbi gets death threats

A wave of anti-Semitism in Germany, unleashed by the Gaza crisis, shows no sign of abating. A synagogue was attacked on Tuesday morning, a rabbi received death threats and anti-Jewish comments online have increased. Attacks on mosques have also risen. READ  

UBS pays Germany €300m in tax fight
Photo: DPA

UBS pays Germany €300m in tax fight

Top Swiss bank UBS settled a long-running legal dispute with Germany on Tuesday by agreeing to pay a fine of €300 million. Germany suspects UBS of having helped account holders hide millions from the taxman. READ  

Two die as heavy rain and floods hits west
Münster was one of the areas worst hit by Monday night's heavy rain. Photo: DPA

Two die as heavy rain and floods hits west

UPDATE: A man drowned in his cellar on Monday night as heavy rain battered parts of north-western Germany. A second man died when he tried to drive through a flooded street. The emergency services were in places overwhelmed by hundreds of calls. There are further weather warnings in place for Tuesday. READ  

EU to hit Russia with tough sanctions
Merkel has finally lost patience with Putin. Photo: DPA

EU to hit Russia with tough sanctions

The EU is set to agree a raft of new wide-ranging sanctions against Russia on Tuesday, after Germany changed its stance on upping the economic pressure on Russian President Vladimir Putin over the Ukraine crisis. READ  

'Mad professor' to swim length of Rhine
Professor Andreas Fath, 49, in training along the Rhine in Baden-Württemberg in June. Photo: DPA

'Mad professor' to swim length of Rhine

German chemistry professor Andreas Fath started on Monday a gruelling four-week solo swim down the Rhine river for the benefit of science and the environment. READ  

Unfair advantage for one-legged long jumper?
Markus Rehm became German champion on Saturday. Photo: DPA

Unfair advantage for one-legged long jumper?

Paralympics gold medallist Markus Rehm triumphed over his non-disabled rivals on Saturday, winning the German long jump championship. But athletics officials are now reviewing whether his prosthetic leg gave him an unfair advantage. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Education
Germany's students fail to graduate in time
Photo: DPA
Gallery
Hamburg harbour lit up in blue
Business & Money
JobTalk: 'Application process is failing'
Photo: Bundesarchiv/Bild 183-S45825
Culture
Germany puts 700,000 WWI docs online
Photo: DPA
Society
This man wants to give all of us €12,000 a year
Photo: DPA
Education
Top university switches master's courses to English
instagram.com/gotzemario
Gallery
Germany's World Cup stars share their holiday photos
Travel
Plans unveiled for bike trail along former Iron Curtain
Photo: DPA
Gallery
The Local List: 12 best words in German
Photo: DPA
Gallery
German Bucket List: How many of these can you tick off?
Photo: Europeana.de 1914 - 1918
Gallery
A German soldier's life behind WWI lines
Education
Raising the bar for law & business in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
Photo: DPA
Features
The Local List Archive - Your guide to all things German
National
Share news tips with The Local Germany
Sponsored Article
Bilingual school turning education on its head
Sponsored Article
CurrencyFair: Why it pays when making overseas transfers
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,227
jobs available
Toytown Germany
Germany's English-speaking crowd