The value of losses caused due to tax avoidance and evasion in the European Union amounts to €170bn per year, a Polish state think-tank said.
The report from the Polish Economic Institute estimated the total tax avoidance losses over a 7-year period to be €1.19trn. According to PIE data, the largest EU "tax havens" include the Netherlands and Ireland, and Germany and the United Kingdom lose most on tax avoidance and evasion.
"Losses resulting from the use of international transactions for tax fraud and tax avoidance reduce EU Member States' revenues by around €170bn annually," Piotr Arak, the director of the Polish Economic Institute, said in a statement.
"The Union should take integrated measures to seal the tax system in order to have an additional source of financing for the new budget, to be constructed without the United Kingdom, a major payer," the institute said.
Out of €170bn the EU loses every year €60bn comes from artificial profit-shifting by multinational companies - moving earnings from a higher tax jurisdiction to a country with a lower tax rate - €46bn due to moving wealth by rich individuals, and €64bn due to cross-border VAT fraud, the institute said, Reuters reported.