Europe evidently has the highest tax rates in the world, and therefore also has the largest black market. The European averaged tax rate is of 39%, when equated to GDP, compared to the world average of 28%, and lowest of 17% in Africa. The world’s ten largest economies have lost out on $100 billion each on collection due to evasion towards havens, such as the Cayman Islands or Luxembourg. This issue is very common in southern Europe, especially Italy and Greece, where high tax rates are pooled with somewhat ineffective law enforcement and modest public services. More than 25% of tax income in both countries is lost due to weighty shadow economy that is socially normalized. Self-employment and small businesses are more predominant than in other European countries, activities often out of fiscal authorities’ reach. Given that most of them are indeed avoiding some taxes; it is deemed socially acceptable to do so by each and all.
Julien David Mousseau
*FDI net inflows are the value of inward direct investment made by non-resident investors in the reporting economy
https://skyzo.net/evasion-fiscale/
https://tradingeconomics.com/luxembourg/foreign-direct-investment-net-inflows-percent-of-gdp-wb-data.html