Black Market in Spain: Cash Transactions Exceeding 2,500 Euros Now Banned

Things are going so "well" in Spain that the Government banned cash payments in excess of 2,500 euros

Via Google Translate from Libre Mercado ...

The Prime Minister, Mariano Rajoy, has announced on Wednesday that the plan to combat tax evasion on Friday approved the Cabinet prohibit the payment in cash transactions of over € 2,500 and n which at least involved a businessman professional.

During the control session the Government in the House of the Congress of Deputies and in response to a question about the tax amnesty made by the general coordinator of IU, Cayo Lara, the Prime Minister has revealed that those who violate the ban will face fines of 25% of the payment made ​​in cash.

Black Money

This measure aims to prevent the use of black money in commercial transactions and, in the case of companies, give them an obstacle to not resort to false invoices. The plan to combat fraud adopted on Friday, the Cabinet intends to raise up to 8.171 million euros in 2012.

I calmly predict that black market transactions in Spain will soar as soon as Spain is stupid enough to hike the VAT.

Sadly, such stupidity is just around the corner as noted in Slow Road to Hell: Spain Entertains VAT Hike

Real Anti-Fraud Plan

Once again I am stumbling for a precise translation but I happen to agree with this sentiment (emphasis mine) as translated by Google from the lead article.

The general coordinator of IU Rajoy called on a real anti-fraud plan, with more resources to the tax office, and has taken the opportunity to ask the president that when you announce cuts of 10,000 million euros "do it in Parliament.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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