These are the self-employed that the Tax Agency is monitoring

The self-employed group offers a perfect ecosystem for the proliferation of the underground economy. Small businesses in which there are continuous small payments. For this reason, it is very difficult to detect when a case of fraud occurs.

However, the Government is determined to put an end to these infractions. The fight against fraud is the workhorse of this executive, so self-employed workers are especially watched within the Spanish business fabric.

Which freelancers are persecuted by the Tax Agency?

Obviously, the Tax Agency controls absolutely the entire group of self-employed. However, there is a group of these professionals in which the magnifying glass is especially focused.

These are the so-called ‘moduleros’, those workers who settle their taxes through the objective estimation system, or module system, hence the name they receive.

But why do they monitor these freelancers? These professionals, unlike the rest, they do not have to keep strict records of their income, since they declare them based on a rough estimate.

In addition, these workers often run small businesses such as greengrocers, butchers, bars or restaurants, for example. Activities where many small cash payments are made, so the self-employed have greater chance of underreporting all your incomecommitting fraud.

This is the real reason why the Tax Agency goes after these freelancers, the cash. The Administration is fully aware of the average level of income in a sector. In other words, the Treasury inspectors investigate the billing capacity that a specific business may have, in a specific neighborhood.

What does this mean? If the rest of the hairdressers in the area declare an average level of income close to 10,000 euros per month, it is very unlikely that this self-employed person in particular will declare 5,000 euros.

In this situation, it is relatively easy for an inspector approaches the business to ask the reasons to corroborate that it is not a fraud.