The estimate is based on data by the EU, the International Monetary Fund (IMF) and other 2015 academic studies.

Unlike other studies that focus on tax evasion by multinationals, Murphy's study focussed on tax that is not paid in the national economies.

The share of the tax lost compared to the expected tax revenue is the lowest in Luxembourg (almost 8%), and the highest in Romania (almost 30%). In relative terms, Romania has the most tax evasion (EUR 16.2bn) but in absolute terms, Italy tops the list with EUR 191bn.

In half of EU member states the tax loss is bigger than health spending. In Slovenia, it is bigger by almost 10%.

Only 15 EU countries conduct studies into tax losses and only seven, including Slovenia, into income tax losses.

Murphy also warns in the study of tax incentives that are often awarded without economic ground, which increases inequality in the EU countries.