However, the fact that, even before the pandemic, Spanish public finances were characterised by a large structural 30  deficit indicates that, in normal cyclical circumstances, it is necessary to choose between, on one hand, maintaining existing spending programmes at the cost of an increase in the tax burden or, on the other, reducing spending to levels consistent with the level of revenues that the Spanish tax system is capable of raising in its current configuration under neutral cyclical circumstances. The pandemic has meant that this revenue sufficiency principle has become more demanding. To reduce the high level of debt stemming from the health crisis will require, having decided upon the level of spending, a level of taxes over the coming years that produces primary surpluses, i.e. a volume of revenue that exceeds spending. However, this sufficiency principle is not the only consideration when designing tax reforms. The latter should daw on two further principles. First, the configuration of the combination of taxes that make up the tax system must be growth friendly. And the second of these two further principles that should inform the design of the tax system is fairness. Putting this principle into practice, which will depend on what you should decide in your capacity as representatives of the popular will, is by no means a trivial matter. Combining these two principles yields prescriptions for the tax basket.
In March 2010, the Financial Action Task Force (or FATF) issued a report on Money Laundering Vulnerabilities of Free Trade Zones, indicating the rising threats of trade based money laundering. Apart from this report and the periodical typologies reports, the FATF has issued a number of reports relating to specific laundering methods; such as through securities, football and gaming sectors in 2009; vulnerabilities of internet payment system and commercial websites in 2008; and the real estate sector, VAT Carousel Fraud, and the misuse of corporate vehicles, such as trust and company service providers in the previous years. For Malaysia, consistent with the global trend, the financial system continues to be one of the preferred modes of channelling proceeds of crime. In recent years, it is observed that there is a combination of three common methods. The first is the increasing use of repository accounts whereby immediate withdrawals are made once deposits have been received. The other two methods consist of fast movement of money across borders and involvement of third parties in laundering activities. While this is not peculiar to Malaysia, financial institutions are advised to ensure strong controls in place to deter and detect these activities. An example of the modus operandi on the above involves the smuggling of dirty monies into Malaysia by the agents of a criminal ring. The agents will subsequently deposit cash into the accounts of various entities and individuals in the few bank branches operating at the border towns.