That's pretty bad. I guess if their version of the ATO isn't going to enforce the law then you can expect that to happen. I'm guessing a fair bit of it is going unchecked due to corruption as well. (or that me watching too many movies!)
Korea is as bad as Italy because it has a system based on declaration by the taxpayers. They also have agents selling receipts etc for tax declaration and I recently (3 years ago) found that this practice for small company owners are rampant in mainland China. So sometimes wonder, whether the growth figures produced world agencies are real !!!