Revenue Administration: Managing the Shadow Economy
Technical Notes and Manuals, July 29, 2010
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- Revenue Administration: Managing the Shadow Economy
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Bibliographic details
- Authors: Barrie Russell
- Published: July 29, 2010
- Series: Technical Notes and Manuals
- DOI: https://doi.org/10.5089/9781462355587.005
Overview and purpose
- Focuses on the concept of a shadow economy and explains its main characteristics.
- Emphasizes that a shadow economy is acknowledged by all G-20 countries as a major and enduring revenue risk.
- Notes the inherent difficulty of measuring the size of a shadow economy.
- States that Sweden estimates that at least half of its total tax gap is attributable to a shadow economy.
- Explains what actions revenue agencies should take to manage a shadow economy.
- Describes the most recent initiatives to manage a shadow economy.
Key findings
- Shadow economy is a major and enduring revenue risk recognized across G-20 countries.
- Measurement challenge: by its nature the size of a shadow economy is difficult to measure.
- Country-specific estimate: Sweden estimates that at least half of its total tax gap is attributable to a shadow economy.
Policy guidance and recommended actions for revenue agencies
- Outlines the actions revenue agencies should take to manage a shadow economy (specific actions described in the note).
- Describes recent initiatives to manage a shadow economy (specific initiatives described in the note).