In today's economy, there are several definitions of "shadow economy".
Shadow economy - it is an activity of economic entities, which is contrary to current legislation.
also the shadow economy can be represented by the state statistics unaccounted for and controlled by public authorities the production, exchange, distribution and consumption of material goods.Such business operations in developed countries up to 20% of gross domestic product in developing countries - up to 50%, and in countries with economies in transition - to 30%.
These definitions when considered together give a complete characterization of the analyzed term.
structure of the shadow economy can be represented by three sectors, which are qualitatively different from each other.
gray shadow economy (informal) is permitted by law, the economic activity of producing goods or services.There is a question of a small speed small businesses.The entrepreneurs of this sector evade official registration in order to avoid the additional costs that may be associated with obtaining various permits (licenses and patents).
dummy shadow economy looks as postscripts, speculative transactions, embezzlement and bribery, ievarious kinds of activities related to the receipt-transfer of funds.
most "severe" and strictly punishable is a black shadow economy (underground), which is prohibited by law in economic activities related to the production and sale of banned or scarce goods.Such activities are ranked as: operations, leading to violence (robbery, theft or extortion);production of goods having a devastating effect on the mental and physical state of society (pornography, drug trafficking and human trafficking).
increase in the volume of shadow economy contributing factors:
- economic, represented by high taxes, the crisis of the financial system and the activities of non-registered economic entities;
- social - low income, contributing to the development of hidden activities, as well as high levels of unemployment;
- legal, showing the imperfection of the current legislation, and are not formed in full gear and strategy organization of the law enforcement agencies in the fight against economic crime.
last factor reflects the development of this type of economy.It is the institutionalization of the shadow economy due to government agencies.To improve the efficiency and effectiveness of government agencies in the direction counter a sharp rise in the shadow economy is a well-established and well-established consistency in the work of state structures of any country, their close interaction, the implementation of joint programs and activities.
To overcome the economic factor is necessary, in addition to lower taxes, simplify the procedure for obtaining permits.It should be borne in mind that to avoid big budget losses at lower tax rates only in conducting these activities gradually and systematically, rather than on several taxes.At the same time, in no case be laxative tax administration, avoid penalties and reduce the reduction in criminal and administrative responsibility.Otherwise it will be allowed the expansion of the volume of criminal sector that will lead to an increase in the black shadow economy.