The shadow economy and its volumes should be regulated by the state

In modern economy there are several definitions of the concept of "shadow economy".

The shadow economy is the activity of economic entities, which contradicts the current legislation.

Also, the shadow economy can be represented by unaccounted state statistics and government-controlled production, exchange, consumption and distribution of material wealth. Such economic transactions make up 20% of the gross national product in developed countries, up to 50% in developing countries , and up to 30% in countries with transitional economies .

These definitions, when considered together, give a complete description of the term being analyzed.

The structure of the shadow economy can be represented by three sectors that have qualitative differences from each other.

The gray shadow economy (unofficial) is an allowed economic activity for the production of goods or the provision of services. Here it is a question of small turns of small business. Entrepreneurs of this sector of the economy shy away from official registration in order to exclude the additional costs that may be associated with obtaining various permits (licenses or patents).

Fictitious shadow economy looks in the form of falsifications, speculative deals, thefts, and bribery, ie. Various activities related to the receipt and transfer of funds.

The most "severe" and severely punishable is the black shadow economy (underground), which is prohibited by law economic activities related to the production and sale of banned or scarce goods. Such activities include: operations leading to violence (robbery, theft or extortion); Production of goods that have a destructive effect on the spiritual and physical condition of society (pornography, drug trafficking or human trafficking).

Increase in the volume of the shadow economy is promoted by such factors:

- economic, represented by high taxes, a crisis of the financial system and the activities of unregistered economic entities;

- social - low level of incomes of the population, contributing to the development of hidden activities, as well as high unemployment;

- legal, reflecting the imperfection of the current legislation, as well as the mechanism and strategy of organizing the work of law enforcement agencies to combat economic crimes, which have not been fully formed.

The last factor reflects the process of development of this type of economy. This is an institutionalization of the connection of the shadow economy with state structures. To improve the efficiency and effectiveness of the work of state bodies in the direction of countering the sharp growth of the shadow economy, there is clearly worked out and established coherence of work within the state structures of any country, their close interaction, implementation of joint programs and activities.

To overcome the economic factor, in addition to reducing taxes, it is necessary to simplify the procedure for obtaining permits. At the same time, it is necessary to take into account that it is possible to avoid large budget losses while reducing tax rates gradually and systematically, and not immediately for several taxes. At the same time, in no case can you relax the tax administration, allow for a reduction in fines and reduce criminal and administrative liability. Otherwise, there will be an expansion of the criminal sector, which will lead to an increase in the black shadow economy.