Revenue Administration: Managing the Shadow Economy

Author/Editor:

Barrie Russell

Publication Date:

July 29, 2010

Electronic Access:

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Disclaimer: This Technical Guidance Note should not be reported as representing the views of the IMF. The views expressed in this Note are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

This technical note focuses on the concept of a shadow economy and explains its main characteristics. Although a shadow economy is acknowledged by all G-20 countries as a major and enduring revenue risk, by its nature the size of a shadow economy is difficult to measure. Sweden, however, estimates that at least half of its total tax gap is attributable to a shadow economy. This note explains what action should revenue agencies take to manage a shadow economy. The most recent initiatives to manage a shadow economy are also described.

Series:

Technical Notes and Manuals No. 2010/014

Subject:

English

Publication Date:

July 29, 2010

ISBN/ISSN:

9781462355587/2075-8669

Stock No:

TNMEA2010014

Pages:

16

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