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Problem of the shadow economy in Slovenia
Mašera, Robert, 1969-
Shadow, also called underground, informal or parallel economy, is present in every social economic system in the world. It not only includes illegal activities but also unreported income from the ...production of legal goods and services, either from monetary or barter transactions. Hence, the shadow economy comprises all economic activities that would generally be taxable were they reported to the tax authorities. A precise definition of the shadow economy, however, does not exist, because the shadow economy develops all the time, adjusting to changes in taxation and regulations. In every country policymakers and government administrators need to attempt to regulate the size of shadow economy by estimating how often underground activities occur, as well as the size of these activities, so that they can make appropriate decisions on resource allocation. This, of course, might be quite difficult, due to the fact that people engaged in underground activities do their best to avoid detection. The size of shadow economy in Slovenia is quite worrying as it is amongst the highest in the EU. The latest calculations by the British tax analyst Richard Murphy show that less than 2,6 billion taxes in Slovenia (from the total of 825 billion ) are not being collected. The encouraging news is that the amount of not collected taxes is deacreasing.
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