Purpose – The main purpose of this paper is to explore size of the shadow economy of 31 European Countries in 2014 and size of the shadow economy of 28 European Union countries over 2003-2014 (in per cent of official GDP). An additional objective is to identify tax evasion, as the problem of all the EU countries, answering the questions how better combat the tax fraud. Design/methodology/approach – Estimates of the shadow economy for all 28 European Union countries and other three countries from Europe, i.e. Norway, Switzerland and Turkey – MIMIC method was applied. Findings – The average size of the shadow economy in 28 EU countries was 22.6 per cent in 2003 and decreased to 18.6 per cent (of official GDP) in 2014. We also consider the most important driving forces of the shadow economy. The biggest ones are with 14.6 per cent unemployment and self-employment, followed by tax morale with 14.5 per cent and GDP growth with 14.3 per cent. The proportion of tax evasion (accounting for indirect taxation and self-employment activities) was on average 4.2 per cent (of official GDP) in Poland, 1.9 per cent in Germany and 2.9 per cent in the Czech Republic. Research limitations/implications – The MIMIC statistics do not address a large part of the wholly illegal economy (of typically criminal nature) and, accordingly, it is not an absolute magnitude of the whole unofficial economy. However, it does not seem that other, alternative, methods of measuring the unofficial economy are better in individual terms. Practical implications – Current statistical research should lead to practical acceptance in the framework of need for developing better organizational & legal ways for multi-level governance within the European Union, leading to effective methods of counteracting – in particular intra-Union fraud. In addition, the presentation of a review of typology of the main theories and studies regarding the unofficial economy aspects relating to tax evasion constitutes a practical review of the pursued research areas. Social implications – Safeguarding the national economy as a whole, by seeking ways of reducing the scope of shadow economy. Originality/value – Both regarding presentation of the latest shadow economy estimates and typology of its main studies and theories.
RESUMO: Dentre as diversas mudanças que vêm ocorrendo no mundo do trabalho desde a década de 1970, a disseminação do trabalho informal tem sido central no processo de precarização e de flexibilização dos direitos trabalhistas. No atual estágio do capitalismo, acredita-se que são diversas as tentativas de transferir, do mercado e do Estado para o indivíduo, as responsabilidades/riscos de sua inserção produtiva no mercado de trabalho. Assim, a partir de uma abordagem qualitativa, pautada nas teorias críticas da sociologia do trabalho e do direito (do trabalho), e nas informações sobre o mercado de trabalho no Brasil, o presente artigo pretende analisar as inter-relações estabelecidas entre o trabalho informal e o empreendedorismo, e também a compreensão de seu desenvolvimento e alcance em um contexto de políticas sociais focalizadas. Palavras-chave: Precarização. Trabalho informal. Empreendedorismo. Flexibilização. ABSTRACT: Among the many changes taking place in the labor market since the 1970s, the spread of informal work has been central in the process of casualization and flexibility of labor rights. In the current stage of capitalism, it is believed that there are various attempts to transfer, the market and the state to the individual responsibilities / risks of their productive integration into the labor market. Thus, from a qualitative approach, based on the critical theories of sociology of work and (labor) law, and the information on the labor market in Brazil, this article aims to analyze the interrelations between informal work and entrepreneurship, and also the understanding of its development and scope in the context of targeted social policies.
Purpose The purpose of this paper is to present an up-to-date estimation of the tax gaps (TGs) of 35 countries (28 EU member states and 7 additional countries – Australia, Canada, Japan, New Zealand, Turkey, Switzerland and the USA, both as a percentage of the gross domestic product (GDP) and a nominal value (in US$). Design/methodology/approach The authors’ empirical study was carried out on 35 selected countries. To estimate the TG, indirect methodology has been applied, where the basic components used in the estimation procedure are the level of the shadow economy estimated with the multiple indicators multiple causes method, the GDP at current prices (in US$), the total tax rate (TTR) of a given country and the indirect method of follow-up and estimation of lacking data. Findings The basic finding of the research is that the level of the TG is determined individually for a given country and is strongly correlated with the GDP, i.e. if the GDP is high, the TG as the percentage of the GDP is lower in the majority of countries. It is particularly easily noticeable in countries such as the USA (TG – 3.8 per cent of the GDP), the Great Britain (TG – 3.2 per cent of the GDP) or Japan (TG – 4.3 per cent of the GDP). Research limitations/implications A limitation of the adopted research method is the lack of application of direct (supplementary) methods which would include potentially lost contributions from foreign sources and not registered taxpayers. Another research constraint is that the authors’ estimations do not take into account the so-called direct top-down approach based on the VAT Theoretical Total Liability. The weakness of the adopted procedure of estimation is also the use of TTR only instead of comparative approach including tax burdens and average tax rate. Practical implications TG has recently become a hotly debated issue and poses a big challenge to the public finance in many countries. The paper provides some recommendations for the policymakers how to reduce the size of the TG. Social implications Tax evasion and tax avoidance leading to the emergence and expansion of the TG erode the business ethics and distort the rules of fair competition, thus undermining the social trust and moral infrastructure of business transactions. Originality/value One of the major research findings is that 30 per cent of the TG in a given country is determined by the TTR, which – for the first time – provides empirical proof that tax policy (as part of overall economic policy) plays an important role and that it may determine the fiscal effectiveness of a given country.
Purpose-The purpose of this paper is to investigate the underlying causes, scale and scope as well as the effects of piracy as a form of the shadow economy throughout Poland, drawing on the findings of secondary studies and author's questionnaire survey conducted in summer 2013. Design/methodology/approach-An online questionnaire survey was accomplished using the computer-assisted Web interview method and real-time sampling technique, in June 2013. The survey involved 1,000 persons aged 15 years and older. Findings-Polish consumers use pirated content, products and services primarily for financial reasons: 73 per cent of respondents point out to high prices of original products, while more than half (56 per cent) points at low incomes of Polish consumers. A significant percentage of respondents (over one-third) indicates the easiness of access to pirated goods and services. The most common activity among Polish internet users is to copy pirated music files (almost 40 per cent of internet users admit to that) and films (including watching the series in the network to which approximately 35 per cent of respondents confess to). These two kinds of files are also copied the most often-about 20 per cent of the respondents copy them once a month or more often. One-fourth of the respondents admit to copying pirated computer programs. The findings from the survey reveal that young Polish internet users demonstrate a rather permissive attitude towards online piracy that involves downloading music files or video and sharing them with other network users. Research limitations/implications-The questionnaire survey did not cover all aspects of online purchasing behaviour of Polish internet users. The findings of the survey should be approached with some caution, given the intricate and sensitive nature of the research problématique. Practical implications-Regulations regarding online purchases of goods and services are not attuned to the digital reality, which is exploited by online intermediaries. The research findings highlighted the motivational and behavioural aspects of Poles' online consumer behaviour, thus providing useful tips to curb online piracy. Social implications-The implementation of relevant regulations to ensure respect and protection for intellectual property rights on the internet in Polish as well as EU legislation has acquired a rare immediacy and may reduce the scope of online piracy and other manifestations of shadow economy in the cyberspace. Originality/value-An empirical insight into the online piracy among Polish internet users providing first-hand knowledge regarding their motivation and behavioural patterns.
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