Black cash tax evasion in Russia: Its forms, incentives and consequences at firm level
AbstractThis paper discusses Russia’s "black cash" economy. Using interviews and survey data, we examine the mechanics of several distinctly Russian tax evasion schemes and attempt a rough estimate of the scale and dynamics involved in tax evasion based on black cash. Entrepreneurs’ opinions are also used to get an idea of the incentives and costs of black cash tax evasion. We next describe the apparent economic consequences of black cash tax evasion and formulate general formal conditions for successful evasion at firm level. Finally, we recommend several policy measures to reduce the incentives to such behaviour and discuss questions for future research.
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Bibliographic InfoPaper provided by Bank of Finland, Institute for Economies in Transition in its series BOFIT Discussion Papers with number 3/1999.
Length: 44 pages
Date of creation: 14 Sep 1999
Date of revision:
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Postal: Bank of Finland, BOFIT, P.O. Box 160, FI-00101 Helsinki, Finland
Phone: + 358 10 831 2268
Fax: + 358 10 831 2294
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More information through EDIRC
tax evasion; informal business activity; black cash; Russia;
This paper has been announced in the following NEP Reports:
- NEP-ACC-2007-09-24 (Accounting & Auditing)
- NEP-ALL-2007-09-24 (All new papers)
- NEP-CIS-2007-09-24 (Confederation of Independent States)
- NEP-PBE-2007-09-24 (Public Economics)
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