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Black cash tax evasion in Russia: Its forms, incentives and consequences at firm level

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  • Yakovlev, Andrei

Abstract

This 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.

Suggested Citation

  • Yakovlev, Andrei, 1999. "Black cash tax evasion in Russia: Its forms, incentives and consequences at firm level," BOFIT Discussion Papers 3/1999, Bank of Finland Institute for Emerging Economies (BOFIT).
  • Handle: RePEc:zbw:bofitp:bdp1999_003
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    References listed on IDEAS

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    1. Vito Tanzi & Parthasarathi Shome, 1993. "A Primer on Tax Evasion," IMF Staff Papers, Palgrave Macmillan, vol. 40(4), pages 807-828, December.
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    6. S. Malakhov, 1997. "Transaction Costs in the Russian Economy," Voprosy Ekonomiki, NP Voprosy Ekonomiki, vol. 7.
    7. Clifford Gaddy & Barry W. Ickes, 1998. "To Restructure or Not to Restructure: Informal Activities and Enterprise Behavior in Transition," William Davidson Institute Working Papers Series 134, William Davidson Institute at the University of Michigan.
    8. L. Kosals, 1998. "Shadow Economy as a Specific Feature of Russian Capitalism," Voprosy Ekonomiki, NP Voprosy Ekonomiki, vol. 10.
    9. Yakovlev, Andrei, 1999. "Black cash tax evasion in Russia : Its forms, incetives and consequences at firm level," BOFIT Discussion Papers 3/1999, Bank of Finland, Institute for Economies in Transition.
    10. Mr. Vito Tanzi & Mr. Parthasarathi Shome, 1993. "A Primer on Tax Evasion," IMF Working Papers 1993/021, International Monetary Fund.
    11. Kaufmann, Daniel & Kaliberda, Aleksander, 1996. "Integrating the unofficial economy into the dynamics of post-socialist economies : a framework of analysis and evidence," Policy Research Working Paper Series 1691, The World Bank.
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