The Role Of Tax Compliance and Enforcement in Reducing The Informal Economy
Keywords:
Tax compliance, Tax enforcement, Informal economy, Tax audits, Government revenueAbstract
This study analyzes the effectiveness of tax compliance and enforcement measures in reducing the size of the informal economy. By examining case studies from various countries, the research identifies key factors that drive informal business activity and evaluates how tax compliance programs, audits, and penalties impact informal sector reduction. The findings reveal that robust tax enforcement, combined with incentives for compliance, can significantly decrease informal economic activity and increase government revenue.
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References
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