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Taxes in our life

Chapters 1 › Unit 1: Exercise View instructions Hide instructions

Exercise

What is the difference between ‘shadow economy’ and ‘grey economy’?

TAXES IN OUR LIFE

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Shadow economy basically entails the following aspects,

  • Tax evasion
  • undeclared wok : this is a situation where employees receive all their salary in an envelope. It also entails paying part of the salary officially while the rest is given to the employee in cash (i.e unofficially)
  • Corruption and money laundering

Grey economy on the other is an economy where there exist two types of income with one part representing Salary and the other part in cash and represents an untaxable income.

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