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Undeclared Economic Activity in Central and Eastern Europe : How Taxes Contribute and How Countries Respond to the Problem

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dc.contributor.authorLeibfritz, Willi
dc.date.accessioned2012-03-19T18:06:55Z
dc.date.available2012-03-19T18:06:55Z
dc.date.issued2011-12-01
dc.description.abstractThe paper examines the incentives and distortions created by tax policy and administration structures that motivate individuals to undeclare or under-declare work in the new EU member countries. It analyses the tax level and the tax structure "mix" of tax instruments, the special taxation regimes set up to attract workers and entrepreneurs back into the formal economy and how tax policies such as the introduction of a "flat tax" on income from labor and capital impacted workers and entrepreneurs in terms of formalizing work. It also attempts to gain some insight into the effectiveness of tax administration by comparing some input and output measures As non-tax factors can amplify the adverse effects of taxes on the labor market and reduce the effectiveness of tax reform, some of these other economic framework conditions are also discussed. This paper concludes by refining the main results and possible best practices for tackling undeclared work. The paper argues that the new EU member countries have had mixed success tackling undeclared work. While taxation matters, other underlying conditions for formal sector activity are also important. Addressing the problem of undeclared work therefore requires a broad policy approach with further improvements in tax policies, tax administration, and in general economic framework conditions for formal sector activity.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111223221541
dc.identifier.doi10.1596/1813-9450-5923
dc.identifier.urihttps://hdl.handle.net/10986/3691
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5923
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADVANCED COUNTRIES
dc.subjectADVERSE EFFECT
dc.subjectADVERSE EFFECTS
dc.subjectALLOCATION OF CAPITAL
dc.subjectARREARS
dc.subjectBARRIER
dc.subjectBUSINESS INVESTMENT
dc.subjectBUSINESS TAXES
dc.subjectCAPITAL FORMATION
dc.subjectCAPITAL GAINS
dc.subjectCAPITAL INTENSITY
dc.subjectCAPITAL TAX
dc.subjectCASH ECONOMY
dc.subjectCONSUMPTION TAX
dc.subjectCONSUMPTION TAXES
dc.subjectCORPORATE INCOME TAX
dc.subjectCORPORATE TAXATION
dc.subjectCURRENCY
dc.subjectDEBT
dc.subjectDEDUCTIONS
dc.subjectDISABILITY PENSION
dc.subjectDISPOSABLE INCOME
dc.subjectDIVIDEND
dc.subjectDIVIDEND TAXATION
dc.subjectDIVIDENDS
dc.subjectDOUBLE TAXATION
dc.subjectECONOMIC ANALYSIS
dc.subjectECONOMIC CRISIS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC REFORM
dc.subjectECONOMIC REFORMS
dc.subjectECONOMIC TRANSACTIONS
dc.subjectEMPLOYMENT TAX
dc.subjectEMPLOYMENT TAX CREDITS
dc.subjectENTRY BARRIERS
dc.subjectEXPENDITURES
dc.subjectEXPORT
dc.subjectFINANCIAL ASSETS
dc.subjectFISCAL DEFICITS
dc.subjectFIXED INVESTMENT
dc.subjectFLAT TAX
dc.subjectFLAT TAXES
dc.subjectFOREIGN FIRMS
dc.subjectFORMAL ECONOMIES
dc.subjectFORMAL ECONOMY
dc.subjectFRAUD
dc.subjectGOVERNMENT BUDGET
dc.subjectGOVERNMENT BUDGET DEFICIT
dc.subjectGOVERNMENT EXPENDITURE
dc.subjectGOVERNMENT FINANCE
dc.subjectGOVERNMENT REVENUES
dc.subjectGOVERNMENT SPENDING
dc.subjectHOUSEHOLD INCOME
dc.subjectHUMAN DEVELOPMENT
dc.subjectIMPLICIT TAX
dc.subjectINCOME GROUPS
dc.subjectINCOME LEVEL
dc.subjectINCOME LEVELS
dc.subjectINCOMES
dc.subjectINFORMAL ECONOMIES
dc.subjectINFORMAL ECONOMY
dc.subjectINSURANCE
dc.subjectINSURANCE PREMIUM
dc.subjectINSURANCE PREMIUMS
dc.subjectINTEREST INCOME
dc.subjectINTERNAL CONTROL
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BUSINESS
dc.subjectINVESTMENT DECISIONS
dc.subjectJOB CREATION
dc.subjectLABOR MARKET
dc.subjectLABOR MARKETS
dc.subjectLOSS OF REVENUE
dc.subjectMACROECONOMIC CONDITIONS
dc.subjectMARGINAL TAX RATES
dc.subjectMARKET COMPETITION
dc.subjectMARKET CONDITIONS
dc.subjectMARKET ECONOMY
dc.subjectMARKET ENTRY
dc.subjectMARKET REFORM
dc.subjectMARKET REGULATIONS
dc.subjectMONETARY FUND
dc.subjectOPTIMAL TAXATION
dc.subjectOUTPUT
dc.subjectPAYROLL TAX
dc.subjectPENSION
dc.subjectPENSION CONTRIBUTION
dc.subjectPENSION CONTRIBUTIONS
dc.subjectPENSION REFORM
dc.subjectPENSION SYSTEM
dc.subjectPERSONAL INCOME
dc.subjectPERSONAL INCOME TAX
dc.subjectPERSONAL INCOME TAXES
dc.subjectPOWER PARITIES
dc.subjectPRIVATIZATION
dc.subjectPROPERTY RIGHTS
dc.subjectPROPERTY TAX
dc.subjectPROVISIONS
dc.subjectPUBLIC
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC EXPENDITURE REVIEW
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC FINANCE STATISTICS
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC PROCUREMENT
dc.subjectPURCHASING POWER
dc.subjectREAL ESTATE
dc.subjectRED TAPE
dc.subjectREGULATORY FRAMEWORK
dc.subjectREPLACEMENT RATES
dc.subjectREPUTATION
dc.subjectSALES TAX
dc.subjectSALES TAXES
dc.subjectSAVINGS
dc.subjectSHARE PRICES
dc.subjectSHAREHOLDERS
dc.subjectSKILLED WORKER
dc.subjectSKILLED WORKERS
dc.subjectSMALL ENTERPRISES
dc.subjectSOCIAL PROTECTION
dc.subjectSTATUTORY TAX
dc.subjectSTATUTORY TAX RATE
dc.subjectSTRUCTURAL PROBLEMS
dc.subjectTAX
dc.subjectTAX ADMINISTRATION
dc.subjectTAX AVOIDANCE
dc.subjectTAX BASE
dc.subjectTAX BASES
dc.subjectTAX BURDENS
dc.subjectTAX CODE
dc.subjectTAX COLLECTION
dc.subjectTAX COLLECTORS
dc.subjectTAX COMPETITION
dc.subjectTAX COMPLIANCE
dc.subjectTAX CREDIT
dc.subjectTAX ENFORCEMENT
dc.subjectTAX EVASION
dc.subjectTAX EXEMPTION
dc.subjectTAX INCENTIVE
dc.subjectTAX INCIDENCE
dc.subjectTAX LIABILITY
dc.subjectTAX MEASURES
dc.subjectTAX POLICIES
dc.subjectTAX POLICY
dc.subjectTAX RATE
dc.subjectTAX RATES
dc.subjectTAX REDUCTION
dc.subjectTAX REDUCTIONS
dc.subjectTAX REFORM
dc.subjectTAX REFORMS
dc.subjectTAX REGIME
dc.subjectTAX REGIMES
dc.subjectTAX REVENUE
dc.subjectTAX REVENUES
dc.subjectTAX SHIFTING
dc.subjectTAX STRUCTURE
dc.subjectTAX SYSTEM
dc.subjectTAX SYSTEMS
dc.subjectTAX TREATMENT
dc.subjectTAX WEDGE
dc.subjectTAX WEDGES
dc.subjectTAXABLE INCOME
dc.subjectTAXATION
dc.subjectTAXES ON CONSUMPTION
dc.subjectTAXES ON LABOR INCOME
dc.subjectTAXPAYERS
dc.subjectTRANSITION COUNTRIES
dc.subjectTRANSPARENCY
dc.subjectWITHHOLDING TAX
dc.subjectWORLD DEVELOPMENT INDICATORS
dc.titleUndeclared Economic Activity in Central and Eastern Europe : How Taxes Contribute and How Countries Respond to the Problemen
dspace.entity.typePublication
okr.crossref.titleUndeclared Economic Activity in Central and Eastern Europe - How Taxes Contribute and How Countries Respond to the Problem
okr.date.disclosure2011-12-01
okr.date.doiregistration2025-04-10T11:05:00.909384Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111223221541
okr.guid884341468034745739
okr.identifier.doi10.1596/1813-9450-5923
okr.identifier.externaldocumentum000158349_20111223221541
okr.identifier.internaldocumentum15576845
okr.identifier.reportWPS5923
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/12/23/000158349_20111223221541/Rendered/PDF/WPS5923.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.administrativeEurope and Central Asia
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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