Shadow economy is a complex worldwide phenomenon that is confronted by all world economies. The scale or intensity of the phenomenon differ from country to country. Although this cannot be accurately measured, it can be estimated that the phenomenon has enormous dimensions.
Based on domestic and foreign data, research, and legislation, the master’s thesis presents a comparison of shadow economy in size, and the measures to tackle this phenomenon in Slovenia, Croatia, Austria, Finland, and Sweden in a certain time period over the last five years. By analysing this problem area based on the identification of the measures’ effectiveness to reduce the size of the shadow economy, the objective of the thesis has been achieved.
With the help of research and collected data, I came to the conclusion that, in order to successfully tackle the size of shadow economy, it is important to introduce measures that need to be suitable for a particular country. However, the time period also has a significant impact, as financial and economic crises greatly paralyze any country. Tax culture and educating the population are important factors, as they also reflect a commitment to fair payment of the taxes.
Considering the comparison of the effectiveness of measures to reduce shadow economy between Slovenia and the selected EU countries, there are suggested options proposed for introducing additional measures in Slovenia, following the example of northern EU countries. Suggestions follow the direction of educating the population about the benefits of paying taxes and gradually improving tax culture, encouraging non-cash operations and tax incentives for entrepreneurs.
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