caa a22 4500 60621030X CHVBK 20210128101032.0 cr unu---uuuuu 210128e20150501xx s 000 0 eng 10.1007/s10101-015-0165-x doi (NATIONALLICENCE)springer-10.1007/s10101-015-0165-x Viren Matti Bank of Finland, Helsinki, Finland aut Why so little revenues are obtained from a presumed large shadow economy? [Elektronische Daten] [Matti Viren] This paper deals with the gap between very high estimates of the size of the shadow economy and the small amount of government revenue that is obtained by means of tax inspections and regulatory activities. We use Finland as an example of a country where substantial amounts of new resources have recently been devoted to shadow economy inspections at the same time as new regulations have been introduced to curtail shadow economy activities. Thus far, the fiscal results appear to be very modest. We use new micro data from the Finnish Tax Administration's tax audits to examine the reasons for this disappointing result. It appears that, to a large extent, the explanation is related to the small size of the shadow economy firms, poor economic performance of the firms, the judicial forms of the firms, and to foreign ownership. Against this background it does not seem likely that much more revenue could be generated from the shadow economy activities in the future. It may also be that the result reflects the fact that the shadow economy is, after all, much smaller than what is argued in public debate. Springer-Verlag Berlin Heidelberg, 2015 Shadow economy nationallicence National accounts nationallicence Taxation nationallicence Tax audits nationallicence Economics of Governance Springer Berlin Heidelberg 16/2(2015-05-01), 101-123 1435-6104 16:2<101 2015 16 10101 https://doi.org/10.1007/s10101-015-0165-x text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s10101-015-0165-x text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Viren Matti Bank of Finland, Helsinki, Finland aut NATIONALLICENCE 773 0- Economics of Governance Springer Berlin Heidelberg 16/2(2015-05-01), 101-123 1435-6104 16:2<101 2015 16 10101