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Definition: Underground economy

SNA 1993

The underground economy consists of activities that may be both productive in an economic sense and also quite legal (provided certain standards or regulations are complied with) but which are deliberately concealed from public authorities (e.g. to avoid the payment of taxes and/or social security contributions or to avoid meeting certain standards or administrative requirements).
Source:
United Nations, "System of National Accounts (SNA) 1993", United Nations, New York, 1993, § 6.34
Created:
2005-02-02
Updated:
2019-05-10

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