International Accounting

Abstracting and Indexing

Referativny Zhurnal VINITI RAS
Google Scholar

Online available



Cyberleninka (12 month OA embargo)

Non-observed economy as a source of tax revenue: Global practices and the Russian experience

Vol. 22, Iss. 9, SEPTEMBER 2019

Received: 20 December 2016

Received in revised form: 26 December 2016

Accepted: 17 January 2017

Available online: 16 September 2019

Subject Heading: Tax and taxation

JEL Classification: E60, E62, E64, H30

Pages: 1050–1066

Anisimova A.A. Financial University under Government of Russian Federation, Moscow, Russian Federation

ORCID id: not available

Subject Whereas it is necessary to finance various government programs and preserve fiscal sustainability in Russia, various countries amend their fiscal policies. Currently tax revenue of budgets is increased by reducing the non-observed economy more often, since the existing taxes or new taxes are not always practicable and feasible.
Objectives The research analyzes the sector of non-observed economy of the Russian Federation and possibilities to improve tax collectibility through the sector reduction.
Methods The first part of the article classifies non-observed economy and highlights differences of separate segments. The second part overviews data on hidden income in the Russian Federation to make approximate estimation of possible revenue from withholding tax.
Results Upon the analysis, I determined key segments of non-observed economy and possible measures in relation to each component. The article also indicates economic sectors of the Russian Federation with the highest and lowest percentage of hidden income and amounts of income per sector, estimating possible revenue from withholding tax.
Conclusions and Relevance Segments of non-observed economy include hidden production, illegal production, production in the informal sector, households' production for their own consumption and unaccounted production. To increase fiscal revenue of budgets, there should be measures to legitimize the segment of hidden economy and make it an official sector.

Keywords: non-observed economy, hidden income, tax revenue, fiscal sustainability, fiscal policy


  1. Anisimova A.A. [Strategic budgetary planning: evidence from Norway and Sweden]. Finansy = Finance, 2015, no. 5, pp. 72–80. (In Russ.)
  2. Kirchler E. The Economic Psychology of Tax Behaviour. Cambridge, Cambridge University Press, 2007. URL: Link
  3. Posner E.A. Law and Social Norms. Harvard University Press, 2000.
  4. Shvandar K.V., Plotnikov S.V., Borodin A.D. [Capabilities of modeling to forecast conditions of global commodity markets: evidence from the oil market]. Den'gi i kredit = Money and Credit, 2010, no. 4, pp. 63–69. (In Russ.)
  5. Var'yash I.Yu., Shvandar K.V., Burova T.F. [Updating macroeconomic forecasts in the budgeting process]. Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal = Financial Research Institute. Financial Journal, 2014, no. 4, pp. 118–128. (In Russ.)
  6. Schneider F., Buehn A. Shadow Economies in Highly Developed OECD Countries: What Are the Driving Forces? Discussion Paper, 2012, no. 6891. URL: Link
  7. Shvandar K.V. Mezhdunarodnaya konkurentosposobnost': sovremennyi vzglyad na kontseptsiyu [International competitiveness: a modern view of the concept]. Moscow, MAKS Press Publ., 2006, 288 p.
  8. Shvandar K.V. Mezhdunarodnaya konkurentosposobnost' stran-eksporterov nefti: sostoyanie, dinamika, perspektivy [International competitiveness of the petroleum exporting countries: current situation, trends, future]. Moscow, MAKS Press Publ., 2009, 156 p.
  9. Russell B. Revenue Administration: Managing the Shadow Economy. IMF, 2010. URL: Link
  10. Giles D. Measuring the Hidden Economy: Implications for Econometric Modelling. Economic Journal, 1999, vol. 109, iss. 3, pp. 370–380. URL: Link
  11. Pedersen S. The Shadow Economy in Germany, Great Britain and Scandinavia: A Measurement Based on Questionnaire Service. Study no. 10. Copenhagen, Rockwool Foundation Research Unit, 2003. URL: Link
  12. Anisimova A.A. [The diamond market: control at the international and national levels and taxation]. Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal = Financial Research Institute. Financial Journal, 2014, no. 4, pp. 135–143. (In Russ.)
  13. Kucera D., Roncolato L. Informal Employment: Two Contested Policy Issues. International Labor Review, 2008, vol. 147, iss. 4, pp. 321–348. URL: Link
  14. Teobaldelli D. Federalism and the Shadow Economy. Public Choice, 2011, vol. 146, iss. 3. URL: Link
  15. Allingham M.G., Sandmo A. Income Tax Evasion: A Theoretical Analysis. Journal of Public Economics, 1972, vol. 1, iss. 3, pp. 323–338. URL: Link
  16. Shvandar K.V., Anisimova А.А. Ogranichenie nalichnykh denezhnykh raschetov kak variant stimulirovaniya razvitiya beznalichnykh platezhei v ekonomike: zarubezhnyi opyt [Restriction of cash payments as an option to stimulate the development of cashless payments in economy: foreign practices]. Moscow, MAKS Press Publ., 2016, 79 p.
  17. Glazunov А.V., Shvandar K.V., Anisimova А.А. [Developing national payment systems as a current trend]. Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal = Financial Research Institute. Financial Journal, 2016, no. 5, pp. 94–102. (In Russ.)
  18. Schneider F. The Shadow Economy in Europe. JKU, 2013. URL: Link
  19. Schneider F. The Influence of Public Institutions on the Shadow Economy: An Empirical Investigation for OECD Countries. Review of Law and Economics, 2010, vol. 6, iss. 3, pp. 441–468. URL: Link
  20. Shvandar K.V., Anisimova A.A. [Foreign experience in developing the cashless payment system: practices and results]. Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal= Financial Research Institute. Financial Journal, 2015, no. 1, pp. 91–98. (In Russ.)

View all articles of issue


ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

Journal current issue

Vol. 22, Iss. 10
October 2019