shadow economy and tax avoidance

The shadow economy refers to the economic activities that are unregulated, untaxed, and undocumented. It includes both legal activities that are not reported for tax purposes, as well as illegal activities such as drug trafficking and smuggling. Tax avoidance, on the other hand, refers to the legal methods used by individuals or businesses to reduce their taxable income and minimize the amount of taxes they have to pay. It often involves exploiting loopholes in tax laws, using offshore accounts, or engaging in complex financial transactions to avoid or minimize the payment of taxes.

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