Business News

Shadow Economy at 8.3% of GDP in 2010

Ljubljana, 27 June (STA) - The shadow economy in Slovenia measured using value added stood at EUR 2.855bn in 2010, which amounted to 8.3% of GDP, the Statistics Office said on Thursday.

The shadow economy almost exclusively incorporates economic activity for which taxes and contributions have not been paid, according to the Statistics Office.

It said that the problem is divided into entities that perform activities without being registered (moonlighting) and registered entities that either misreport their income or their expenses.

The former is linked foremost to renting of apartments, transportation services, tutoring, alternative medicine and nanny services.

The latter form of the shadow economy is manifested mostly by a failure to issue receipts with which lower income is reported, or the inclusion of expenses which are not related to operations and which lower the profit of the entity.

The most problematic in this case are services rendered directly to customers or households and which are paid in cash, including hospitality services and minor construction works.

The total value of the shadow economy also includes illegal activities and legal entities and individuals which are not included in sources of income.

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