Measurement of Grey Economy and System Ways of Limiting it – Polish Example

Anna Cwiakala-Malys, Iwona Piotrowska, Małgorzata Durbajlo-Mrowiec, Paweł Lagowski
European Research Studies Journal, Volume XXIII, Special Issue 1, 997-1023, 2020
DOI: 10.35808/ersj/1866


Purpose: The aim of this article is to present results of estimating grey economy in Poland and detailed presentation of chosen solutions of legal-organisational and IT type introduced to Polish tax system in order to limit grey economy. Design/Methodology/Approach: The authors presented detailed analyses of empirical material from reports and surveys including those from the Central Statistical Office, the State Fiscal Administration, the Institute of Forecasting and Economic Analyses and the Ministry of Finance moreover they also included results of estimating grey economy by international experts for Europe and the world. In the article a descriptive and analytical-synthetic method was used. The article is a continuation of many years of research in the area of grey economy. Findings: An evaluation of grey economy must take into consideration advantages and disadvantages. Negative points are falsifying economic statistics, decreasing tax incomes to the state budget, faulty construction of macro-economic policy, false allocation of social funds. Functioning of economic entities in grey economy leads to destruction of social-economic life generating pathologies. An advantage of grey economy is an increasing number of working places, particularly for marginal workforce. People employed in this economy while not paying taxes directly, regulate indirect taxes, purchase goods and services taxed. Practical Implications: In order to more efficiently limit grey economy in Poland, it is necessary to constantly and systematically perform actions of a system type and not coercive. An important element is primary tax education and building tax mentality and morality. Originality/Value: The article presents a scope of actions taken and implemented by the government in the area of limiting grey economy in Poland in the last 5 years – economic-legal perspective of a problem. It constituted a basis for further research.

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