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Alex777 [14]
3 years ago
13

What is the underground economy

Social Studies
1 answer:
yan [13]3 years ago
7 0

Answer: undergound economy is when goods and services are bought and sold under the table without receipts, invoices or bills or any document that accredits the transaction. The intention is not to pay taxes and avoid expenses related to the transactions.

Explanation: the reason of underground economy is mainly poverty, ignorance and excessive regulation. Governments also make the cost of being formal and paying taxes very expensive with excessive regulations that tend to sink companies with high taxes and debt.

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