THE ROLE OF TAX CONTROL IN REDUCING THE SIZE OF THE SHADOW ECONOMY

Abstract

This article explores the critical role of tax control mechanisms in mitigating the size of the shadow economy. The shadow economy, characterized by unreported income and transactions that evade taxation, poses significant challenges to economic stability and government revenue. The article examines various tax control strategies, including enhanced enforcement, improved compliance measures, and the use of technology to monitor financial transactions. It discusses how effective tax control can deter tax evasion, promote transparency, and encourage businesses to operate within the formal economy. Furthermore, the article highlights case studies from different countries that have successfully implemented tax control measures to reduce shadow economic activities. Ultimately, it argues that a robust tax control system is essential for fostering a fair and equitable economic environment