Issues of Regulation of Blockchains in the Digital Economy and World Experience in Reducing, Preventing the "Hidden Economy"

This article describes the circulation of cryptocurrencies, its characteristics, international regulatory practices, as well as the attitude of Central Banks to cryptocurrencies. In our country proposals for regulating the circulation of cryptocurrencies have been developed. Ensuring regional economic security is an important aspect of regional policy. The main goal in this regard is to increase the competitiveness of the country and its regions. This article analyzes the main factors influencing the "hidden economy", its formation and development.

Money laundering operations and ways of confronting them through the banking system

The purpose of this article to identify the hidden economy and money laundering operations and expose the backgrounds, social and banking them, and clarify the relationship between them. Also clarifying the position of the banking system from money laundering practices through the procedures followed, Furthermore to address the size of this issue and the methods used in laundering the money, since money laundering is a phenomena that all world states suffer from because of its negative impacts on social, economic and political aspects in any state. The spread of such phenomena can be attributed to various reasons that may be subjective of procedural, among them the fail of national legislation or the absence of cooperation between the concerned. Due to the impact of such phenomena international, regional and local efforts were exerted to fight this phenomena through international agreements, Purpose to achieve the objectives of the research has been formulated a main hypothesis as follows: The procedures followed and the laws in force in the field of money laundering are still limited to reviewing this phenomenon and besieging and addressing it. The study will employ the analytical method to test its hypotheses. It will be divided into three chapters in its theoretical and practical aspects, money laundering operations and ways of confronting them through the banking system. The first chapter deals with the theoretical framework of the study, which includes three subjects. Money laundering, the second chapter includes the role of the banking system in the face of money laundering, and the third was devoted to presenting the practical side of the role of the banking system in the face of money laundering. The practical side has collected the required liabilities from within the banking system in the province. Finally, conclusions and proposals for the study were reached. It concoded to us Money laundering is an integral part of the hidden economy and appears in the illegal part of it, as it hides the sources of illicit funds and turns them into legitimate sources. And the hidden economy, and without these operations, money would not be able to return to the apparent economy.

Estimating the size of the shadow economy in Poland

The shadow economy, as an interdisciplinary phenomenon, generates many controversies and difficulties for researchers. Economic entities operating within the non-observed (hidden) economy strive to escape official records, therefore a direct estimation of the extent of the phenomenon remains unobtainable. The aim of this article is to present the results of the estimation of the size of the shadow economy in Poland on the basis of the differences between GDP calculated according to the ‘production’ and the ‘expenditure’ approaches. The authors propose an original technique based on the idea of residual methods. In the course of the study, two models describing the dependencies between the growth of GDP and the growth of indicators used in the in the above-mentioned approaches to GDP calculation were established. The identified differences between the value of this measure calculated according to the production and expenditure approaches were used for the estimation of the size of the shadow economy in Poland, presented as a share in GDP. The analysis was carried out on the basis of panel data reflecting the values of selected macroeconomic indicators measured on the voivodship scale in the years 2000–2017, drawn from the Local Data Bank of Statistics Poland. The obtained results resemble to a large extent the estimates of the shadow economy by Statistics Poland and EY, and also partly that by United Nations Global Compact. The analysis presented in the paper is part of the research conducted by the Centre for Non-Observed Economy Srudies (OGN) at the Statistical Office in Kielce, whose aim is to improve the methodology currently used by official statistics in Poland.

WAYS TO IMPROVE THE MECHANISM FOR COLLECTING VALUE ADDED TAX

Today, based on the importance of the role of indirect taxes in the replenishment of the state budget, systematic measures are being taken to increase the number of business entities and increase the newly created added value. In this article, based on the analysis of tax rates of foreign countries, the issues of improving the mechanism of collecting value-added tax in Uzbekistan, increasing the competitiveness of the national economy with a lower tax rate are considered.Keywords: Value Added Tax, honest taxpayer, budget revenue, indirect taxes, principal instrument, intangible asset,hidden economy, production and reproduction, invoices.

Characteristics of the hidden economy in Hungary before and after the regime change

Lately, economists and policymakers have been paying even closer attention to the hidden economy. Indeed, it makes a difference to the economy how much money goes into the state coffers. To uncover the hidden economy, however, it is necessary to be familiar with its nature and manifestations. In this paper, with the aid of previous research and literature, we attempt to illustrate the characteristics of the hidden economy in Hungary before and after the regime change and to map out the steps that have been taken to uncover it. This publication was preceded by a systematic literature review on the definition, causes, and effects of the hidden economy, consisting of the collection of both data and literature related to the domestic hidden economy. The following summarizes the results from the synthesis of literature: The Hungarian hidden economy existed even before the regime change and took a variety of different forms. These include tips, bribes, informal payments, unauthorized work and patchwork, moonlighting, unauthorized rental of real estate, use of the social property for personal gain, gains from the infringement of customs and exchange law, tax fraud by craftsmen and retailers, theft of public property, and corruption. Since 1990, not only have the dynamics of the hidden economy strengthened, but its types of activities have changed significantly as well. These include, but are not limited to: omitting a portion of revenue from the register; recognizing non-incurred material production costs among expenditures; including an excessive portion of personal household maintenance costs among production costs; organizing business and study trips abroad; finder’s fee; end-of-year depreciation or ‘transfer’ of inventories; wages of registered employees paid out of pocket; employment of unreported employees; parallel company formation; the economic activity of unincorporated individuals and the income generated thereby. The following are among the concrete steps taken in recent years to uncover the Hungarian hidden economy: the temporary employment booklet; the simplified entrepreneurial tax; the Electronic Trade and Transport Control System; online cash registers; the connection of vending machines to the tax office.

Tax reform of 2019 in Uzbekistan

This article discusses how the tax reforms affect the budget and business atmosphere in Uzbekistan. The country has already implemented several tax methods but few of them have made the economy flourish. Yet, recent changes differ from previous ones with these reforms reflecting the experiences of those countries whose economy is highly affected by the tax in a positive way. In order to dramatically decrease the tax burden on companies and individuals, the number of direct taxes has been cut hoping to open the hidden economy in the country. However, the meaning of direct taxes has been moved into indirect ones such as VAT. Below we will do our best to analyze the outcomes of the previous tax reforms and offer some taxation mechanisms which can help the economy of the country.

Formal versus informal practices

The trading of medicinal and aromatic plants (MAPs) is a traditional means of livelihood in rural areas along the Trans-Himalayan Silk Road and is an important source of revenue for the government of Nepal. Researchers estimate that the officially recorded export value of Nepalese MAPs is many times less than the amount actually exported. MAPs in Nepal are harvested by individuals mostly from the wild and are channelled through intermediate actors within a confusing policy environment. An official permit is required to collect ‘non-timber forest products’ and the Department of Forestry is responsible for regulating the MAPs trade in Nepal by issuing permits and collecting revenue. The hidden economy and informal practices are thus more likely to be used in sectors where permissions are necessary for harvesting, locally transporting, and exporting any commodity.