Transition, Vol. 26 No. 53, 2025.
Review article
RESEARCH OF THE IMPACT OF COLLECTION OF DIRECT TAXES ON THE GRAY ECONOMY IN BOSNIA AND HERZEGOVINA
Elmir Ramić
orcid.org/0009-0001-0490-3632
Abstract
In a broader sense, the gray economy is understood as the performance of economic activity
in violation of relevant legal norms (informal economy) or against legal regulations (illegal
economy). The shadow economy threatens the very essence of the relationship of trust and
loyalty between the state and its inhabitants, that is, citizens and the economy. In most cases,
citizens seek justification for participants in the gray economy due to insufficient knowledge
of the harmful consequences that the gray economy causes on their quality of life, nor how
many illegitimate benefits the gray economy participants obtain. This paper will investigate
the impact of the collection of direct taxes on the gray economy in Bosnia and Herzegovina
based on relevant literature, statistical data, examples from practice and statistical methods.
The goal of the paper is to point out the need for greater involvement of the state to reduce the
gray economy and protect the public interest.
Keywords
gray economy, direct taxes, statistical methods
Hrčak ID:
336270
URI
Publication date:
6.10.2025.
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