Economic, financial and social consequences of the undeclared economy

The report produced by the ESEC chooses a clear and precise definition which corresponds to a section of the non-observed economy as identified by the OECD, that is «all legal production activities that are deliberately concealed from public authorities [...] to avoid payment of income, value added or other taxes; to avoid payment of social security contributions [or] to avoid having to meet certain legal standards», and which covers all undeclared work and the understatement of declared income.