Abstract:

Unrecorded economy is described as economical activities that are not recorded in gross national product accounts. It has features like being unethical, being done with cash money and being statistically unmeasurable. Illegal economic activities, semi-registered economic activities and unregistered economic activities are elements of unrecorded economy. The main reasons for unrecorded economy are as follows; financial, economic and political. Audit has an important role in fighting with unrecorded economy. An efficient tax audit structure along with civic responsibility shall prevent unrecorded economy and should create an accord between the audit structure and the taxpayer and should narrow down certain exemptions for some taxpayers. What needs to be done is a financial revision, establishing an efficient inspection system and creating awareness about tax paying.

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