Taxation Commons^™

This diagnostic report evaluates the extent, nature and drivers of the undeclared economy in Albania. Based on desk-research and interviews with various stakeholders, this report sets the scene for a strategy and action plan for tackling undeclared work in Albania, presented in a separate document.

When explaining and tackling the undeclared economy in Central

and Eastern Europe, participants have been conventionally viewed

as rational economic actors. They engage in undeclared work

when the benefits outweigh the costs. Participation is thus

deterred by increasing the sanctions and/or probability of being

caught. Recently, however, an alternative social actor approach

has emerged which views participants as engaging in undeclared

work when their norms, values and beliefs (i.e. citizen morale) do

not align with laws and regulations (i.e. state morale). Here, therefore,

initiatives to develop greater symmetry between civic and

state morale are pursued. To evaluate the validity and …