Italy’s Black Economy: Corporate Indiscretion – The Primrose Path

Abstract

Black economy activities are widespread in nearly all economies but Italy appears to have a pronounced problem in this area. Small privately‐owned companies in Italy find it relatively easy to engage in black economy activities – mainly the practice of tax evasion, that is, fraudulent and illegal activities undertaken to reduce tax liability. Illustrates how the black economy works in a typical small Italian company. Also examines some of the main implications for government and companies: in particular, the effects of a new law to curb tax evasion by small companies.

Citation

McDonald, F., Dwyer, M. and Wendt, F. (1994), "Italy’s Black Economy: Corporate Indiscretion – The Primrose Path", Management Decision, Vol. 32 No. 3, pp. 49-52. https://doi.org/10.1108/00251749410057401