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>Japan's Underground Economy: Tax Evasion, Bribery, Prostitution, and Drugs - Chapter 6. Future Outlook: Where Will the Underground Economy Go from Here?
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Japan's Underground Economy: Tax Evasion, Bribery, Prostitution, and Drugs - Chapter 6. Future Outlook: Where Will the Underground Economy Go from Here?
The estimates of the size of the underground economy developed in Chapters 3 and 4 show that Japan's underground economy is currently decreasing in size, and is relatively small as compared with other nations. The reasons for this, already outlined, are that (1) the implementation of successive tax cuts since the 1990s has reduced the direct tax burden on corporations and individuals, weakening the incentive to practice tax evasion, and (2) stricter government regulations against economic activities in the underground economy have been adopted.
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