Journal of money laundering control shadow economy and tax evasion in the eu friedrich schneider konrad raczkowski bogdan mrz article information. The 66th congress of the international institute of public finance held in uppsala sweden 23 26 august 2010 was devoted to the subject tax evasion . Issues such as tax evasion and the size and impact of the shadow economy have ranked highly in political and economic policy debates across the globe in recent years. Tax evasion and avoidance add to myft europes shadow economy costs eur454bn in lost taxes. We study the relationship between the underground economy and financial development in a model of tax evasion and the shadow economy under changing tax
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