Black Economy Law and Legal Definition

Black economy is that part of a country’s economy where the production or private cash transactions go unrecorded or unreported. Black economy results from activities and sources that fall outside of the country’s rules and regulations regarding tax and commerce. The activities that constitute a black economy can be either legal where taxes are not paid, or illegal such as drug dealing and prostitution. It also depends upon the type of goods and services that are involved in the activities. The size of the black economy is unknown to every one in the world.