Workbook 18

Activity 1: Underground Economy

Get Focused

You may have heard of or are already familiar with the issue of the underground economy. Consider someone who sells goods out of his or her home and does not pay taxes on the income from those sales.  What might be the affect if many people did not pay taxes on the income they earn?

 
 

In this activity, you will investigate these questions:

• What is an underground economy?
• How does the underground economy affect the provincial and federal tax base and social programs?