Expense based precautions the fight against informal economy

Informal Economy, is an economic fact that causes some kinds of economic effects on both developed or developing countries? economies. The factors carry with informal economy, differ from countries? economic structure. Nonetheless, cash economy, tax policy, employment policy, productivity, inflation and economic crises are the other reasons of informal economy.Economic activities partaking in informal economy cause not to paying tax or paying tax less, by this way tax revenues of government falls. Informal economy causes tax and social insurance Premium loss and this loss has it its train budget deficits. Just to prevent this rising tax rates is an obligatory which causes to deform budget revenue structure. Problems on budget balance deepen interest burden and borrowing. Finally risks come into being on sustainable growth.Confirming size of informal economy and tax loss, which causes so many problems, is very diffucult. One of the most important reasons about informal economy and tax loss connedcted with it, is not to provide invoice traffic enough. Precautions which could be provide invoice system to avoid informal economy must be integrated to economic system.In some countries, applications like; following expenses, controlling increases in fortune and searching its resource by following expenses, are executed by integration of banking system. Except this, application like paying prize to expenses is exist. Becoming widespread of banking and credit card usage; not only prevent informal economy but also; makes positive effects on general economy.One of most important effect of credit cards is preventing informal economy and by this way increasing tax revenues. For taxpayers credit card is a good payment instrument and it makes purchasing easier. On the other hand it is a good following mechanism and revenue source for the Revenue Administration Department.Fixing lottery in invoices is an incentive to provide invoice traffic and this application executing successfully in some countries like Chine to prevent informal economy and raising tax revenues. This application also can be a model for Turkey.