Shadow Economies and Economic Crises
Added on 2020-04-01
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Running head: TAXTaxName of the Student:Name of the University:Authors Note:
TAX1Table of ContentsAnswer to Question A:....................................................................................................................2Answer to Question B......................................................................................................................3Answer to Question C:.....................................................................................................................8
TAX2Answer to Question A:Shared EconomyA shared economy can be define as an economy where an individual has the capacity tooriginate or rent resources or services that are owned by some other individual being of thatcountry. It can also be define as economy that shared all the resources and services ininterchange of either suitable fees or may be compensation or open among the private individualof that country (Schneider et al., 2015). The system of shared economy is in use since the startingof the society. The process of sharing has been changed during the years but the purpose is moreor less the same. The main objective of the shared economy has always been to enrich andenlightened the lives of the people of the country. Now a days, sharing has now become lot morepossible, convenient and easy at a large level due to the introduction of internet in day to day life.In a shared economy there is the emergence of plentiful opportunities where the resources areused by a groups or individual in order to produce money but these things are absent in closedeconomy (Williams, 2014).Black EconomyThe segment of country’s economic activity that is derived from the sources that falloutside the country’s rules and regulation regarding commerce. The activities can be either legalor illegal depending on what goods and services involve. This is called Black Economy. On theother hand White Economy can be define as such portion of the economy where there is a properaccounts which is abides by the country’s rules and regulation. It is generally opposite of whiteeconomy (Schneider, 2015). In Black economy, the economy does not follow the guidelines andprotocol of commerce of that country and thus the activity of such economy are not accountedfor taxation purpose. An example of such economy is that the illegal weapons trade is the
TAX3example of black economy. Another example is the payments of workers working inconstruction site where the workers are working legally but their payments are done illegallythrough cash so that tax can be avoided by both the workers and the person who is making thepayments.Answer to Question BThe Uber is a business that operates in Australia under sharing economy and Cab chargeis a business that operates under traditional business model. Both businesses operate in the sameindustry in Australia, i.e. in transport business. The objective of this part of the document is toexplain the various aspects associated with the shared economy and more traditional economyand how these aspects influence the business operations of organizations operating under theseeconomy models. As already mentioned in a sharing economy the private individuals are allowedand have the right to use the unused assets for their benefit in exchange of fees or free of costsdepending upon the kind of resources or assets to be used. Traditional business model on theother hand is nothing like sharing economy as the assets in tradition economy are only allowed tobe used by the owners for their own business and other purposes. These two organizations, i.e.Uber Australia and Cab charge, and their structures shall be discussed to under the characteristicsof these two economy models better (Schneider & Kearney, 2013). Uber Australia is a business organization that allows individuals to book cars and cabsaccording to their needs for travelling and commuting purposes. The concept of business of thecompany is to allow the customers to use the cars according to their needs by paying due fare.The structure of the business is such that it allows individuals to book ride instantly as well asadvance bookings of ride for later periods by using mobile apps and online bookings (Guttentag,2015). Whether the ride is for short distance or for long distance, the customers have the right to
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