Preconditions for Shadowing of the Metal-Procurement Enterprises in the Context of Unshadowing of Economy in Ukraine
Journal Title: Бізнес Інформ - Year 2015, Vol 2, Issue 0
Abstract
The article is aimed at the actual topic of unshadowing the turnover of enterprises of the metal-procurement industry. A specific feature of the Ukrainian informal economy are those industries that are involved in shadow schemes. In the paper, on example of the metal-procurement and the scrap metal industry, the conditions and preconditions for shadowing of domestic enterprises are analyzed, the main «gray schemes» are explored. The analyzed industries is an example of diffusion of the shadow economy and corruption. Among the reasons for enterprise's withdraw into the shadows have been identified restrictions on cash payment for ferrous scrap, barriers to legal work of industry, legislative support of certain «gray schemes», high level of corruption. The major «gray scheme» of the metal-procurement enterprises in accordance with the hierarchy of business from reception yards to steel mills has been disclosed, effects of its implementation have been revealed. It has been shown that the use of «gray schemes» by the industry of procurement of ferrous scrap causes a huge losses to the revenue side of the budget, and damages the raw-material base of the country as a whole. The article offers a number of measures aimed at the legalization of the metal-procurement and scrap metal businesses, which will lead to a compromise between the interests of the State and entrepreneurs.
Authors and Affiliations
Ganna Iastrebova
Keywords
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