THE FIGHT AGAINST THE SHADOW ECONOMY AND WAYS TO SOLVE PROBLEMS

The paper considers approaches to the defi nition of the shadow economy as components of economic activity carried out in the state, the main reasons for their spread, as well as possible ways to counter the expansion of its scale.The purpose of the research: to substantiate the causes of the emergence and spread of the shadow economy, to identify factors contributing to the reduction of its scale, to develop proposals to counteract the expansion of the shadow economy.Research methodology: in the course of the research, methods of logical, statistical, qualitative and quantitative analysis, as well as graphical methods of visualization of the results of the research were used.The originality / value of the research lies in the systematization of data on the substantiation of the essence of the shadow economy as part of the economy formed by criminal (illegal) economic activity of two types – entrepreneurial and criminal, the scale of which depends on the level of economic development of the country. The article presents conclusions on the comparison of the volume of capital exports, GDP, the shadow economy and the role of the cash market in reducing the scale of the shadow economy.The results of the research are expressed by recommendations for conducting research on the justifi cation of indicators for calculating the scale of the shadow economy and determining the scale by types and directions of economic and legal contents of the shadow economy, proposals for improving the procedure and mechanism of universal declaration as a tool for achieving the formality of economic activity of economic entities, recommendations for deepening research on trends in the development of the cash settlement market in the context of the impact on scaling down shadow economy.