An influence of citizens shadow income on the level of tax revenues in budgets of FEFD regions

Formation of the tax policy effective mechanism is inseparably linked with problems of individuals income taxation improvement and decreasing of shadow economy factors influence. The research studies the quantitative assessment methods of the budget tax losses from shadow economy. As a result of the research the main approaches to shadow economy assessment were defined and they can be divided into direct and indirect methods. The method of divergences and comparison of data from various sources allowed to reveal the most widespread types of shadow activity in FEFD regions: informal employment and evasion from income tax payment. Mobilization of potential tax revenues from the individuals income in the budgetary system can reduce a shortage of regional budgets and lower loading of the state financial system.