January 10, 2012 > BOE partners with industry to combat underground economy
BOE partners with industry to combat underground economy
Strategic cooperation key to minimizing revenue loss
Submitted By California Board of Equalization
Stepping up efforts to combat the loss of revenue as a result of unregulated and/or illegal sales of goods and services, members of the Board of Equalization (BOE), legislators and industry leaders met on January 4, 2012, at the State Capitol to find collaborative solutions to capture the estimated $60 billion stolen annually from Californians through the underground economy.
The term "underground economy" refers to those individuals and businesses that deal in cash and/or use other schemes to conceal their activities, identities and true tax liability from government licensing, regulatory and taxing agencies. The "underground economy" includes activities that range from the sale of stolen or counterfeit products to the exploitation of victims of human trafficking.
The Underground Economy Industry Meeting included BOE Chairman and Fourth District Member Jerome E. Horton, BOE First District Member Betty T. Yee, representatives from the California Chamber of Commerce and leaders representing a broad range of California industries, including electronics, fashion, motion pictures, pharmaceutical, construction and others.
The BOE wishes to continue partnering with stakeholders to stem the loss of revenue that helps fund vital services for Californians, such as hospitals, roads, schools and public safety. Since those who operate in the underground economy use the same services as taxpayers and fee-payers without making the same contribution, each and every Californian is impacted by this underground activity.
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