ABSTRACT
When an individual participates in the cash economy and does not pay their fair share of tax, the rest of the community must bear the burden of higher taxes that may be needed to continue funding government expenditure. If there are only a small number of participants in these clandestine activities, the burden may be spread thinly on the community, diluting significantly any adverse effects on those complying with their tax obligations. If on the other hand, the numbers of participants are large and the extent of evasion is significant, the compliant community suffers. As we will see in the following chapter many complying Australian’s are shouldering a heavy burden for those who choose not to comply with their tax obligations.
