Schneider, Fr., Williams, C., (2013), “The Shadow Economy”, The Institute of Economic Affairs.
To some people, the shadow economy is a great example of free economic activity at work. It is entirely unregulated except by the participants themselves; no tax is paid on shadow economic activity; and it may be possible to pursue activities in the shadow economy which are prohibited by law unjustly. Indeed, the smugglers of Sussex are still commemorated by the uniforms worn by members of bonfire societies on Guy Fawkes Night and they were, indeed, known as ‘free traders’.