This article provides an in-depth analysis of the content, forms of the shadow economy, and the negative consequences it has on the state budget and economic stability. In particular, the role of tax legislation in reducing and preventing the shadow economy is discussed, and what positive results can be achieved through its improvement. The reforms being carried out in the tax sector in the Republic of Uzbekistan, tax administration, digitalization processes, and their role in reducing the shadow economy are analyzed separately. The author provides a detailed analysis of the existing problem and provides suggestions and recommendations for its solution.

Hidden economy, tax law, tax administration, economic reforms, informal activity, digitalization, fiscal discipline, budget revenues, informal labor, economic stability

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