Possible Smart City Solutions in the Fight against Black Economy

Piroska Dobos () and Katalin Takacs-Gyorgy
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Piroska Dobos: Obuda University, Doctoral School on Safety and Security Sciences, Budapest, Hungary
Katalin Takacs-Gyorgy: Obuda University, Faculty of Business and Management, Budapest, Hungary

Interdisciplinary Description of Complex Systems - scientific journal, 2019, vol. 17, issue 3-A, 468-475

Abstract: According to international statistics, Hungary has a high ratio of black economy. On December 31th of 2017, the number of registered corporations reached 1.7 million, of which 395 910 were registered in Budapest [1]. There is a clear need for such measures and developments that are aimed to track corporations at the e-government level, and such infocommunicational equipment and services that essentially promote the arrangement of data. Black employment is one of the most easily identified territories of the hidden economy. Employers must register the working hours, and they are also responsible for the factual, real and entire content of the registry. A number of entry systems are available which - besides ensuring electronic protection - are also suitable for registering the working hours. These systems, however, have both advantages and disadvantages, and different types of abuses have become widespread. The purpose of the study is to provide an overview of these systems based on their ability to reduce black employment and the limitations of their applicability from the point of data protection, with particular attention to the introduction of the General Data Protection Regulation of the European Union from 25 May 2018 in all member states. Employers manage data through their legitimate interest on web and telephone usage, control of emails, or even GPS-based location information. Likewise, legitimate interest is also the basis of the introduction of workplace monitoring systems. To reduce the size of the black economy, the use of an electronic system would be the most suitable tool - which would transfer the information extracted from the system to an immediate tax authority - based on the patterns of online cash registers or online billing programs. This, on the one hand, could provide the basis for the necessary identification and work documentation, but on the other hand, it raises the risk of excessive data handling, which is illegal.

Keywords: hidden economy; black employment; access control systems; security solutions; e-government (search for similar items in EconPapers)
JEL-codes: H26 (search for similar items in EconPapers)
Date: 2019
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