Black Market

Black Market Definition

Black Market is the term designating the illicit sale of commodities in violation of government rationing and price-fixing. The term originated in Europe during World War I, when the introduction of rationing in belligerent countries tempted some persons with access to supplies to enrich themselves by selling unrestricted quantities of rationed items at inflated prices.

Times of Crisis

Black markets are phenomena of times of crisis. They flourish only when an abnormal scarcity of essential goods may cause a government to impose rationing and price controls as a means of ensuring a more equitable distribution of supplies. At such times certain consumers will pay abnormally high prices to obtain the scarce items, and some profiteers are prepared to take legal and other risks to obtain and sell these items at high prices. Black markets flourished throughout World War II but disappeared after the war as soon as the production of civilian goods returned to normal and government controls were lifted.

Illicit currency exchanges are also sometimes defined as black market operations. These black markets develop when the official exchange value of a currency is fixed at a rate that does not reflect its real exchange value. Such a situation is an incentive for holders of foreign currencies to engage in extralegal currency exchanges rather than to use the less profitable exchanges at official rates.

Other Popular Tax Definitions in the World Legal Encyclopedia

• Adjusted Gross Income (sometimes, including Black Market)
• Ad Valorem Tax (sometimes, including Black Market)
• Alternative Minimum Tax (sometimes, including Black Market)
• Big Four (audit firms) (sometimes, including Black Market)
• Black Market (sometimes, including Black Market)
• Capital Gain (sometimes, including Black Market)
• Capital Gains Tax (sometimes, including Black Market)
• Carbon Tax (sometimes, including Black Market)
• Church Tax (sometimes, including Black Market)
• Corporate Tax (sometimes, including Black Market)
• Corporate Tax (sometimes, including Black Market)
• Customs (sometimes, including Black Market)
• Deferred Tax (sometimes, including Black Market)
• Depreciation (sometimes, including Black Market)
• Dividend (sometimes, including Black Market)
• Employer Identification Number (sometimes, including Black Market)
• Estate Tax (sometimes, including Black Market)
• Excise (sometimes, including Black Market)
• Fiscal Policy (sometimes, including Black Market)
• Fiscal Year (sometimes, including Black Market)
• Flexible Spending Account (sometimes, including Black Market)
• Government Spending (sometimes, including Black Market)
• Gross Income (sometimes, including Black Market)
• Health Savings Account (sometimes, including Black Market)
• History of Taxation (sometimes, including Black Market)
• Income Tax (sometimes, including Black Market)
• Income tax (sometimes, including Black Market)
• Income Tax (sometimes, including Black Market)
• Income Tax Law (sometimes, including Black Market)
• Indirect Tax (sometimes, including Black Market)
• Inheritance Tax (sometimes, including Black Market)
• Offshore Bank (sometimes, including Black Market)
• Payroll Tax (sometimes, including Black Market)
• Progressive Tax (sometimes, including Black Market)
• Property Tax (sometimes, including Black Market)
• Public Finance (sometimes, including Black Market)
• Rate Schedule (Federal Income Tax) (sometimes, including Black Market)
• Real Estate Investment Trust (sometimes, including Black Market)
• Regressive Tax (sometimes, including Black Market)
• Sales tax (sometimes, including Black Market)
• Sales Tax (sometimes, including Black Market)
• Subsidy (sometimes, including Black Market)
• Tariff (sometimes, including Black Market)
• Tax (sometimes, including Black Market)
• Taxation (sometimes, including Black Market)
• Taxation and Customs Union (sometimes, including Black Market)
• Taxation Definition (sometimes, including Black Market)
• Taxation (in different countries) (sometimes, including Black Market)
• Taxation in the European Union (sometimes, including Black Market)
• Taxation Office (sometimes, including Black Market)
• Taxation Principles (sometimes, including Black Market)
• Taxation without representation (sometimes, including Black Market)
• Tax Bracket (sometimes, including Black Market)
• Tax Code (sometimes, including Black Market)
• Tax Code (sometimes, including Black Market)
• Tax Deducted at Source (sometimes, including Black Market)
• Tax Evasion (sometimes, including Black Market)
• Tax exemption (sometimes, including Black Market)
• Tax Forms (sometimes, including Black Market)
• Tax Haven (sometimes, including Black Market)
• Tax Law (sometimes, including Black Market)
• Tax Law Careers (sometimes, including Black Market)
• Tax Law Jobs (sometimes, including Black Market)
• Tax Rate (sometimes, including Black Market)
• Transfer Pricing (sometimes, including Black Market)
• Types of Taxation (sometimes, including Black Market)
• Types of Taxes (sometimes, including Black Market)
• Value Added Tax (sometimes, including Black Market)
• VAT Identification Number (sometimes, including Black Market)
• Withholding Tax (sometimes, including Black Market)

Black Market

Resources

See Also

• International Economic Law
• Economy
• Foreign Direct Investment
• Economic Law

Resources

See Also

• Gray market goods