Gray income hits $1.01 trln

The total amount of gray income in China reached 6.2 trillion yuan ($1.01 trillion) in 2011, 12 percent of the year's GDP, Caixin magazine reported Monday citing a scholar.

The report is based on the third study on China's gray income and income distribution done by Wang Xiaolu, professor of the China Reform Foundation. The total amount of gray income in 2008 was 5.4 trillion yuan, according to his last study published in 2010.

Gray income refers to hidden income that is unable to be identified as legal income, due to tax evasion and other illegal activities.