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The Effectiveness of Digital Payments in Tackling Tax Evasion in Greece

Author

Listed:
  • Theodoros Kounadeas
Abstract
Purpose: The present paper aims to provide robust answers to the research question if digital payments can contribute to a reduction in tax evasion. Design/Methodology/Approach: To answer the research question, regression analysis was performed to determine if there a positive and statistically significant correlation between tax revenues and GDP, as well as between tax revenues and the use of electronic payment instruments. Data were collected from the Greek Independent Authority for Public Revenue (IAPR) and from the Bank of Greece. Findings: The results of the research showed that the use of digital payments does not lead to an increase in tax revenues. Although over time there has been an increase in the use of electronic payment instruments and an increase in the volume of transactions, tax revenues have fluctuated significantly. Practical Implications: Electronic payment methods are a modern way of making transactions and are an instrument which can be used to reduce tax evasion through transparency and better control. Originality/value: This research do not link in a statistically significant way the use of electronic payment instruments and the increase of tax revenues.

Suggested Citation

  • Theodoros Kounadeas, 2023. "The Effectiveness of Digital Payments in Tackling Tax Evasion in Greece," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 3-21.
    • Handle: RePEc:ers:ijebaa:v:xi:y:2023:i:2:p:3-21
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    References listed on IDEAS

    as
    1. Giovanni Immordino & Francesco Flaviano Russo, 2018. "Fighting Tax Evasion by Discouraging the Use of Cash?," Fiscal Studies, John Wiley & Sons, vol. 39(2), pages 343-364, June.
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    8. Gábor Lovics & Katalin Szõke & Csaba G. Tóth & Bálint Ván, 2019. "The Effect of the Introduction of Online Cash Registers on Reported Turnover in Hungary," MNB Occasional Papers 2019/137, Magyar Nemzeti Bank (Central Bank of Hungary).
    9. Amakoe D. Alognon & Antonios M. Koumpias & Jorge Martínez-Vázquez, 2021. "The Impact of Plastic Money Use on VAT Compliance: Evidence from EU Countries," Hacienda Pública Española / Review of Public Economics, IEF, vol. 239(4), pages 5-26, November.
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    11. Mihail Diakomihalis, 2020. "Factors of Tax Evasion in Greece: Taxpayers’ Perspective," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 6(2), pages 180-195.
    12. N. Eriotis & S. Missiakoulis & I. Ntokas & M. Tzavaras & D. Vasiliou & E. Thalassinos, 2021. "Tax Αvoidance and Transfer Pricing: A VECM Regression Model," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(1), pages 50-67.
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    More about this item

    Keywords

    Tax Evasion; Tax Accounting; Digital Payments.;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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