IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/vxiy2023i2p3-21.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://ijeba.com/journal/805/download
    Download Restriction: no
    ---><---

    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.
    2. Bellon, Matthieu & Dabla-Norris, Era & Khalid, Salma & Lima, Frederico, 2022. "Digitalization to improve tax compliance: Evidence from VAT e-Invoicing in Peru," Journal of Public Economics, Elsevier, vol. 210(C).
    3. Theodoros Kounadeas & Nikolaos Eriotis & Paraskevi Boufounou & Donta Sofia, 2022. "Analysis of the Factors Affecting Tax Evasion in Greece," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 140-158.
    4. Saez, Emmanuel & Stantcheva, Stefanie, 2018. "A simpler theory of optimal capital taxation," Journal of Public Economics, Elsevier, vol. 162(C), pages 120-142.
    5. Immordino, Giovanni & Russo, Francesco Flaviano, 2018. "Cashless payments and tax evasion," European Journal of Political Economy, Elsevier, vol. 55(C), pages 36-43.
    6. Sadress Night & Juma Bananuka, 2019. "The mediating role of adoption of an electronic tax system in the relationship between attitude towards electronic tax system and tax compliance," Journal of Economics, Finance and Administrative Science, Emerald Group Publishing Limited, vol. 25(49), pages 73-88, April.
    7. Vasileios A. Vlachos & Aristidis Bitzenis, 2016. "Tax compliance of small enterprises in Greece," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 28(2/3), pages 380-389.
    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.
    10. Georgios L. Vousinas, 2017. "Shadow economy and tax evasion. The Achilles heel of Greek economy. Determinants, effects and policy proposals," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 20(4), pages 386-404, October.
    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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Antón, Arturo & Hernández-Trillo, Fausto & Ventosa-Santaulària, Daniel, 2021. "(In)Effective tax enforcement and demand for cash," Journal of Macroeconomics, Elsevier, vol. 70(C).
    3. Rainone, Edoardo, 2023. "Tax evasion policies and the demand for cash," Journal of Macroeconomics, Elsevier, vol. 76(C).
    4. Esteban Muñoz-Sobrado & Amedeo Piolatto & Antoine Zerbini & Federica Braccioli, 2024. "The Taxing Challenges of the State: Unveiling the Role of Fiscal & Administrative Capacity in Development," Working Papers 1432, Barcelona School of Economics.
    5. Bohne, Albrecht & Koumpias, Antonios M. & Tassi, Annalisa, 2023. "Cashless payments and tax evasion: Evidence from VAT gaps in the EU," ZEW Discussion Papers 23-060, ZEW - Leibniz Centre for European Economic Research.
    6. Francesco Flaviano Russo, 2022. "Cash thresholds, cash expenditure and tax evasion," Fiscal Studies, John Wiley & Sons, vol. 43(4), pages 387-403, December.
    7. Hellwig, Christian & Werquin, Nicolas, 2022. "A Fair Day's Pay for a Fair Day's Work: Optimal Tax Design as Redistributional Arbitrage," CEPR Discussion Papers 16863, C.E.P.R. Discussion Papers.
    8. Stefanie Stantcheva, 2020. "Dynamic Taxation," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 801-831, August.
    9. Florencia Pedroni, 2023. "Firm informality during the COVID-19 crisis in Argentina: perception of commercial entrepreneurs and public accountants," Estudios Gerenciales, Universidad Icesi, vol. 39(166), pages 24-36, March.
    10. Bellon, Matthieu & Dabla-Norris, Era & Khalid, Salma, 2023. "Technology and tax compliance spillovers: Evidence from a VAT e-invoicing reform in Peru," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 756-777.
    11. Findeisen, Sebastian & Sachs, Dominik, 2017. "Redistribution and insurance with simple tax instruments," Journal of Public Economics, Elsevier, vol. 146(C), pages 58-78.
    12. Thomas Aronsson & Sugata Ghosh & Ronald Wendner, 2023. "Positional preferences and efficiency in a dynamic economy," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(2), pages 311-337, August.
    13. Giammatteo, Michele & Iezzi, Stefano & Zizza, Roberta, 2022. "Pecunia olet. Cash usage and the underground economy," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 107-127.
    14. Karl Schulz, 2021. "Redistribution of Return Inequality," CESifo Working Paper Series 8996, CESifo.
    15. Yannic Rehm & Lucas Chancel, 2022. "Measuring the Carbon Content of Wealth Evidence from France and Germany," PSE Working Papers halshs-03828939, HAL.
    16. European Commission, 2018. "Tax Policies in the European Union: 2018 Survey," Taxation Survey 2018, Directorate General Taxation and Customs Union, European Commission.
    17. Theodoros Kounadeas & Nikolaos Eriotis & Paraskevi Boufounou & Donta Sofia, 2022. "Analysis of the Factors Affecting Tax Evasion in Greece," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 140-158.
    18. Moore, Rachel & Pecoraro, Brandon, 2023. "Quantitative analysis of a wealth tax for the United States: Exclusions and expenditures," Journal of Macroeconomics, Elsevier, vol. 78(C).
    19. Lahiri, Bidisha & Ali, Haider, 2022. "Inspections, informal payments and tax payments by firms," Finance Research Letters, Elsevier, vol. 46(PA).
    20. Shadrack Muthami Mwatu, 2022. "Institutions and export performance: firm level evidence from Kenya," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(4), pages 487-506, December.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijebaa:v:xi:y:2023:i:2:p:3-21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.