With the rapid development of technology, information dissemination has become faster and faster, and everyone's living habits have changed. If we focus on the financial technology, the popularization of non-cash payment methods has gradually improved the people's perception and acceptance of smart technology through the daily consumption behavior of the people.
The feature of non-cash payments is that they can be tracked, as long as there are transactions that must leave a record. This characteristic mitigates the tax evasion situation, and raise the government's tax revenue. Furthermore, it makes the transactions more transparent.
This paper uses 9 OECD countries as the samples, including Australia, Belgium, Germany, Italy, Korea, Mexico, Sweden, Turkey, and the United Kingdom, to verify whether the government can really reduce the amount of tax evasion and increase tax revenue through the popularization of non-cash payment methods.
According to the empirical results, there is a statistically significant positive correlation between non-cash transactions and tax revenue on goods and services, the volume and value are both significant at 1% level. As for the volume of cash transactions and the value of cash transactions, there is no statistically significant impact on tax revenue on goods and services.

Adair, P. (2017). The Non-Observed Economy in the European Union Countries (EU-15): A Comparative Analysis of Estimates. Tax Evasion and the Shadow Economy. doi:10.4337/9781781006740.00014
Agha, A., & Haughton, J. (1996). Designing Vat Systems: Some Efficiency Considerations. The Review of Economics and Statistics, 78(2), 303. doi:10.2307/2109932
Aizenman, J., & Jinjarak, Y. (2005). The Collection Efficiency of the Value Added Tax: Theory and International Evidence. doi:10.3386/w11539
Andrejovská, A., & Puliková, V. (1992). Tax Revenues in the Context of Economic Determinants. Montenegrin Journal of Economics, 14(1), 133-141. doi:10.14254/1800-5845/2018.14-1.10
Bajada, C., & Schneider, F. (2009). Unemployment and the Shadow Economy in the OECD. Revue économique, 60(5), 1033-1067. doi:10.3917/reco.605.1033
Basheer, M. F., Ahmad, A. A., & Hassan, S. G. (2018). Impact of economic and financial factors on tax revenue: Evidence from the Middle East countries. Accounting, 53-60. doi:10.5267/j.ac.2018.8.001
Ebeke, C., & Ehrhart, H. (2013). Tax Revenue Instability in Sub-Saharan Africa: Consequences and Remedies. SSRN Electronic Journal. doi:10.2139/ssrn.2209211
Eilat, Y., & Zinnes, C. (2000). The Evolution of the Shadow Economy in Transition Countries: Consequences for Economic Growth and Donor Assistance. CAER II Discussion Paper No. 83
Eilat, Y., & Zinnes, C. (2002). The Shadow Economy in Transition Countries: Friend or Foe? A Policy Perspective. World Development, 30(7), 1233-1254. doi:10.1016/s0305-750x(02)00036-0
Entela Velaj, & Llambi Prendi (2014). Tax revenue- the determinant factors- the case of Albania. European Scientific Journal September 2014 /SPECIAL/ edition Vol.1 ISSN: 1857 – 7881 (Print), e - ISSN 1857- 7431
Giles, D. E., Werkneh, G. T., & Johnson, B. J. (2001). Asymmetric Responses of the Underground Economy to Tax Changes: Evidence From New Zealand Data. Economic Record, 77(237), 148-159. doi:10.1111/1475-4932.00010
Goolsbee, A., & Zittrain, J. (1999). Evaluating the Costs and Benefits of Taxing Internet Commerce. SSRN Electronic Journal. doi:10.2139/ssrn.175666
Hien, J. (2018). Tax Evasion in Italy. Oxford Scholarship Online. doi:10.1093/oso/9780198796817.003.0004
Immordino, G., & Russo, F. F. (2018). Cashless payments and tax evasion. European Journal of Political Economy, 55, 36-43. doi:10.1016/j.ejpoleco.2017.11.001
Kirchgässner, G. (2011). Tax Morale, Tax Evasion and the Shadow Economy. Handbook on the Shadow Economy. doi:10.4337/9780857930880.00019 Mansour Zarra-Nezhad, Majid Sheikh Ansari, & Mahvash Moradi (2016). Determinants of Tax Revenue: Does Liberalization Boost or Decline It? Journal of Economic Cooperation and Development, 37, 2, 103-126
Medina, L., & Schneider, F. (2018). Shadow Economies Around the World: What Did We Learn Over the Last 20 Years? IMF Working Papers, 18(17), 1. doi:10.5089/9781484338636.001
Robert Listfield, & Fernando Montes-Negret (1994) Modernizing Payment Systems in Emerging Economies. POLICY RESEARCH WORKING PAPER 1336
Samuel Antwi, Atta Mills Fiifi Emire Ebenezer, & Xicang Zhao (2012) Impact of VAT Rate Changes on VAT Revenue in Ghana. International Journal of Social Science Tomorrow Vol. 1 No. 10.
Surajit Malakar, & Ravi Chatterjee (2016). Demonetization in Emerging Markets: Boon or Bane. Kindler Vol. XVI / No. 1&2 / Jan-Jun 2016, Jul-Dec 2016
Vito Tanzi (1980). The underground economy in the United States: Estimates and implications. Moneta e Credito 135(4):427-453
Wang, D. H., Yu, T. H., & Hu, H. (2012). On the asymmetric relationship between the size of the underground economy and the change in effective tax rate in Taiwan. Economics Letters, 117(1), 340-343. doi:10.1016/j.econlet.2012.04.041