This paper investigates the effect of electronic payments technology on firms’ tax compliance in a large developing … use of electronic forms of payments. Using administrative data on firms’ tax returns and variation in the strength of the … demonetization shock across local areas, we find that greater use of electronic payments leads to firms reporting more sales to the tax …

forms of payments. Using administrative data on firms' tax returns and variation in the strength of the demonetization shock … across local areas, we find that greater use of electronic payments leads to firms reporting more sales to the tax … authorities. Our estimates imply that the shift to electronic payments increased reported sales by 5% despite demonetization …