Tax evasion is a major microeconomic problem affecting society. Untaxed money, known as black money, reduces the government’s revenue and leads to higher tax rates for honest taxpayers. This financial crime has profound social consequences, and although a cashless society can reduce tax evasion through better traceability of financial transactions, it does not eliminate it. Loopholes in the tax system still allow individuals to manipulate data and hide their activities.

In Sweden, undeclared work payment is not widespread because of its strict rules for Tax compliance. But some sectors still practice undeclared work payment. Studies have shown that cost-saving benefits and the social security system are the main reasons for misrepresenting wage levels. This paper also explores the socio-economic, cultural, and psychological aspects of the motivation behind undeclared work payment. 

Based on thematic analysis and insights from gatekeepers, the finding provides comprehensive insight into tax evasion strategies in the Swedish labor market. In particular, the research highlighted tax evasion techniques are possible in different types of job categories and the payment methods they use.