In this conceptual framework, the author was having a supposition that without proper POS system the merchant might have an intention to do tax evasion. Therefore, most of the governments in the world are moving toward cashless transaction, as to enable the authority to track the movement of money. Without proper socialization, the merchant would still want to conduct the transaction solely based on cash only. Prior study indicates that tax evasion reasoning is based on: 1) tax fairness perception, 2) taxation knowledge and 3) moral obligation on taxation. Hence, further study is required on the shortcoming between cashless transaction and intention on tax evasion.