The Implementation of Blockchain in Taxation: Efficiency, Transparency, and Reducing Tax Avoidance

Rizky Ridwan (), Dede Riswandi and Fithri Sri Mulyani
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Rizky Ridwan: Universitas Cipasung
Dede Riswandi: Universitas Cipasung
Fithri Sri Mulyani: Universitas Cipasung

A chapter in Proceedings of the 8th Global Conference on Business, Management, and Entrepreneurship (GCBME 2023), 2024, pp 234-243 from Springer

Abstract: Abstract The implementation of blockchain technology in the tax system has significant potential to enhance efficiency, transparency, and security. In this regard, the Directorate General of Taxes (DJP) can utilize a licensed private blockchain, which allows full control over the network and trusted participation. By harnessing blockchain, the DJP can ensure data confidentiality, security, and prevent unauthorized access. The implementation of blockchain technology in the tax system has garnered significant attention in relevant literature. The research methodology employed in this study is a literature review analysis. In the process of literature analysis, we systematically explored and evaluated various sources, including scholarly articles, research reports, and official publications from tax authorities and related organizations. The primary objective of this literature analysis was to identify and summarize key findings that support the claims outlined in the previous statement. This literature review research has revealed that blockchain technology holds substantial potential for improving efficiency, transparency, and security within tax systems. Several sources in the literature highlight the benefits of utilizing blockchain in the context of taxation, such as cost reduction in tax administration, enhanced accuracy, and prevention of tax fraud. Moreover, we found that blockchain technology has been successfully employed in various tax initiatives across different countries. In conclusion, based on this literature review research, we can infer that the use of blockchain in taxation has the potential to significantly enhance the overall tax system, assuming that existing challenges can be overcome through collaborative efforts and appropriate regulations.

Keywords: Blockchain; Tax Avoidance (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-443-3_33

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