USING BLOCKCHAIN TECHNOLOGY IN THE TAX SYSTEM

This paper explores the potential application of blockchain technology within the tax system, aimed at enhancing efficiency, bolstering security, and increasing transparency in tax collection and administration. By employing a decentralized ledger system, blockchain technology promises to streamline tax processes, minimize fraud and evasion, and automate compliance through smart contracts. This article delves into the mechanisms through which blockchain could be integrated into existing tax frameworks, evaluates the benefits and challenges of such an integration, and envisages the future of taxation in light of these technological advancements. Given the global reach of taxation policies and the universal need for more robust tax collection mechanisms, the study emphasizes the significance of international collaboration in adopting blockchain technology across different jurisdictions. The findings suggest that while the transition to a blockchain-based tax system presents notable hurdles, including technological infrastructure, legal frameworks, and privacy concerns, the long-term benefits could fundamentally transform tax administration worldwide.