Use of Blockchain Technology in Taxation
Chapter from the book:
Yücel,
R.
&
Ayyıldız,
Y.
&
Er,
H.
(eds.)
2023.
Innovations that Digitalization Brings to the Finance Sector.
Synopsis
Today, the rapid development of the digital economy is pushing the limits of traditional tax systems with the increasing use of online platforms, crypto assets, and digital services. Blockchain technology (BT) applications have the potential to overcome these complexities with their decentralized and transparent nature. In the study, in the rapidly developing world of increasingly digital economies, blockchain technology applications' potential to solve existing difficulties in taxation is discussed. In this context, the use of blockchain technology applications in taxation of rapidly digitalizing economies, the advantages, and application areas are explained in detail.
It emphasized how blockchain technology can solve various taxation issues such as tracking and automating tax declarations and payments and increasing the reliability of declaration processes. The potential of blockchain technology in the taxation of increasingly digital economies and how this technology can benefit tax authorities, companies, and individuals are discussed. Additionally, it has been tried to show how blockchain technology can effectively combat problems such as tax evasion and tax fraud. The rapidly changing nature of the digital economy can also pose challenges in terms of the flexibility and speed required for governments and regulatory bodies to monitor and harmoniously integrate this technology. In the study, some difficulties regarding the use of blockchain technology in the field of taxation are also mentioned.
As the result of the study, it has been determined that; blockchain technology should generally start to be used in the field of taxation, but due to many difficulties and inadequacies in implementation, this technology needs to be developed for a while, and applications in the field of taxation may become widespread in the coming years, the idea is dominant. It has been concluded that many studies must be carried out at both national and global levels and legal regulations must be put into effect as soon as possible for this technology, understood to be still in the development stage, to become widespread in the field of taxation.