The Implementation of Blockchain in Taxation: Efficiency, Transparency, and Reducing Tax Avoidance
Rizky Ridwan1, Dede Riswandi2, and Fithri Sri Mulyani3

University Cipasung Tasikmalaya
Jl. Borolong, Ciawi Jl. Raya Singaparna, RT.03/RW.02, Cilampunghilir, Kec. Padakembang, Kabupaten Tasikmalaya, Jawa Barat 46466
Faculty of economic
1,2 Accounting, Universitas Cipasung Tasikmalaya, Tasikmalaya, Indonesia
3 Actuarial, Universitas Cipasung Tasikmalaya, Tasikmalaya, Indonesia

rizkyridwan[at]uncip.ac.id

Abstract

The implementation of blockchain technology in the tax system offers significant potential to enhance efficiency, transparency, and security. In this regard, the Directorate General of Taxes (DJP) can utilise a permitted private blockchain, enabling full control over the network and trusted participation. By leveraging blockchain, the DJP can ensure data confidentiality, security, and the prevention of unauthorised access. Moreover, this technology helps address issues in conventional tax systems, such as tax avoidance and fraudulent tax invoices. The use of blockchain can also improve tax administration efficiency and foster international cooperation in combating cross-border tax avoidance. Proper legal regulations and collaboration between the government and private sector are crucial for successful implementation. While challenges need to be overcome, the use of blockchain in taxation holds the potential to enhance the overall tax system, resulting in increased tax revenues and stronger public finances.

Keywords: Blockchain,Taxavoidance

Topic: Financial Management and Accounting