Blockchain Technology and Reducing Tax Evasion

Abstract

The study aimed to reduce tax evasion by using Blockchain technology. In order to achieve this aim, a model by using Blockchain Technology was built and then the ability of this model to reduce tax evasion was evaluated, to keep up with the tremendous technological developments, and as a modest attempt in presenting a model, that solve an existing problem which is tax evasion in accordance with many methods, where tax evasion is divided into two sections: The first one is about evasion methods from income tax. The second relates to evasion methods from sales tax. To achieve the goal of the study, the descriptive analytical method was used, where the form was built in its theoretical version. The Preliminary data was collected from auditors and heads of departments who are in the centers, branches, tax departments and the Directorate of Jordanian Combating Tax by using a questionnaire for model evaluation. Also, personal interview was also approved to collect some important data for the study that was not included in the questionnaire. The study concluded that a model can be built by using the Blockchain Technology, and that this model leads to reduce tax evasion of income and sales taxes. In addition, the study recommended presenting the study model to the Income and Sales Tax Department to study the possibility of adopting and applying it to help solving the problem of tax evasion, whether at the income tax level or at the sales tax level.