Evaluation of the use of blockchain technology in taxation

Blockchain is an important technology on the world technology stage with the potential to fundamentally transform institutions and markets on a global scale. Blockchain technology ensures trust in transactions, verifies the identity of assets, and makes assets unique and traceable. Blockchain technology has found a wide range of applications from cryptocurrencies to supply chains and from accounting-auditing to tax systems. In particular, its integration into tax systems holds significant importance for governments. The aim of this study is to evaluate the use of blockchain technology in the field of taxation. The subject is of limited use in the context of tax types. In addition, examples from various countries are given for a better understanding of the subject. Subsequently, inferences have been made regarding the potential areas of use for blockchain technology in taxation in Türkiye. In the study, the strengths, weaknesses, opportunities, and threats of blockchain technology in the field of taxation have been identified using the SWOT analysis method. In particular, the idea of applying blockchain technology in taxation has brought many discussions on the subject. Although it has not yet been fully implemented in any country, the number of countries that will integrate this technology into their tax systems in the near future could be considerable. Despite all these, there may be difficulties in the integration of blockchain technology due to the fact that it is very difficult to achieve unity in international legislation on taxation. In this context, in order to prevent many potential issues related to blockchain technology, institutions in Türkiye and many other countries should be equipped with comprehensive knowledge and expertise on this technology. In addition, the development of a public blockchain infrastructure and the legalisation of the technological structure will make a significant contribution to digital transformation in taxation.