Blockchain and Tax Administration: A Critical Assessment

50 Australian Tax Review 180-192 (2021)

18 Pages Posted: 20 Apr 2022 Last revised: 8 Jul 2022

See all articles by Eliza Mik

Eliza Mik

The Chinese University of Hong Kong (CUHK) - Faculty of Law; TILT; Melbourne Law School

Noam Noked

The Chinese University of Hong Kong (CUHK) - Faculty of Law

Date Written: July 21, 2021

Abstract

Recent publications argue that blockchains could substantially improve tax administration. This article critically evaluates these claims and examines several proposed use cases. It argues that many of the problems that blockchains purportedly solve exist off-chain, in the real world, and cannot be addressed by a blockchain. Blockchains can facilitate the storage and sharing of tax information. They cannot, however, streamline reporting requirements or enhance cooperation between tax authorities. This article also claims that the main benefit from several use cases derives from digitalization in general, not from the deployment of any specific type of database. It remains to be determined whether blockchains are in fact superior to other digitalized systems that perform comparable functions in tax administration.

Keywords: Blockchain, Tax Administration, VAT, Digitalization, Tax Reporting, DLT

JEL Classification: K34, K42

Suggested Citation

Mik, Eliza and Noked, Noam, Blockchain and Tax Administration: A Critical Assessment (July 21, 2021). 50 Australian Tax Review 180-192 (2021), Available at SSRN: https://ssrn.com/abstract=4077489 or http://dx.doi.org/10.2139/ssrn.4077489

Eliza Mik

The Chinese University of Hong Kong (CUHK) - Faculty of Law ( email )

6/F, Lee Shau Kee Building
Shatin, New Territories
Kowloon, Sha Tin
Hong Kong

TILT ( email )

P.O.Box 90153
Prof. Cobbenhagenlaan 221
Tilburg, 5037
Netherlands

Melbourne Law School ( email )

185 Pelham Street
Melbourne, VIC 3010
Australia

Noam Noked (Contact Author)

The Chinese University of Hong Kong (CUHK) - Faculty of Law ( email )

6/F, Lee Shau Kee Building
Shatin, New Territories
Hong Kong, Sha Tin
Hong Kong

HOME PAGE: http://www.law.cuhk.edu.hk/app/people/prof-noam-noked/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
496
Abstract Views
1,296
Rank
107,837
PlumX Metrics