Blockchain Technology and Reducing of Tax Evasion

The study aims to reduce Tax Evasion by using Blockchain technology; and in order to achieve this aim we have built a model by using Blockchain Technology and then we have evaluated the ability of this model to reduce Tax Evasion, 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 divided into two sections: The first one: is about evasion methods from Income Tax, The second: relates to evasion methods from Sales Tax; so 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 department and the Directorate of Jordanian combating tax by using the questionnaire for model evaluation, where the personal interview was also approved to collect some important data for the study that was not included in the questionnaire. The study concludes 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. As well, the study recommends presenting the study model to the Income and Sales Tax Department to study the possibility of adopting and applying it. In addition, to help solving the problem of tax evasion, whether at the income tax level or at the sales tax level.