The Role of Moral Considerations in Blockchain Technology and Its Impact on Tax Compliance: A Literature Review

I Gusti Putu Eka Rustiana Dewi

doi:10.55606/jimek.v5i1.6264

Authors

I Gusti Putu Eka Rustiana Dewi Universitas Mahasaraswati Denpasar

DOI:

https://doi.org/10.55606/jimek.v5i1.6264

Keywords:

Blockchain Technology, Ethics, Moral Consideration, Tax Compliance

Abstract

This study of the literature examines the interaction between blockchain technology and moral considerations, with a particular emphasis on its impact on tax compliance. Blockchain's incorporation into tax systems creates both new ethical options and concerns as it continues to transform data security, transparency, and traceability. This paper explores the ethical dimensions of tax compliance within digital environments through a qualitative literature review. The study reviews previous research on the relationship between taxpayers' moral ideals, ethical decision-making, and perceptions of tax justice and the intrinsic properties of blockchain, such as immutability and decentralization. According to the findings, moral factors—such as social norms, individual ethical frameworks, and trust in institutions—have a significant impact on how taxpayers behave in blockchain-based settings. The review also emphasizes how blockchain can improve voluntary tax compliance by increasing transparency, but it can also have drawbacks if moral considerations are ignored. This study provides a conceptual framework for researchers and policymakers who want to create tax systems that are both ethically sound and technologically sophisticated by combining insights from interdisciplinary studies.

References

Adewunmi Adelekan, O., Adisa, O., Ilugbusi, B. S., Obi, O. C., Awonuga, K. F., Asuzu, O. F., & Ndubuisi, N. L. (2024). Evolving tax compliance in the digital era: A comparative analysis of AI-driven models and blockchain technology in U.S. tax administration. Computer Science & IT Research Journal, 5(2), 311–335.

Ali, M. (2024). Legal implications of blockchain technology for tax compliance and financial regulation. Financial and Accounting Research Journal, 6(2), 1–15.

Alm, J. (2019). What motivates tax compliance? Journal of Economic Surveys, 33(2), 353–388.

Bandura, A. (1999). Moral disengagement in the perpetration of inhumanities. Personality and Social Psychology Review, 3(3), 193–209.

Davidson, S., Filippi, P., & Potts, J. (2018). Blockchain and the economy: The impact of decentralized technology on business and society. Journal of Business Ethics, 152(2), 1–15.

Dierksmeier, C. (2020). Blockchain and business ethics. Business Ethics: A European Review, 29(3), 1–16.

DLA Piper. (2023). Exploring the ethical implications of digital assets, blockchain technology, and smart contracts in legal practice.

FasterCapital. (2023). Blockchain startup legal compliance: Tax implications for blockchain startups.

Gangl, K., Hofmann, E., & Kirchler, E. (2015). Tax authorities' interaction with taxpayers: A conception of compliance in social dilemmas by power and trust. New Ideas in Psychology, 37, 13–23.

Grym, J., Kolehmainen, N., & Rantala, E. (2024). Cryptocurrency tax evasion is perceived as less morally wrong than traditional tax evasion: A social psychological perspective. Journal of Behavioral Finance.

Kirchler, E. (2007). The economic psychology of tax behaviour. Cambridge University Press.

Kirchler, E., Hoelzl, E., & Wahl, I. (2008). Enforced versus voluntary tax compliance: The “slippery slope” framework. Journal of Economic Psychology, 29(2), 210–225.

Legal Service India. (2023). The role of blockchain technology in modernizing tax collection.

Leung, C. W., & Wu, W. C. (2024). Blockchain adoption and tax enforcement: Evidence from accounting restatements. Journal of Accounting and Public Policy, 43(2), 106056.

Liu, Y., Lu, Q., Zhu, L., Paik, H.-Y., & Staples, M. (2021). A systematic literature review on blockchain governance. arXiv. https://arxiv.org/abs/2103.14000

Misra, A. (2024). Tax policy handbook for crypto assets. arXiv. https://arxiv.org/abs/2402.00001

Nembe, J. K., Atadoga, J. O., Adelakun, B. O., Odeyemi, O., & Oguejiofor, B. B. (2022). Legal implications of blockchain technology for tax compliance and financial regulation. Finance & Accounting Research Journal, 6(2), 1–12.

PLoS One. (2022). A blockchain-based certifiable anonymous E-taxing protocol. PLoS One, 17(4), e0266729. https://doi.org/10.1371/journal.pone.0266729

Reijers, W., & Coeckelbergh, M. (2021). Towards trustworthy blockchains: Normative reflections on blockchain-enabled virtual institutions. Ethics and Information Technology, 23(4), 1–15.

Ridwan, R., Riswandi, D., & Mulyani, F. S. (2024). The implementation of blockchain in taxation: Efficiency, transparency, and reducing tax avoidance. In Proceedings of the 8th Global Conference on Business, Management, and Entrepreneurship (GCBME 2023) (pp. 234–243).

Rogers, H., & Picard, R. G. (2020). Blockchain and the future of tax regulation. Journal of Tax Administration, 6(1), 30–50.

Sedlmeir, J., et al. (2022). Anti-money laundering (AML) and know your customer (KYC) compliance in blockchain-based transactions. SN Social Sciences, 2(1), 1–15.

Stiehle, F., & Weber, I. (2022). Blockchain for business process enactment: A taxonomy and systematic literature review. arXiv. https://arxiv.org/abs/2201.00062

Tapscott, D., & Tapscott, A. (2016). Blockchain revolution: How the technology behind bitcoin is changing money, business, and the world. Penguin.

Winkelbauer, L. (2023). Regulatory considerations in blockchain governance. Journal of Blockchain Research, 5(1), 45–60.

Xu, X., Weber, I., & Staples, M. (2017). Blockchain technology in the banking industry: A systematic literature review. arXiv. https://arxiv.org/abs/1709.02489