Blockchain technology integration in tax policy: Navigating challenges and unlocking opportunities for improving the taxation of Ghana's digital economy

Abstract

In an era marked by a profound digital transformation of economies worldwide, Ghana stands as a vivid example of a nation at the crossroads of taxation evolution. The country's tax policies are undergoing a significant shift to adapt to the burgeoning digital economy, with a keen focus on capturing and regulating the ever-expanding revenue streams generated through online enterprises. This research explored the potential of integrating blockchain technology with tax policy. Unstructured and semi-structured interview questions were designed to obtain insight into the problem. A survey was conducted to obtain views on the variables that explained the potential of integrating blockchain technology with tax policy to enhance the effectiveness of taxing online enterprises in Ghana. The study used correlation analysis to confirm propositions derived from preliminary interview and the review of literature. It was found that while blockchain offers significant advantages in bridging the gap for effective online taxation in Ghana, there are challenges which include institutional and regulatory conformity issues, technical integration and alignment incompatibility, and inadequate stakeholder engagement. This result may be useful in the design of tax online tax policy in Ghana and other jurisdictions with similar socio-economic environment.

Keywords

• Blockchain technology
• Tax base
• Tax policy
• E-commerce
• Digital economy
• Ghana