Blockchain technology in tax law theory and tax administration

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Abstract

The article is devoted to the problems of improving the tax legislation of Russia at the stage of active implementation of blockchain technology, which is characterized by contradictory trends in the legal regulation of digital technologies. The relevance of the study of application of blockchain in tax relations is due to the need to assess the tax consequences of transactions using digital financial assets, as well as emergence of new directions for improving tax control based on blockchain technology. The purpose of the study is to analyze the provisions of Russian and foreign tax legislation, as well as doctrinal sources on improving legal regulation of tax relations in regard to blockchain technology. The study shows efficacy of the blockchain analysis for the purposes of tax and legal regulation carried out by developing concepts related to applying such technological solution as a tool in conducting cryptocurrency transactions. The theoretical significance of the study lies in the author’s definition of the concept of blockchain technology for tax purposes, as well as in proving the value of legal regulation of tax relations applying blockchain. The practical implication is connected with voicing the need to develop legal regulation of applying blockchain technology when creating a system of transactional (automatic) taxation and levying the so-called “smart taxes” while fulfilling tax obligations in the context of introducing a goods traceability mechanism. This will also contribute to minimizing tax reporting. The research methodology are general and private scientific methods of knowledge: formal-legal, analysis, comparative-legal, and forecasting and modeling. The last two are often applied in tax law in light of digitalization and globalization.

About the authors

Olga I. Lyutova

National Research University Higher School of Economics (NRU HSE)

Author for correspondence.
Email: olyutova@hse.ru
ORCID iD: 0000-0002-6603-8859

Candidate of Legal Sciences, leading researcher at the Institute of State and Municipal Administration

20 Myasnitskaya str., Moscow, 101000, Russian Federation

Irina D. Fialkovskaya

National Research Nizhny Novgorod State University named after N.I. Lobachevsky

Email: i.fialk@yandex.ru

Candidate of Legal Sciences, Associate Professor of the Department of Administrative and Financial Law

23 Gagarina pr., Nizhny Novgorod, 603022, Russian Federation

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Copyright (c) 2021 Lyutova O.I., Fialkovskaya I.D.

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