Enhancing Tax Transparency and Justice through the Integration of Blockchain and Artificial Intelligence in Smart Tax Systems

Document Type : Original Article

Authors

1 ph.D student at semnan university

2 economics department of semnan university

Abstract

Traditional tax systems face persistent challenges such as tax evasion, lack of transparency, and inefficiencies in revenue collection processes. This study proposes an innovative framework, named TAF (Transparency, Accountability, Fairness), which integrates blockchain and artificial intelligence technologies to facilitate the digital transformation of Iran’s tax system. Drawing on successful global experiences—such as those of Estonia and Singapore—and domestic case studies like the e-invoice implementation plan, the research investigates the effectiveness of advanced technologies in enhancing transparency and tax equity. The proposed framework is structured across three technical layers: decentralized transaction recording using blockchain, anomaly detection through AI algorithms, and an integrated user platform for taxpayers and tax authorities. An additional governance layer supports institutional alignment. Findings suggest that implementing the TAF model could reduce tax evasion by up to 35% within three years and shorten tax declaration processing time by 70%. A case study in Tehran province also showed an 18% increase in tax revenue. These results underscore that leveraging emerging technologies is not merely a technical necessity but a vital step toward achieving tax justice and advancing digital governance in Iran.

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References

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Budget and Finance Strategic Research
Volume 6, Issue 3 - Serial Number 23
Autumn Quarterly
September 2025
Pages 11-32

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History

  • Receive Date: 30 April 2025
  • Revise Date: 03 September 2025
  • Accept Date: 27 September 2025

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