IIARD International Institute of Academic Research and Development

WORLD JOURNAL OF INNOVATION AND MODERN TECHNOLOGY (WJIMT )

E-ISSN 2504-4766
P-ISSN 2682-5910
VOL. 9 NO. 5 2025
DOI: 10.56201/wjimt.v9.no5.

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Digital Tools, Better Taxes: How AI and Blockchain Are Shaping Modern Tax Systems

Ubesie Madubuko Cyril, Ejike Kenneth Chukwuma, Udeh Amaka Jennifer,

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Abstract

This study explored how digital technologies, specifically Artificial Intelligence (AI) and Blockchain, are changing tax systems around the world. It focuses on how these tools help improve tax compliance, increase transparency, and boost revenue collection. Using a case study method, the research looks at three countries—Mexico, South Africa, and Serbia—that have started using these technologies in their tax systems. The findings show that AI helps in detecting tax fraud, understanding taxpayer behavior, and making tax processes faster. Blockchain, on the other hand, makes tax records more secure and transparent, helping to reduce tax evasion. Even though each country faced some challenges such as cost, lack of trained staff, and the need for legal support, the overall results were positive. The study shows that digital tools can help governments run better tax systems and build trust with citizens. Based on the lessons learned from the case studies, the study recommends that Nigeria adopt these technologies to improve its tax system. This includes training tax officers, building strong technology infrastructure, and creating laws to guide the use of digital tools. The research highlights that when used well, AI and Blockchain can support economic growth and make tax systems more effective and fairer. This study adds to the growing knowledge on digital governance and public finance reform in developing countries.

keywords:

Artificial Intelligence (AI), Blockchain, Tax Compliance, Tax Transparency,

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