Blockchain: Accounting Transparency and Tax Challenges - A 2007–2024 International Comparative Study with a Simulation-Based Proof of Concept (MAFI)-

Abstract

This thesis examines the role of blockchain technology in enhancing accounting transparency and addressing tax-related challenges through a dual approach that combines theoretical foundations with applied analysis. An international comparative study was conducted on three multinational companies—IBM (United States), Siemens (Germany), and Fujitsu (Japan)—over the period from 2007 to 2024. The analysis focused on key financial indicators, including earnings quality, accruals ratios, and the earnings–cash flow gap, in order to assess the impact of blockchain adoption on accounting transparency and the reliability of financial reporting. In addition to the comparative study, this research presents a simulation-based proof of concept named MAFI (https://mafibc.netlify.app/) , developed by the researcher. The platform demonstrates how blockchain can automate VAT deduction, strengthen tax compliance, and address key challenges such as fake invoicing, tax evasion, and administrative corruption. It also simulates double- and triple-entry accounting logic within a permissioned blockchain framework, ensuring transaction traceability and integrity. The findings reveal a positive relationship between blockchain implementation and improvements in accounting transparency, tax compliance, and oversight efficiency, especially in combating administrative fraud. Furthermore, the study emphasizes the limitations of absolute transparency in accounting and taxation, advocating for a balanced approach based on the ""Need-to-Know"" principle, which promotes purposeful disclosure without compromising confidentiality or strategic data sensitivity.