Integration of Blockchain Accounting Systems and Mitigation of Tax Evasion in Nigeria Multinational Companies
Keywords:
Accounting Systems, Blockchain, Integration, Tax EvasionAbstract
This study investigated the effectiveness of integrating blockchain accounting systems as a means to mitigate tax evasion within Nigerian multinational corporations (MNCs). Drawing on a survey design methodology involving 300 respondents from 10 Nigerian MNCs, the study examined the relationship between blockchain integration and tax evasion reduction, as well as the challenges associated with blockchain adoption in this context. Simple regression analysis was used to evaluate the null hypothesis at a 0.05 significance level. The study adopted the diffusion of innovation theory to better understand how innovations are adopted and implemented within organizations. Findings revealed a significant positive correlation between blockchain integration and tax evasion mitigation, highlighting the potential of blockchain technology to enhance transparency and accountability in financial transactions. However, challenges such as regulatory uncertainties, technological barriers, and organizational resistance hinder widespread blockchain adoption within Nigerian MNCs. Recommendations include promoting organizational readiness, engaging with tax authorities, conducting pilot projects, and leveraging international standards. By overcoming these challenges and adopting the proposed recommendations, Nigerian MNCs can effectively combat tax evasion, foster compliance with tax regulations, and contribute to sustainable economic development in Nigeria.
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