Can Blockchain Technology Resolve Tax Avoidance Issues Associated with Multinational Companies in Ireland?

The low corporate tax rate in Ireland has attracted a multitude of large multinational corporations since the 1980’s. Government policies have been catered towards these corporations due to the influx of funding and investment that they contribute to the Irish economy. Yet in recent years, these large corporations have begun to exploit these policies and the taxation system by using targeted tax avoidance mechanisms. Due to this, corporations have been able to pay little to no tax which has led to the degradation of societal resources. These effects are unsustainable for the Irish economy in the long run. Therefore, this study aims to determine if newer technology such as blockchain, which has been proven to mitigate similar instances in other countries, could resolve the aforementioned issues in Ireland. Building on existing research, this study asks: can blockchain technology resolve tax avoidance issues associated with multinational corporations in Ireland? Based on a review of current literature, many believe that it can. Hence a practical proof of concept was experimented with using a blockchain simulation. The simulation was supported by expert opinion from senior members in government and multinational companies that were acquired through interviews. The results indicate that the use of blockchain technologies would resolve tax avoidance issues associated with multinational companies by providing more transparency and oversight. The implementation would be cost effective, more secure, and is supported by a strong technical Irish infrastructure. On this basis, it is recommended that future blockchain platforms be implemented into governing structures. These findings are considered within the context of debate about how blockchains can be used in systems of E-governance and reformation. Future research is needed to gather a larger consensus and showcase the potentials of a blockchain with the use of complementary technologies