ON THE PATH TO DIGITAL TAXATION: CHALLENGES AND OPPORTUNITIES IN THE AGE OF CRYPTOCURRENCIES
Keywords:
Keywords: digital taxation, cryptocurrencies, tax policy, tax compliance, regulatory landscape, blockchain technology, cross-border taxation, tax innovation.Abstract
Abstract: This article examines the challenges and opportunities presented by the proliferation of cryptocurrencies in the context of digital taxation. As cryptocurrencies gain widespread adoption and recognition as legitimate financial instruments, tax authorities face the daunting task of developing effective tax policies to regulate and capture taxable transactions in the digital realm. This paper explores the complexities surrounding the taxation of cryptocurrencies, including issues such as valuation, classification, and cross-border taxation. Additionally, it discusses the evolving regulatory landscape and the role of international cooperation in addressing tax evasion and compliance challenges posed by cryptocurrencies. Furthermore, the article highlights opportunities for innovation and efficiency in tax administration through the adoption of blockchain technology and digital tax reporting mechanisms. By shedding light on the multifaceted nature of digital taxation in the age of cryptocurrencies, this study aims to inform policymakers, tax authorities, and stakeholders about the challenges and opportunities on the path to digital taxation.
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