A BLOCKCHAIN-DRIVEN VAT COMPLIANCE MODEL USING HYPERLEDGER FABRIC AND MONTE CARLO SIMULATIONS

Authors

  • Joseph Ndagatsa Mamman Federal University of Technology Minna
  • Muhammad Bashir Abdullahi Federal University of Technology, Minna, Niger State
  • John Kolo Alhassan Federal University of Technology, Minna, Niger State
  • Opeyemi Aderike Abisoye Federal University of Technology, Minna, Niger State
  • Oluwaseun Adeniyi Ojerinde Federal University of Technology, Minna, Niger State

DOI:

https://doi.org/10.33003/fjs-2024-0806-3042

Keywords:

Blockchain Technology, Value Added Tax (VAT), Hyperledger Fabric, Smart Contracts, Tax Compliance, VAT Administration, VAT Compliance Framework, Monte Carlo Simulation, Permissioned Blockchain

Abstract

This paper presents the development and evaluation of a VAT compliance model utilizing Hyperledger Fabric blockchain technology integrated with Monte Carlo simulations. The model aims to address the pervasive issue of VAT non-compliance by providing real-time monitoring and automated compliance checks. By simulating 10,000 VAT-related transactions under various compliance scenarios, the study assesses the model's performance in detecting both compliant and non-compliant transactions based on product registration and VAT rate application. The Monte Carlo simulations generate diverse transaction scenarios, while the blockchain provides a secure, immutable ledger for tracking each transaction's compliance status. The model is tested on a system simulating real-world conditions, focusing on key metrics such as transaction throughput, latency, accuracy, sensitivity, precision, and specificity. The results demonstrate that the model achieves 100% accuracy in identifying non-compliant transactions, with a transaction throughput of 1,200 transactions per second and an average latency of 0.83 milliseconds. This study highlights the potential of blockchain technology to revolutionize VAT administration by reducing non-compliance, enhancing transparency, and streamlining tax enforcement processes.

Author Biographies

Muhammad Bashir Abdullahi, Federal University of Technology, Minna, Niger State

Department of Computer Science, Federal University of Technology, Minna, Nigeria

John Kolo Alhassan, Federal University of Technology, Minna, Niger State

Department of Computer Science, Federal University of Technology, Minna, Nigeria

Opeyemi Aderike Abisoye, Federal University of Technology, Minna, Niger State

Department of Computer Science, Federal University of Technology, Minna, Nigeria

Oluwaseun Adeniyi Ojerinde, Federal University of Technology, Minna, Niger State

Department of Computer Science, Federal University of Technology, Minna, Nigeria

Published

2024-12-31

How to Cite

Mamman, J. N., Abdullahi, M. B., Alhassan, J. K., Abisoye, O. A., & Ojerinde, O. A. (2024). A BLOCKCHAIN-DRIVEN VAT COMPLIANCE MODEL USING HYPERLEDGER FABRIC AND MONTE CARLO SIMULATIONS. FUDMA JOURNAL OF SCIENCES, 8(6), 429 - 437. https://doi.org/10.33003/fjs-2024-0806-3042