Privacy Preserving Tax Evasion Detection forPost-Quantum Centralized Banking Systems

Abstract

Taxation is a fundamental pillar of the economic sustainability and sovereignty of any nation. Consequently, tax evasion is regarded as a serious criminal offense in many jurisdictions worldwide. Although various techniques have been developed to detect and prevent tax evasion, their adoption is often hindered by privacy, ethical, and legal constraints. To address these challenges, this paper introduces a set of secure and privacy-preserving cryptographic building blocks and integrates them into a novel tax evasion detection protocol. The security of the proposed protocol is formally analyzed and demonstrated through mathematical modeling. Moreover, since the underlying cryptographic primitives are resistant to quantum attacks, the proposed approach remains secure in the post-quantum era. Both theoretical analysis and experimental results validate the efficiency and practicality of the scheme.