Impact of cybersecurity on cross border taxation

The increasing digitalization of global trade and finance has profoundly transformed cross-border taxation systems, introducing new efficiencies but also escalating cybersecurity vulnerabilities. As tax authorities and multinational corporations adopt digital reporting, blockchain-enabled auditing, and AI-based compliance tools, the risk of data breaches, ransomware attacks, and identity theft has multiplied. This paper examines the impact of cybersecurity threats on cross-border taxation, focusing on how cyber incidents undermine fiscal transparency, disrupt revenue collection, and erode taxpayer trust. It explores the interplay between international data exchange mechanisms—such as the OECD’s Common Reporting Standard (CRS)—and the evolving landscape of cyber risks that accompany these digital tax frameworks. The study also highlights how inconsistent cybersecurity standards among jurisdictions create systemic weaknesses that can be exploited by cybercriminals to manipulate tax information or evade compliance. Furthermore, it discusses the emerging role of regulatory cooperation, digital sovereignty, and data protection frameworks like GDPR in safeguarding tax ecosystems. By integrating insights from cyber risk management, digital governance, and international tax law, this research emphasizes the necessity of a unified global cybersecurity approach to ensure tax integrity and equitable revenue administration in an increasingly digital economy. The findings contribute to policy discussions on how technological resilience and secure digital infrastructures can reinforce trust and accountability in cross-border taxation systems.