How Blockchain can be Used in Tax Compliance

The three main areas where blockchain could be used in compliance.

Video Overview:

In this World Finance video, David Deputy, director of strategic development and emerging markets at Vertex, highlights the three main areas where blockchain could be used.

  • The first area is the blockchain use in financial instruments, physical interest-earning assets, and cash flowing assets. Here, they’re being put onto the blockchain as a system of record. And, as with any asset transfer, there is tax involved.
  • The second use of blockchain is for identifying and understanding the taxpayer. In this way, it is a great data management system.
  • The third use the potential to move the actual tax payment at a very granular level. This would allow for immediate compliance with no audits, no returns, certified specifically through use of the blockchain.
  • Deputy explores what blockchain could do to alleviate VAT fraud, what he sees for the future of blockchain technology as it relates to tax, and the opportunity it presents for a seamless system between government and organizations.

World Finance + Vertex

In March 2019, tax professionals, solution experts, and our very own customers met in Munich for Vertex Exchange Europe. World Finance interviewed half a dozen delegates for an update on Europe’s tax compliance challenges and technological advancements.