Secure Digital Transactions
Blockchain is a distributed ledger or decentralized database that allows anything of value to be tracked and traded securely, transparently and without risk of tampering – ideal for an entire tax system. It can deliver real-time, reliable information to a wide group of people, and create a system where both taxpayers and tax authorities have equal confidence in the accuracy of the data collected. It makes it easier for people to pay tax and for governments to narrow the tax gap. Its unique features in distribution, permission, security, trust and automation make it distinct from traditional databases.
The key feature of blockchain is that it enables secure digital transactions of any kind. Data in a blockchain can be written at any time, but it can never be changed or erased. Because the history of every transaction is linked and permanent, business transactions will be more secure, government will be more transparent, and citizens will be able to collaborate and do business over a protected network. Digital records of assets owned are continuously updated. Rather than relying on a central administrator like a traditional database, a distributed ledger has a network of replicated databases, synchronized via the internet and visible to anyone within the network.
Blockchain narrows the tax gap and restores trust in the tax system. The attributes of blockchain, such as providing ownership, traceability and transparency of transactions, match priorities for the modern tax system.
TRANSPARENCY | Blockchain provides ownership, traceability and transparency of transactions.
CONTROL | Access to permissioned is restricted to identified users.
SECURITY | The digital ledger cannot be altered or tampered with once the data is entered. Fraud is less likely and easier to spot.
REAL-TIME INFORMATION | When information is updated, it’s updated for everyone in the network at the same time.
to improve taxation
We believe blockchain will have a significant impact on tax. It’s part of Cultivating a Tax Paying Culture to enhance a country’s middle-income status. Blockchain narrows the tax gap and restores trust in the tax system. The attributes of blockchain, such as providing ownership, traceability and transparency of transactions, match priorities for the modern tax system.