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Application of blockchain in taxation


According to an old saying, only two things in this world are certain, death and taxes.

The point is that death usually occurs unexpectedly while taxes are levied continuously; At least until recently, this has been the routine. Recently, a company has identified a good opportunity to provide services in the form of implementing a system for tracking and collecting immediate taxes using blockchain technology.

Application of blockchain in taxation

Application of blockchain in taxation

Sage Communications has proposed the use of blockchain technology to help governments increase the efficiency and transparency of proposed tax processes.

Taxes are now accumulated during the activities of economic actors and then leased to local or state governments. All transactions are evaluated and processed by the government and eventually reconciled. Any inconsistencies and differences will be audited as this audit system will require significant human and financial resources and in the end may not have a good result.

By building a blockchain-based system, Sage Communications seeks to be able to identify taxes at the moment of occurrence, collect them from the economic operator and deposit them in the government account, and almost eliminate the need for tax audits.

Application of blockchain in taxation

Application of blockchain in taxation

It remains to be seen whether such solutions will be feasible for governments to use. And, of course, the fear that institutions and organizations have of blockchain and cryptocurrencies makes it somewhat challenging to do so. However, this solution seems to have the capacity to adapt to the legal obstacles and challenges to be implemented.

Source : Iran Blockchaink Laboratory

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