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Can blockchains and linked data advance taxation

Can blockchains and linked data advance taxation
Can blockchains and linked data advance taxation
Permissioned distributed ledgers (permissioned blockchains) supporting smart contracts that automatically adjust accounts and coordinate records among multiple parties, present a valid platform opportunity for establishing a fully digital tax regime. We propose a permissioned blockchain-based system aimed at eliminating some of the losses that tax authorities globally are currently struggling with. These multi-billion flaws manifest themselves as the tax gap, or the inability to collect the full amount that is owed by a given entity to a particular authority. Illegitimate or inefficient tax operations could be prevented with a global suite of smart contracts deployed on top of a consortium distributed ledger with on-chain governance. We also introduce the vision for a VAT Invoice 2.0 modelled as a Linked Data document. A tax reference generated by a smart contract would allow anyone with the right permissions to immediately investigate the entire commercial chain for any taxable item on an ontology-based tax document.
1179-1182
Hoffman, Micha R.
de48552b-3c83-41f1-8ba6-d472d8ab1513
Hoffman, Micha R.
de48552b-3c83-41f1-8ba6-d472d8ab1513

Hoffman, Micha R. (2018) Can blockchains and linked data advance taxation. Companion of the The Web Conference 2018, Lyon, France. 23 - 27 Apr 2018. pp. 1179-1182 . (doi:10.1145/3184558.3191555).

Record type: Conference or Workshop Item (Paper)

Abstract

Permissioned distributed ledgers (permissioned blockchains) supporting smart contracts that automatically adjust accounts and coordinate records among multiple parties, present a valid platform opportunity for establishing a fully digital tax regime. We propose a permissioned blockchain-based system aimed at eliminating some of the losses that tax authorities globally are currently struggling with. These multi-billion flaws manifest themselves as the tax gap, or the inability to collect the full amount that is owed by a given entity to a particular authority. Illegitimate or inefficient tax operations could be prevented with a global suite of smart contracts deployed on top of a consortium distributed ledger with on-chain governance. We also introduce the vision for a VAT Invoice 2.0 modelled as a Linked Data document. A tax reference generated by a smart contract would allow anyone with the right permissions to immediately investigate the entire commercial chain for any taxable item on an ontology-based tax document.

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More information

Published date: 23 April 2018
Venue - Dates: Companion of the The Web Conference 2018, Lyon, France, 2018-04-23 - 2018-04-27

Identifiers

Local EPrints ID: 481074
URI: http://eprints.soton.ac.uk/id/eprint/481074
PURE UUID: f381c3ad-6129-4d66-9a3f-9869c9d61720

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Date deposited: 15 Aug 2023 16:44
Last modified: 17 Mar 2024 02:57

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Author: Micha R. Hoffman

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