May 31, 2018
In the past year 2017, we can clearly see the influence of cryptocurrency. So far, people have been able to know the technology behind it, blockchain. Not stop there, people increasingly rush to find out and apply blockchain technology development more. Especially in the monetary field, not only in cryptocurrency, the blockchain technology development also demonstrates its potential in the fintech field, including tax and accounting.
The bookkeeping business is probably going to encounter the most interruption as the aftereffect of blockchain technology development since it on a very basic level changes the way exchanges are made and recorded. Be that as it may, blockchain, on the grounds that it evacuates the requirement for an outsider or agent, has energizing potential applications outside of monetary exchanges.
Indeed, Steve Mendelsohn, Senior Vice President, Global Tax and Accounting Market Development at Thomson Reuters says there is even a case to be made for blockchain as the ultimate digital disruptor in the global taxation landscape. Michael Meisler, Partner & Global Blockchain Tax Leader at EY in the US told Steve that blockchain “has the capability to create a fundamental change in how we tax, because it creates a world where every single leg of a transaction is tracked in an immutable record, which makes audit detection risk loom even larger”.
Steve said this point has not been lost on government tax authorities, many of whom are actively experimenting with blockchain-based solutions for auditing and filing taxes. He said Luxembourg has been one of the most progressive countries on this front, investing heavily in a technology company called LuxTrust, which has just created a blockchain identity platform that will be used throughout the country in everything from tax filing to regulatory enforcement. China is also reportedly planning to incorporate blockchain into its tax collection process within the next 5 years. (1)
Blockchain appropriated record innovation will make certain duty and bookkeeping rehearses and even some expert administrations out of date. Likewise, the exchange in the blockchain is confirmed, so it takes out the requirement for the two gatherings to enter the exchange into their own records. Then again, it might prompt a triple-passage framework where exchanges are gone into the two gatherings’ records and into the blockchain.
Security may likewise be less demanding to oversee utilizing blockchain technology development, since it makes financials everything except impenetrable to hacks. This is because of the outstandingly solid security gave by blockchain encryption and the way that you can’t just hack into the blockchain and make undetected, unapproved changes.
Above all, blockchain have 2 core characteristics give it significant potential for use in taxation:
#1 Transparent real-time information
Organizations could see not so much cost but rather more proficiency, as blockchain technology development could computerize the manual preparing of finance impose, business assess and any exchange based charges. Rather than self-detailing, each and every exchange is recorded and paid instantly, guaranteeing right around 100% consistence.
Blockchain technology development could likewise help with checking exchange evaluating. This innovation would make it less demanding to esteem the “equitable cost” between an eager purchaser and willing merchant to guarantee all related gathering exchanges are esteemed fittingly. It would help make valuations all the more a science than a workmanship, and keep these valuations supportable and up and coming.
#2 Increased security and fraud protection
With Blockchain joined into the assessment gathering process, review recognition happens consequently and immediately. The computerized record can’t be tempered with once the information is entered. Any progressions are completely straightforward to all recognized system clients, accordingly restricting the potential for mistakes and fraud.
Tax authorities would also benefit from that. The transparency inherent to Blockchain would change how tax audits are performed. Some governments, such as Luxembourg, have already started to experiment with blockchain technology development-based solutions for tax filings and audits. (2)
Infinity Blockchain Labs (IBL) is a visionary R&D company engaged in intermediary and RegTech services employing blockchain technology. We focus on forming alliances with established businesses and regulatory institutions across various industries, as well as providing collaborative incubation for early stage blockchain projects. We aspire to empower Vietnam to become a global leader in blockchain.
IBL aspires to empower Vietnam to become a global leader in blockchain technology development and therefore are committed to sharing information to nurture a passionate, educated blockchain community. One of the ways we maintain our role as ecosystem pioneer is by helping create educated blockchain enthusiasts. We are committed to sharing information and resources to help Vietnam become a blockchain hub through conferences, courses, contests, alliances, workshops, speaking engagements and incubations. Information regarding topics like hard forks helps people become more familiar with key blockchain concepts and thus able to adopt the technology.
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