Thursday, October 13, 2022
Kim: Blockchain Initiatives For Tax Administration
Younger Ran (Christine) Kim (Cardozo; Google Scholar), Blockchain Initiatives for Tax Administration, 69 UCLA L. Rev. 240 (2022):
A thriving physique of literature discusses numerous authorized points associated to blockchain, however typically it mixes the dialogue about blockchain with cryptocurrency. Nevertheless, blockchain will not be the identical as cryptocurrency. Outlined as a decentralized, immutable, peer-to-leer ledger expertise, blockchain is a newly rising knowledge administration system. The personal sector—together with the monetary business and provide chains—and the general public sector—property data, public well being, voting, and compliance, have all begun to make the most of blockchain. Since extra knowledge is processed remotely, and thus digitally, the evolution of blockchain is gaining stronger momentum.
Whereas scholarship on blockchain is rising, not one of the scholarship has thought of the affect of blockchain on the tax sector. This Article extends the examine of blockchain to tax administration, evaluates the feasibility of incorporating blockchain inside present tax administrations, and offers policymakers with standards to think about and a few really helpful designs for blockchain.
Blockchain can improve the effectivity and transparency of tax administration via its skill to ship dependable, real-time data from many sources to a big viewers. Additional, a well-designed personal consortium blockchain, advanced from the basic public blockchain, might successfully shield taxpayers’ data. Potential areas that blockchain may improve are payroll taxes, withholding taxes, worth added taxes, switch pricing, the sharing of data between federal, state, and native governments in addition to nations.
This Article gives normative concerns for policymakers deliberating blockchain initiatives for tax administration, comparable to timeline, standardization, its integration with different methods, its limitations, and the accompanying laws to control the federal government and the taxpayer’s rights and privateness. These implications might resonate with a broader viewers past tax policymakers.
https://taxprof.typepad.com/taxprof_blog/2022/10/blockchain-initiatives-for-tax-administration.html
