Blockchain – EY Future of Tax

blockchain maybe the most important invention since the internet and the potential for tax is huge essentially a blockchain is a digital ledger of verify transactions shared among a distributed network of computers blockchain allows us to transfer data currency and other assets in an efficient trustworthy matter among parties that may not naturally trust each other in addition the ability to implement smart contracts can automate the process of payments transfer of assets and recording of these transactions in a way that can revolutionize everything that we're doing and has major impacts perhaps often we think of blockchain is something for the far distant future what changed it operational already across the globe and in fact there are many more law chains in the proof-of-concept phase for example we're working with clients in the shipping industry and thinking through how blockchain might revolutionize what they do we can look to a future in which a ship enters into a new territory and just by tracking its GPS system we can automate the process of pain of closing out payment of insurance marine and shipping costs entry Duty fees other tax payments can be calculated automatically the savings could be tremendous and the speed and accuracy in which these transactions happen could be something unlike anything we've seen before digital is fundamentally going to change the relationship between tax administration's financial intermediaries and also tax payers what chain is a significant component to that and in particular the components of blockchain that involve encrypted identity and transparency of trans transactions data are fundamental elements to a new type of relationship between tax administration's and tax payers transparency will become automatic the process of gathering information sharing it with governments and tax authorities and even automating the payments could drastically change the way that we compute tax pay tax and work our way through audits in the future as with any transformational technology we do reach a tipping point at some point and once we pass that point adoption happens very rapidly so we need to be ready for that this is the future of tax you

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