Blockchain’s transparency will make tax evasion a lot harder
It has been estimated, that money laundering steals up to 5% of global GDP. However, blockchain technology may put to end illegal practices. A computer user can have an access to tax information and bank deposits. But if a transaction is made though the blockchain, its authenticity is confirmed by participants who decrease the risk of falsified documents. Blockchain tech is unrestricted and money transaction is a seamless process. However, industry experts continue to argue about tech’s anonymity.
According to Arnold Spencer, general counsel, tax evasion and concealing of finances is possible with blockchain tech. However, official authorities and public can use it to promote their agenda. It should be note, that a government cannot identify a foreign blockchain user. Thanks to blockchain tech, it’s possible to see when tax heavens are used and who the owner of those assets is. As every transaction is written to the blockchain, it’s a chance to reduce tax evasion. There is some way to go to see the progress, but it’s worth it.