In considering the possibilities of Blockchain, Vertex and LAB15 partnered to explore how this technology could disrupt tax with industry leaders. Can you imagine a time when compliance becomes less of a burden instead of constantly trying to keep up? Would it be possible to ensure that your tax dealings are up-to-date and correct at all times? It almost sounds too good to be true.
"Under the current tax system, sometimes not complying seems easier..."
Non-compliance creates a huge problem for both governments and companies: large sums of money are spent on administering and complying with the tax system, yet fraud and errors still result in significant amounts of unremitted taxes. In the EU alone, costs of this failing system were estimated to be €160 billion in 2014, roughly 14% of total VAT government receipts. Ultimately, this places a burden on the taxpayer: either taxes are compensated elsewhere or less public services are offered.
Vertex Inc. is a leading provider of tax technology and services, enabling companies of all sizes to realize the full strategic potential of the tax function. We leveraged Vertex’s tax technology with Blockchain to build a proof-of-concept. Using Blockchain, tax payments can be automated, invoices can be authenticated and fraud can eradicated. Together, we designed a conceptual business model that provides companies with immediate certification of compliance, lowering costs, risk and uncertainty. At the same time, this system would enable governments to receive real-time automated tax payments, reduce costs and eliminate fraud with intelligent, standardised tax compliance.