Global Tax 50 2017: Blockchain

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Global Tax 50 2017: Blockchain

 Blockchain

Blockchain is a new entry this year

Although lumps of code don't generally make the Global Tax 50 list, blockchain has earned its place with its huge potential to revolutionise how tax administration, compliance and data exchange happens.

Blockchain, the distributed ledger technology, has the potential to offer transparent transactions, but at the same time restrict who has access to the data. It can eliminate fraud with the ability to trace every transaction and verify its legitimacy. The tamper-proof technology could also make tax returns a thing of the past with real-time information being updated across each network of users.

Deloitte describes the technology as "redefining what it means to transact", and PwC says blockchain could "cut costs and add value within a business, between businesses, between businesses and consumers, and between businesses and governments".

The technology could solve the arguments we are seeing today on whether country-by-country reports should be public, or whether beneficial ownership registers should be accessible by anyone with the choice of open or closed networks. If you have a technology in place that allows you to be transparent, but at the same time select who sees your data and how much of it, and also in a secure environment, everyone could be a winner.

Already, several governments are looking into how to implement blockchain technology into their tax systems.

China's tax administration is exploring the use of blockchain as its digital data on taxpayers grow to ensure the information is secure. It is also considering using the technology to deal with the use of false identities and ensure effective registration and authentication of taxpayers. Meanwhile, smaller countries are also looking into blockchain's applications. Rwanda, for example, is considering introducing blockchain to help administer its VAT system.

"If you ask me which countries are leading the digital tax administration, the answer is Singapore, Estonia, Finland, Israel, and Rwanda," says Professor Jeffrey Owens, director of WU Global Tax Policy Center. "Why those five countries? Because they're small so they're more agile because the government has said right from the outset it wants a digital society. To get a digitalised society, it needs a digital government."

"We are at this stage now where, particularly with things like blockchain, everybody sees the potential, but nobody is quite sure about is and so nobody takes the leap. So, what you get is a whole series of experiments. Sweden is looking at how it can use blockchain to help it tax land and property, and Finland is beginning to use blockchain for payroll taxes," says Owens. "So, in a sense, we're at this stage were nobody's making the big jump but instead taking small steps. Let's see how it works in that particular area."

But, as an old Chinese proverb says, it is better to take many small steps in the right direction than to make a great leap forward only to stumble backward. If the experiments work and the technology offers the security and benefits that both taxpayers and tax authorities want, blockchain could hold the answer to a lot of tax matters.

The Global Tax 50 2017

View the full list and introduction

The top 10 • Ranked in order of influence

1. US Tax Reform Big 6

2. Dawn of the robots

3. The breakdown of global consensus

4. The fifth estate

5. Margrethe Vestager

6. Arun Jaitley

7. Sri Mulyani Indrawati

8. Pascal Saint-Amans and Achim Pross

9. Richard Murphy

10. Cristiano Ronaldo and Lionel Messi

The remaining 40 • In alphabetic order

Tomas Balco

Piet Battiau

Monica Bhatia

Blockchain

Rasmus Corlin Christensen

Seamus Coffey

Jeremy Corbyn

Rufino de la Rosa

Fabio De Masi

The Estonian presidency of the Council of the European Union

Maria Teresa Fabregas Fernandez

The fat tax

Maya Forstater

Babatunde Fowler

The GE/PwC outsourcing deal

The Gulf Cooperation Council (GCC)

International Consortium of Investigative Journalists (ICIJ)

Meg Hillier

Chris Jordan

Wang Jun

James Karanja

Bruno Le Maire

John Pombe Joseph Magufuli

Cecilia Malmström

The Maltese presidency of the EU Council

Paige Marvel

Theresa May

Angela Merkel

Narendra Modi

Pierre Moscovici

The European Parliament Committee of Inquiry into Money Laundering, Tax Avoidance and Tax Evasion (PANA)

The Paris Agreement

Grace Perez-Navarro

Alexandra Readhead

Heather Self

TaxCOOP

Tax Justice Network

Donald Trump

United Nations Committee of Experts on International Cooperation in Tax Matters

WU Global Tax Policy Center

more across site & shared bottom lb ros

More from across our site

‘KPMG Workbench’ has a network of 50 AI assistants and chatbots that will assist clients; in other news, Baker McKenzie hired a former US deputy attorney general and tax disputes expert
The UK tax agency reported that the total estimated tax gap for the 2023/24 tax year is £46.8 billion
The case shows that legal relationships between parties bear significance and should be given sufficient weight in TP analyses, one local adviser says
Burford Capital said it hopes that the US Congress will not ‘set back’ business growth and innovation by introducing a tax on litigation funding profits
The new framework simplifies the process of relocating eligible employees to Luxembourg and offers a ‘clear and streamlined benefit’, says Alexandra Clouté of Ashurst
The Portuguese firm’s managing partner tells ITR about his love of Sporting Lisbon, the stress of his '24-hour role', and why tax is never boring
The reduction would still ‘leave room’ for pillar two and further reductions would be possible, one expert tells ITR
Funding from private equity house EQT will propel WTS Germany to compete with the ‘big four’, the firm’s leaders told ITR in an extensive interview
New Zealand is bucking the trend of its international counterparts with its investment-friendly visa approach. Here’s what high-net-worth investors need to know
However, nearly 10% of reports only disclosed activities in tax havens, according to the Fair Tax Foundation; in other news, Plante Moran sealed a US east coast merger
Gift this article