International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

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

Global Tax 50 2017: 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


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


Tax Justice Network

Donald Trump

United Nations Committee of Experts on International Cooperation in Tax Matters

WU Global Tax Policy Center

more across site & bottom lb ros

More from across our site

The General Court reverses its position taken four years ago, while the UN discusses tax policy in New York.
Discussion on amount B under the first part of the OECD's two-pronged approach to international tax reform is far from over, if the latest consultation is anything go by.
Pillar two might be top of mind for many multinational companies, but the huge variations between countries’ readiness means getting ahead of the game now, argues Russell Gammon, chief solutions officer at Tax Systems.
ITR’s latest quarterly PDF is going live today, leading on the looming battle between the UN and the OECD for dominance in global tax policy.
Company tax changes are central to the German government’s plan to revive the economy, but sources say they miss the mark. Ralph Cunningham reports.
The winners of the ITR Americas Tax Awards have been announced for 2023!
There is a ‘huge demand’ for tax services in the Middle East, says new Clyde & Co partner Rachel Fox in an interview with ITR.
The ECB warns the tax could leave banks with weaker capital levels, while the UAE publishes guidance on its new corporate tax regime.
Caroline Setliffe and Ben Shem-Tov of Eversheds Sutherland give an overview of the US transfer pricing penalty regime and UK diverted profits tax considerations for multinational companies.
The result follows what EY said was one of the most successful years in the firm’s history.