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November 3, 2016
2016-1858

Preparing for digital taxation in a blockchain world (BNA)

Channing Flynn, Global Technology Sector Leader with EY's Tax Services group, recently authored an article published in BNA's Tax Practice International Review discussing the long-term implications of blockchain technology developments for corporate taxpayers, tax authorities and tax advisory organizations.

According to the article, blockchains are large, distributed, multiparty shared databases that have a mechanism for replicating transactional data in real time with unequaled reliability and security. In addition, blockchains are transparent — all parties to a given blockchain see all the transactions recorded therein. The author further notes that there are a number of hurdles to widespread adoption of blockchain technology, including concerns about how to quickly scale transaction processing speed and storage. While none of these challenges are trivial, the author notes that past technologies that generated similar excitement and interest as blockchain has, among as many diverse stakeholders, usually overcome their challenges.

The article, published in the October 2016, edition of Tax Practice International Review, is attached below.

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ATTACHMENT

Full text of BNA article

 

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