The Blockchain Technology and Tax Compliance: Possibilities and Potential Uses

Henrique Franceschetto

doi:10.37497/CorruptionReview.4.2022.69

Authors

Henrique Franceschetto OAB - Santa Catarina Sectional

DOI:

https://doi.org/10.37497/CorruptionReview.4.2022.69

Keywords:

Blockchain, Compliance, Digital ledger technology, Tax compliance

Abstract

This work represents a study aimed at exploring the relationship between Tax Compliance and the distributed ledger technology known as "Blockchain," without fully exhausting the subject matter. The main objective is to clarify and demonstrate the potential uses of Blockchain technology in facilitating corporate tax compliance. The anticipated potentials of this technology are just as significant as the possibilities it offers for tax authorities in terms of monitoring tax collection, which will also be addressed.

The study adopts an inductive method and relies on research conducted through bibliographic and jurisprudential sources, both in physical and digital formats. The research is justified by the revolutionary potential that Blockchain technology holds for tax compliance activities. The hypothesis guiding this research is that Blockchain technology can be effectively and disruptively applied in the field of Tax Compliance.

Through a thorough analysis of basic concepts related to Blockchain technology, this study reaches the conclusion that the hypothesis is valid. It identifies various fiscal issues that can benefit from the use of this technology and presents concrete cases where it is already being implemented in Brazil. Furthermore, the study explores potential applications of Blockchain technology in Tax Compliance based on research and publications by leading accounting and tax auditing firms worldwide.

The topic addressed in this study is highly relevant and timely, as the practical possibilities of Blockchain technology are just beginning to emerge. Recent developments, such as the launch of Blockchain systems by Brazil's tax authorities, further emphasize the importance and timeliness of this research.

In conclusion, this study aims to contribute to the understanding of the potential uses of Blockchain technology in the context of Tax Compliance. It highlights its disruptive potential and offers insights into how this technology can transform the routines of tax professionals in the coming years.

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Author Biography

Henrique Franceschetto, OAB - Santa Catarina Sectional

Tax Lawyer and co-founder of the Escola Brasileira de Tributos – EBT (“Brazilian School of Taxes”), Specialist in Tax Law from IBET-SC (“Brazilian Institute of Tax Studies”), holds an MBA in Financial Man- agement, Controllership and Auditing from FGV, gives lectures, researches and publishes in the area of Tax Law. Has a post-graduate degree in Civil Procedural Law and in Teacher’s Education for Higher Legal Education from Universidade Anhanguera / LFG. He is chairman of OAB/SC Business and Tax Law Commission, Palhoça/SC Subsection, Deputy Secretary of the OAB - Santa Catarina Sectional - Tax Law Commission, General Secretary of the “Santa Catarina Tax Studies Association” - ASSET/SC, and Legal Director of the “Business Association of Palhoça” (ACIP). He is also a Professor of Corporate Finance and Federal Tax Audit in postgraduate courses at institutions such as FAE/RS and FATENP/SC. Current- ly resides in Palhoça/SC.

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