Being inspected by the tax authorities can be time-consuming and costly for a business; gathering invoices and records in advance of litigation even more so.
By conducting business on blockchain, by developing a system where VAT and Duty liabilities are calculated and reported in real time, and by constructing business records that are always accurate and immediately accessible, blockchain can help to avoid unwanted situations.
When a business, its counterparties, and the relevant tax authorities all have instant access to the records that matter, lengthy tax investigations could become a thing of the past.
