Automated Tax Return Verification with Blockchain Technology …

Abstract

One of the most important phases of the tax system is the verification process which ensures that the taxpayers are paying their proper share. In Bangladesh, the verification process is fully manual; hence, it is time consuming, tedious, error-prone and easy to manipulate. The taxpayers can file taxes with incorrect or falsified information, and manual verification can overlook that information. In this paper, we have proposed an automated tax verification system using Blockchain technology which will reduce the potential corruption in many folds. Update or deletion on any data in Blockchain system is not allowed. The inherent security feature of Blockchain makes the data secure, temper-proof and difficult to hack. In the proposed architecture, in addition to securing the taxpayers’ information on these private Blockchain systems, the taxpayers’ filed tax returns are verified instantaneously on the fly. In this verification process, the system retrieves the taxpayers’ information from the employers’, financial institutions’ and all other appropriate institutions’ private Blockchain systems. To further reduce fraudulent financial schemes, as a part of the verification process, it compares the current year’s taxable income, tax exemption, etc., of the taxpayers with their previous year’s information.

Keywords

Tax return Blockchain Verification Automated Smart contract 

References

  1. 1.

    National Board of Revenue, Bangladesh.

    http://nbr.gov.bd

    . Accessed 3 Jan 2019

  2. 2.

    Gupta M (2017) Blockchain for dummies, IBM Limited Edition, A Wiley Brand

    Google Scholar

  3. 3.

    What are the Key Concepts of Blockchain Development.

    https://www.leewayhertz.com/blockchain-development-key-concepts/

    . Accessed 20 May 2019

  4. 4.

    Satoshi N (2008) Bitcoin: a peer-to-peer electronic cash system.

    https://bitcoin.org/bitcoin.pdf

  5. 5.

  6. 6.

    Hou H (2017) The application of Blockchain technology in e-government in China. In: 26th international conference on computer communication and networks (ICCCN), pp 1–4

    Google Scholar

  7. 7.

    Blockchain opportunities for the wealth and asset management industry, article, CH alliance yearly publication (2019).

    https://www.chappuishalder.com/wp-content/uploads/2019/01/1.-ARTICLE-05-Blockchain-2.pdf

  8. 8.

    Blockchain Asset Management Homepage.

    http://www.Blockchainmgt.com/

    . Accessed 11 Aug 2019

  9. 9.

    Fanti G, Bagaria V, Avestimehr S, Alizahed M (2019) Decentralized payment systems: principles and design, book

    Google Scholar

  10. 10.

    Mazieres D (2015) The stellar consensus protocol: a federated model for internet-level consensus. Stellar Development Foundation

    Google Scholar

  11. 11.

    Ripplenet Homepage.

    https://ripple.com/

    . Accessed 11 Aug 2019

  12. 12.

    Siyal A, Junejo A, Zawish M, Ahmed K, Khalil A, Soursou G (Jan, 2019) Applications of blockchain technology in medicine and healthcare: challenges and future perspectives, article

    Google Scholar

  13. 13.

    Bell L, Buchanan W, Cameron J, Lo O (May, 2018) Applications of blockchain within healthcare, article

    Google Scholar

  14. 14.

  15. 15.

    Guo Y, Liang C (2016) Blockchain application and outlook in the banking industry. Guo and Liang Financ Innov 2:24

    CrossRefGoogle Scholar

  16. 16.

    Conoscenti M, Vetro A, Martin J (2016) Blockchain for the internet of things: a systematic literature review. In: 2016 IEEE/ACS 13th international conference of computer systems and applications (AICCSA). IEEE

    Google Scholar

  17. 17.

    Alam T (2019) Blockchain and its role in the internet of things (IoT), Article

    Google Scholar

  18. 18.

  19. 19.

    Troy S (2017) Blockchain in logistics and transportation: transformation ahead, article, IoT World Today (5 Oct 2017)

    Google Scholar

  20. 20.

    Mire S (2018) Blockchain in Ridesharing: 5 possible use cases, Article, Disruptor Daily (7 Nov 2018)

    Google Scholar

  21. 21.

    Arcade City Homepage.

    https://arcade.city/

    . Accessed 11 Aug 2019

  22. 22.

    Lazooz Homepage.

    http://lazooz.org/

    . Accessed 11 Aug 2019

  23. 23.

  24. 24.

  25. 25.

    Music On The Blockchain (2016) For creative industries research cluster, Middlesex University, Report

    Google Scholar

  26. 26.

    Mire S (2018) Blockchain in retail: 9 possible use cases, Article, Disruptor Daily

    Google Scholar

  27. 27.

    Weldon R, Herridge M, Cohen J (July, 2017) Retail: opening the doors to blockchain. report, digital system and technology

    Google Scholar

  28. 28.

    Thomson R, Shact A (2016) Blockchain (Distributed Ledger Technology) solves VAT fraud. Boston University School of Law, Law and Economics Research Paper No, pp 16–41

    Google Scholar

  29. 29.

    Wijaya D, Liu J, Suwarsonon D, Zhang P (2017) A new blockchain-based value-added tax system. In: International conference on provable security

    Google Scholar

  30. 30.

    Deloitte (2017) Blockchain technology and its potential in taxes

    Google Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  • Safayet Hossain
    • 1
  • Showrav Saha
    • 1
  • Jannatul Ferdous Akhi
    • 1
  • Tanjina Helaly
    • 1

    Email author

  1. 1.University of Asia PacificDhakaBangladesh

All copyrights for this article are reserved to news

Leave a Comment

Your email address will not be published. Required fields are marked *