Zhongcai Review: Blockchain and fiscal and taxation naturally attract each other, realizing smart fiscal and taxation in a real sense

Author: BI husband

Source: China Business News

Editor's Note: The original title was "China Finance Review: The Natural Attraction of Blockchain and Finance"

Blockchain is no longer a technology “lone traveler” who has stepped out of the laboratory, but is penetrating and radiating towards a deep industrial zone with a mature attitude. In the industry space it can reach, finance and taxation should be one of the important scenarios for the application of blockchain technology. Through the empowerment of blockchain, finance and taxation can not only realize the innovation of management methods and means, but also "Strengthening fitness" in the modernization of fiscal and taxation governance.

Compared with other fields, the traceability, decentralization, and de-risking of blockchain technology and the smart contract mechanism and finance and taxation have more naturally attracted components, such as immutability, objective effectiveness, and information symmetry in fiscal and tax management. These concepts are in line with many characteristics of blockchain technology, which can also construct a safe, authentic, transparent and efficient management scenario for finance and taxation.

First of all, blockchain technology can realize the symmetrical distribution and identification of fiscal and tax information, and then achieve the consensus of stakeholders on fiscal and tax policies. In terms of finance, unlike the traditional centralized management model, only the central or a certain range of leaders understand the distribution and allocation of funds. Under the blockchain “decentralized” mechanism, all lower-level governments, enterprises and citizens can see publicly. Distribution of financial resources. Similarly, the use of public financial funds is also different from the traditional centralized model in which only the actual occupant can know the dynamic distribution and actual process. Through the blockchain network, higher-level governments can also truly control the landing and application of funds and their effects. In terms of taxation, in addition to the "decentralized" management method of the blockchain, in addition to the traditional mode of management and taxation departments can grasp the tax source and the actual taxation process, taxpayers can also see themselves and related companies, regions and the entire country. Tax status. Of course, on the basis of the symmetrical access to information, due to the role of the "de-risking" mechanism, all information sharers also have a high degree of mutual trust, which also represents a consistent identification of the state's fiscal and taxation policies, thereby helping to minimize the policy. Cognitive divergence and frictional resistance during execution.

Secondly, blockchain technology is conducive to strengthening the monitoring of fiscal and tax resources, preventing and eliminating illegal gaming of fiscal and tax funds. When dealing with the use of fiscal funds by the central and superior governments, a variety of deviance such as fraudulent compensation and embezzlement may occur in the actual process. At the same time, tax evasion and tax evasion by legal persons and natural persons are common. However, in response to the blockchain smart contract, every real use of financial funds will have a real-time real-time record, and each time the enterprise and personal income can also be automatically booked on time, and the blockchain smart contract can also be implemented on tax payment. Automatically implemented, the national tax source can be locked without leaking. In addition, due to the fact that the blockchain is information that cannot be tampered with and can be traced back, for the illegal use of public financial funds, the supervisory layer can not only find the risk points in a timely manner, but also quickly check and stop the violations, and can also accurately ask questions. Responsibility and accountability, complete closed-loop management of the entire process ensures the rationalization and effective allocation of limited financial funds.

Secondly, blockchain technology can greatly reduce the cost of fiscal and tax supervision and improve the effectiveness of supervision and management. For the supervision of the use of financial resources, a lot of manpower and material resources are often invested in the traditional model, which not only has a large cost and cost, but also has a time lag in correcting violations. With the help of blockchain technology, static allocation and dynamic use of funds can be monitored at any time and errors can be corrected in a timely manner to effectively control the expansion of losses. Similarly, taxation management in the traditional model often requires a large number of tax auditors. Not only may there be blind spots in tax collection and management, but also transgressions such as abuse of power and human tax will occur. With the blockchain, taxpayers will automatically pay at that time, and they will be truly transparent. As a result, the cost of public tax collection can be reduced.

In the end, blockchain technology can realize intelligent finance and taxation in a real sense, and guide fiscal and taxation governance into a modernized track. In addition to automatic bookkeeping, automatic tax payment, timely tracking, and rapid error correction, all of the intelligent energy embedded in the fiscal revenue of the blockchain, blockchain technology can also implement data-based accounting instead of traditional paper-based accounting. The automatic sorting of accounting data by time while ensuring that the data is permanently saved will greatly reduce the management cost of financial resources. Similarly, with the on-chain application of corporate and personal information, and the application of blockchain electronic invoices, taxpayers will no longer need to use invoices to prove their authenticity, and all transaction information records are true and complete, which can be achieved Data management tax replaced bill management tax, and tax collection and management entered the "no-ticket era".