The Organization for Economic Cooperation and Development (OECD) has presented a written document to the G20 financial heads and Governors of Central Banks. The document presented, talks about the excellence and goals of the OECD in redefining the’international landscape’ and providing reasons how the blockchains and technological advancements are a possible threat to the transparency of the taxing system.
OECD concerned about International Taxation system.
The document affirms that OECD has accomplished enormous acclaims, with the help of G20, in implementation of the international “tax agenda”. OECD has claimed that the policies provided by them have been immensely helpful for the “global financial system”, in maintaining transparency and consistency.
The OECD is looking forward to have a better transparency in taxation system and the organization has stated that “tax transparency has been at the heart of the OECD’s role in the international tax area”.
Their report seems to have boasted about their effectiveness in providing transparency in taxation. However, the concerns regarding the technological advancements and digitalization seems to be their major agenda now.
The OECD said, “technologies like blockchain give rise to both new, secure methods of record-keeping while also facilitating cryptocurrencies” , which poses “risks to the gains made on tax transparency in the last decade”.
Cryptocurrency and Blockchain technology are the possible challenges to Tax Transparency
They believe that a lot more labour needs to be vested, so that the authorities can let the advancements keep going as well as ensure the transparency of the taxation system.
The report has mentioned that the Forum on Tax Administration which is spreading it’s framework now, is going to launch more transparent tools for better practical usage and also determine the effect of those tools in the taxing system. The consequence of these implementation and thier final verdicts will be published in 2019.