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EY to Launch Blockchain Solution to Simplify Tax Calculation

Consulting company Ernst & Young (EY) has completed the development of a blockchain solution that should make life easier for citizens of various countries who receive income abroad.

The calculation of income tax for employees is usually quite simple – the tax department already has returns from companies and calculates the tax based on them. However, everything changes when a citizen works abroad – a foreign company is not obliged to submit reports to the department of another country. Therefore, the employee himself submits the declaration to the tax office. And tax calculation is associated with a significant amount of paperwork. In addition, questions arise about the credibility of the data provided.

Thanks to the blockchain, the EY solution enables the reliable and secure exchange of financial information between tax administrations and intermediate financial institutions. This will increase tax collection and reduce tax fraud.

The tax authorities of Great Britain, Norway and the Netherlands are already involved in the decision. Among financial institutions, EY WHT is supported by BNP Paribas, JPMorgan, Citibank and Northern Trust. Also, as part of the solution, the EY TaxGrid system was launched to exchange tax and financial information between different countries.

Earlier this month, EY launched the Nightfall 3 toolkit to reduce fees on the Ethereum blockchain, combining Zero Knowledge Proof (ZKP) and Optimistic Rollup.

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