The potential impact of blockchain technologies are widespread among various industries, contrary to the main belief that blockchain is only related to cryptocurrencies. Every application of the blockchain in these industries implies a potential tax consequence to be examined in depth, because it can have an impact on the tax collecting process and on the taxation of the profits accrued by these blockchain-based activities.
From ETAF’s point of view, there are three main areas of concern for tax advisers regarding the blockchain technology. The first one, and possibly the most controversial, is connected with the security of financial information in the tax collecting process. Secondly, the taxation of profits earned by individuals and companies for their blockchain-based activities can be problematic. Finally, ETAF addresses the issue of possible tax avoidance / evasion connected with the loopholes in the regulatory framework in place for cryptocurrencies.