{"id":310978,"date":"2021-07-29T11:46:00","date_gmt":"2021-07-29T08:46:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ey-aims-to-simplify-cross-border-withholding-tax-process-with-blockchain\/"},"modified":"2021-07-29T11:46:00","modified_gmt":"2021-07-29T08:46:00","slug":"ey-aims-to-simplify-cross-border-withholding-tax-process-with-blockchain","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ey-aims-to-simplify-cross-border-withholding-tax-process-with-blockchain\/","title":{"rendered":"# EY aims to simplify cross-border withholding tax process with blockchain"},"content":{"rendered":"<p>&#8220;<strong># EY aims to simplify cross-border withholding tax process with blockchain <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvNTczNDlmZjctNmMyYy00MGVlLWJiMjYtZDZkNzdkNjBiMmU2LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>Global professional services firm Ernst &amp; Young (EY) continues exploring the potential of blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> to improve taxation processes with a new initiative.<\/p>\n<p>The company <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ey.com\/en_lu\/news\/2021\/07\/ey-professionals-government-and-industry-representatives-complete-a-blockchain-project-to-tackle-global-tax-challenge\">announced<\/a> Wednesday that EY completed a blockchain-based project to address complexities and inefficiencies in the cross-border withholding tax (WHT) process, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly a paper-based process where data could be lost or not shared properly due to privacy concerns. <\/p>\n<p>\u201cIt also may not be trusted by counterparties and tax authorities, who require more and more information to validate that the correct amount of withholding tax has been paid either by relief at source or after a withholding reclaim,\u201d EY noted.<\/p>\n<p>The new WHT solution implements EY\u2019s blockchain-based technology to enable secure, automated and decentralized sharing of financial information between tax authorities and related inter<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>ries and improve tax compliance and reduce fraud.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The Withholding Tax solution uses EY <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/blockchain?src=hash&amp;ref_src=twsrc%5Etfw\">#blockchain<\/a>-based technology to automate, decentralize and share tax and financial information more securely between financial intermediaries and tax authorities. Discover how it works: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/h21dwnWGOe\">https:\/\/t.co\/h21dwnWGOe<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/3ALZpV0Q2w\">pic.twitter.com\/3ALZpV0Q2w<\/a><\/p>\n<p>\u2014 EY Tax (@EY_Tax) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/EY_Tax\/status\/1420425073341644806?ref_src=twsrc%5Etfw\">July 28, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>The project involved several global tax authorities, including the United Kingdom\u2019s tax collection agency HM Revenue &amp; Customs, the Netherlands Tax Administration and \u200b\u200brelevant authorities in Norway. Participating companies included French banking group BNP Paribas, American investment bank JPMorgan, financial services company Northern Trust, and Citibank.<\/p>\n<p>As part of the project, EY experts alongside state and industry representatives have specifically tested the TaxGrid blockchain solution, a multi-party blockchain network connecting financial intermediaries to share tax and finance data. The solution deploys smart contracts to tokenize investment entitlements and distributes them on blockchain wallets owned by various financial entities. The tool uses tokens to receive investment data and calculate the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ropriate WHT once final investors are identified.<\/p>\n<p>To ensure privacy on the TaxGrid network, the solution implements zero-knowledge proof technology, a digital protocol that allows sharing data between parties without using passwords or other private information.<\/p>\n<p><strong><em>Related:\u00a0Binance cuts withdrawal limits, rolls out tax reporting tool<\/em><\/strong><\/p>\n<p>\u201cDistributed ledger technology as a solution to the WHT challenge is no longer merely a concept,\u201d EY\u2019s WHT distributed ledger report <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/assets.ey.com\/content\/dam\/ey-sites\/ey-com\/en_gl\/topics\/tax\/tax-pdfs\/ey-withholding-tax-distributed-ledger-report.pdf\">notes<\/a>, adding that the project has provided a basis for enabling a global solution to address various demands of taxpayers and tax authorities. \u201cThis could support the European Commission\u2019s proposal to begin building a common, standardized, EU-wide system for withholding tax relief at source,\u201d starting in 2022, EY stated.<\/p>\n<p>EY has been actively working on blockchain and cryptocurrency-related tax solutions in recent years. The company last year released a crypto tax app called EY CryptoPrep to provide a fully automated product to assist clients with tax filings in the United States.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ey-aims-to-simplify-cross-border-withholding-tax-process-with-blockchain\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# EY aims to simplify cross-border withholding tax process with blockchain &#8221; Global professional services firm Ernst &amp; Young (EY) continues exploring the potential of blockchain technology to improve taxation processes with a new initiative. The company announced Wednesday that EY completed a blockchain-based project to address complexities and inefficiencies in the cross-border withholding tax&#8230;<\/p>\n","protected":false},"author":1,"featured_media":310979,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvNTczNDlmZjctNmMyYy00MGVlLWJiMjYtZDZkNzdkNjBiMmU2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,78820,75831,46483,4965],"class_list":["post-310978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-ernst-young","tag-taxation","tag-taxes","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/310978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=310978"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/310978\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/310979"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=310978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=310978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=310978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}