Automatic tax payment
Tax payments are fuelling the economy on many levels, but for an average person, they are neither transparent enough nor easy to understand if they have to calculate them themselves. Making a mistake in this area can be very costly, as many have unfortunately discovered.
Challenge
This is why there is a strong need to simplify and automate this area. However, such a system would require major innovations in infrastructure. It would require the provision of a digital layer to the citizens’ identities, to know who or what entity is paying the tax, and then have the record of the amount that needs to be paid or that has been paid automatically.
A centralized solution would – most probably – be insufficient. Such a centralized database can be a desired target of hackers, who after breaching the security, could steal identities, create fake ones, or extract information about the incomes of individuals, along with their identities and addresses. A decentralized solution would be much more secure.
What Aleph Zero is doing
With Aleph Zero, the room for tax optimization can still be preserved but the security risk eliminated. With all transactions held on Aleph Zero, and a public ledger and smart contracts enabled on the platform, taxes could be calculated and charged automatically and always correctly. Automatic tax payments could also make cross-border VAT settlements seamless, and with a broad implementation, it could even completely remove the need for accounting, or at least for issuing invoices.
With its scalability, speed, security, and interoperability, Aleph Zero is an ideal solution for creating such an innovative and efficient worldwide-adopted ecosystem.