As the way we exchange value changes, taxation faces a pivotal moment. Historically speaking, taxes have been taxing. But new developments in the payments ecosystem – Open Banking, ISO 20022 – are about to change all that.
As the way we exchange value changes, taxation faces a pivotal moment. Historically speaking, taxes have been taxing. But new developments in the payments ecosystem – Open Banking, ISO 20022 – are about to change all that.
Payments transfer systems can help bridge the tax gap by increasing transparency and streamlining the reporting process.
Electronic payments can reduce cash transactions, making it harder for individuals and businesses to evade taxes. Enhanced efficiency in payment processing can also improve public finances by ensuring more accurate and timely tax collection.
You can divide the payment of any tax into three separate events: the taxable event itself, the reporting of the event to the tax authority and any other relevant parties, and finally the payment of the tax.
Payment data provides a clearer view of financial transactions, making it easier for tax authorities to track income and expenditures.
This transparency can deter tax evasion and improve compliance.
With access to detailed payment records, tax authorities can identify discrepancies between reported income and actual transactions, enabling targeted audits and enforcement efforts.
Payment data can help tax agencies develop risk models to identify individuals or businesses with a high likelihood of non-compliance, allowing for more effective resource allocation.
Promoting electronic payments reduces reliance on cash, which is often harder to track and more prone to underreporting.
With affordable fixed payments, use your personal loan to fund a major purchase, pay off credit cards.
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