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ARTICLE · 30 JANUARY 2017

Goodbye, Annual Tax Returns… Hello, Blockchain

A blockchain (also called distributed ledger technology or DLT) is essentially a permanent and immutable record of transactions – in real time – within a network.

LuxembourgTax

In Charles Dickens's David Copperfield (1850), an adolescent David works long hours to learn shorthand, a type of abbreviated language composed of symbols. The skill gives him a fighting chance for a job as a court reporter, a sound career since records of what was said in court needed to be kept, and writing shorthand was the only way.

In 2017 this profession is pitifully archaic. My question is... will the concept of annual tax returns be relegated to the realms of fiction and history in the same way? Blockchain technology suggests yes, and we can already see the framework being set down here and now.

Spoiler alert

A blockchain (also called distributed ledger technology or DLT) is essentially a permanent and immutable record of transactions – in real time – within a network. At the root of the blockchain are “digital ledgers” that are distributed amongst all network participants to serve as a common source of truth. Since the system relies on references to

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