Title: A hybrid blockchain proposal to improve value added tax recovery

Authors: Christophe Gaie; Markus Mueck

Addresses: Direction Interministérielle du Numérique, 20 Avenue de Ségur, 75007 Paris, France ' Intel Deutschland GmbH, 85579 Neubiberg, Germany

Abstract: In the present article, the authors propose a novel hybrid blockchain approach to improve VAT recovery, meeting privacy requirements as introduced by the European General Data Protection Regulation. This will provide real improvement to prevent tax fraud as it will not be possible to hide cash transactions. To limit the amount of energy spent, the idea proposed in this paper is to introduce an authority with a limited action. Moreover, the authors address privacy requirements by providing two cumulative possibilities: (1) separate privacy related and other information; and (2) introduce blockchains pointers to ensure the integrity of the blockchain. Lastly, the paper underlines how government administrations are able to take advantage of the proposed new approach to struggle against illicit transactions.

Keywords: data analytics; fraud detection; tax recovery; telecommunications; blockchain; privacy protection.

DOI: 10.1504/IJITST.2022.119668

International Journal of Internet Technology and Secured Transactions, 2022 Vol.12 No.1, pp.27 - 37

Received: 18 Apr 2020
Accepted: 28 Jun 2020
Published online: 14 Dec 2021 *