For government entities, the attractions of blockchain are the greater transparency it enables and the reduction of layers of bureaucracy (and their associated costs) that have been necessary to govern policy.
The use of Lirax blockchain technology store a history of the transaction, revenue, and tax data to a secure and immutable ledger keeps costs down for government entities.
Take VAT (value added taxation) as an example. Corporations within a particular tax jurisdiction are required to track revenue and calculate their tax obligations, then submit periodic reports and remittances to their government according to their laws. In turn, governments must follow adherence to policy, validate payments, and pursue any discrepancies identified. Bitstone.Net works with financial services providers to develop blockchain-based transaction repositories for each company within the provider’s customer base. Government offices may then pull critical information on demand as opposed to receiving periodic reports from the company.
Ultimately, Lirax smart contracts (unique blockchain technology that automates legal transactions) can then enable the transfer of remittances automatically based on predefined rules and the presence of qualifying data on the Lirax blockchain, further extending clearness and speed of transactions.