Filling the Tax Gap via Programmable Money

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract / Description of output

We discuss the problem of facilitating tax auditing assuming ``programmable money'', i.e., digital monetary instruments that are managed by an underlying distributed ledger. We explore how a taxation authority can verify the declared returns of its citizens and create a counter-incentive to tax evasion by two distinct mechanisms. First, we describe a design which enables auditing it as a built-in feature with minimal changes on the underlying ledger's consensus protocol. Second, we offer an application-layer extension, which requires no modification in the underlying ledger's design. Both solutions provide a high level of privacy, ensuring that, apart from specific limited data given to the taxation authority, no additional information---beyond the information already published on the underlying ledger---is leaked.
Original languageEnglish
Title of host publicationData Privacy Management, Cryptocurrencies and Blockchain Technology: ESORICS 2021 International Workshops, DPM 2021 and CBT 2021, Darmstadt, Germany, October 8, 2021, Revised Selected Papers
EditorsJoaquin Garcia-Alfaro, Jose Luis Muñoz-Tapia, Guillermo Navarro-Arribas, Miguel Soriano
Place of PublicationCham
PublisherSpringer International Publishing Switzerland
Number of pages8
ISBN (Electronic)978-3-030-93944-1
ISBN (Print)978-3-030-93943-4
Publication statusPublished - 23 Jan 2022
Event5th International Workshop on Cryptocurrencies and Blockchain Technology 2021 - Online
Duration: 4 Oct 20218 Oct 2021
Conference number: 5

Publication series

NameLecture Notes in Computer Science
PublisherSpringer Cham
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349


Workshop5th International Workshop on Cryptocurrencies and Blockchain Technology 2021
Abbreviated titleCBT 2021
Internet address


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