As the global economic system moves towards decentralized currencies, ensuring the protection of tax revenue becomes a significant concern for governments worldwide. Decentralized currencies, such as cryptocurrencies, present challenges for tax authorities due to their decentralized nature, pseudonymous transactions, and cross-border accessibility. Without proper mechanisms in place, there is a risk of tax evasion and revenue loss. Governments and tax authorities are exploring various strategies to address this issue, including regulatory frameworks, technological solutions, and international cooperation. Objective Question: In the context of protecting tax revenue in a global economic system shifting towards decentralized currencies, what approach focuses on enhancing international collaboration to address cross-border tax evasion and compliance challenges? A) Implementing blockchain technology for transparent tax tracking B) Establishing international taxation treaties C) Increasing tax enforcement measures on digital transactions D) Encouraging adoption of centralized digital currencies for taxation purposes
As the global economic system moves towards decentralized currencies, ensuring the protection of tax revenue becomes a significant concern for governments worldwide. Decentralized currencies, such as cryptocurrencies, present challenges for tax authorities due to their decentralized nature, pseudonymous transactions, and cross-border accessibility. Without proper mechanisms in place, there is a risk of tax evasion and revenue loss. Governments and tax authorities are exploring various strategies to address this issue, including regulatory frameworks, technological solutions, and international cooperation. Objective Question: In the context of protecting tax revenue in a global economic system shifting towards decentralized currencies, what approach focuses on enhancing international collaboration to address cross-border tax evasion and compliance challenges? A) Implementing blockchain technology for transparent tax tracking B) Establishing international taxation treaties C) Increasing tax enforcement measures on digital transactions D) Encouraging adoption of centralized digital currencies for taxation purposes
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
i need the answer quickly
Transcribed Image Text:As the global economic system moves towards decentralized currencies, ensuring
the protection of tax revenue becomes a significant concern for governments
worldwide. Decentralized currencies, such as cryptocurrencies, present challenges
for tax authorities due to their decentralized nature, pseudonymous transactions, and
cross-border accessibility. Without proper mechanisms in place, there is a risk of tax
evasion and revenue loss. Governments and tax authorities are exploring various
strategies to address this issue, including regulatory frameworks, technological
solutions, and international cooperation.
Objective Question:
In the context of protecting tax revenue in a global economic system shifting towards
decentralized currencies, what approach focuses on enhancing international
collaboration to address cross-border tax evasion and compliance challenges?
A) Implementing blockchain technology for transparent tax tracking
B) Establishing international taxation treaties
C) Increasing tax enforcement measures on digital transactions
D) Encouraging adoption of centralized digital currencies for taxation purposes
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education