Do you like paying taxes?? The answer is most probably no. However, almost all of us pay our taxes dutifully because we are aware of the benefits. Schools for our children, police to keep our streets safe, and doctors to help us when we are sick. To name a few.
For those of you that pay your taxes, it is a bitter pill to swallow seeing billionaire owners of large corporations like Google and Amazon get away with paying almost no tax. It is made worse by poor government decisions. Like billions squandered on worthless projects or services that are promised, but never actually materialise. In some cases, fraud and embezzlement by politicians and their associates also see much of your hard earned money lost forever.
The true cost of fraud
In 2016 the IRS in the USA stated that almost $500 billion a year were being lost as a direct result of tax evasion and that just over 81% of owed tax was being paid on time. When you understand that the yearly tax revenue for the US government is just over $3 trillion, you begin to realise the huge problem tax evasion and fraud plays in the system.
This unpaid tax can be from big multi-nationals like Google and others who use shell corporations and other mechanisms to declare taxes and income from one country in another with lower or no tax. To others who may also use loopholes in tax regulations to pay considerably less tax than the rest of us. These methods are often seen as being for the rich.
However, at the other extreme, people fraudulently claiming benefits from the UK government is reported to cost the country an extra £2 billion a year. This is just over 0.1% of all government spending.
These losses are ultimately transferred back to you (the taxpayer) as governments try to recoup the lost tax revenues. And this is done by increasing taxes or creating additional taxes for those who do pay. It is for these reasons that many people feel that our governments are not being transparent with us in terms of the taxes that are not being paid and how the money that is received is spent.
Is Cryptocurrency a solution to tax fraud?
In total, it is believed that companies lose on average around 5% per year as a direct result of fraud. But just how could cryptocurrencies solve this problem? That is very simple: transparent transactions! For example, all tax money paid by large companies and rich individuals to the government will be clearly visible. Likewise, at the same time, government funds that are set aside to pay for certain services, such as education can be seen and tracked. For this reason, any under or overspending can be easily seen, along with who is receiving the payment and for what services. This makes it much harder for politicians to take some of this money for themselves or to provide preferential or overpaid contracts to friends, relatives or business associates.
By 2020 credit card fraud is expected to cost the global economy over $35 billion a year. With cryptocurrencies such as Dagcoin, it is much harder or impossible to commit such crimes. Because no physical card or card details are provided. With a regular card, it can be swiped and cloned in a store or restaurant very easily, details can also be stolen from an online store database, or even provided to criminals directly, but unknowingly. With a cryptocurrency, you and you alone have access to your cryptocurrency wallet. Even if someone were to steal your phone, they would not have access without knowing your passwords.
For businesses too, there would be a huge advantage of no fraudulent chargebacks. Chargebacks cost businesses around the world over $40 billion each year. A chargeback happens when a person pays for goods or services using their credit/debit card and then asks their bank to take this money back from the business. However, in the case of fraud, the client has likely already received the services or goods, or these goods are already on route. By the time a business is aware of the fraudulent chargeback, the client is often long gone with the money and the goods. As cryptocurrencies like Dagcoin do not have chargebacks, businesses can relax without the worry of chargeback fraud.
Why Dagcoin is the most transparent currency
Dagcoin was not just built to be a currency that could be used every day, by everybody, everywhere, it was also made to be the most transparent cryptocurrency. Currencies such as Bitcoin have hit serious legal problems in many countries around the world as a result of the anonymity of transactions, and their use to pay for illegal goods secretly in places such as the dark web. This has led to Bitcoin and other cryptocurrencies being banned in some countries around the world. It is these problems that have hindered their expansion into the mainstream, as the wider global population and governments simply do not trust them as they are not transparent enough.
Unlike other cryptocurrencies, Dagcoin keeps a full transaction history, just like you have with your bank statement. This doesn’t just mean that it can be used in the same way, to track income and expenditure or as a record when applying for a loan or mortgage. Knowing the senders, receivers and values of these transactions makes Dagcoin as transparent as a regular bank account, but with added security.
Large corporations and very wealthy individuals are getting away with paying very little or no tax. Governments and politicians are wasting and even embezzling public money for themselves. At the same time, benefit frauds are also costing the system billions. All these things mean that regular dutiful taxpayers like you and me are left to foot the bill by paying even higher taxes.
However, cryptocurrencies such as Dagcoin offer a solution. That solution is transparency. With Dagcoin a full history of all transactions is kept. This means that all money received and sent, as well as from who and to who can be seen. This means that whether it is a payment for a new MRI machine for a hospital or new police cars, the payments value, sender and receiver, and reason are all visible. Providing an extra level of accountability and making it harder to take money from the system.
Chargebacks and credit card fraud are a thing of the past with cryptocurrencies like Dagcoin. Businesses and individuals no longer need to worry so much about losing hard earned money or their identity to fraudsters.
Have we missed something out? Do you have any questions? Get in touch…
Nils Grossberg is an entrepreneur from Tartu, Estonia. Nils Grossberg graduated from the University of Tartu with a bachelor’s degree in History. He is the co-founder and former CEO of Dagcoin OÜ, the software company behind the development of Dagcoin cryptocurrency and its ecosystem.