Blockchain: gambling tax - automated and transparent payment to the tax authority with the use of smart contracts

M. van Schaik & R. Michgels

June 24, 2019

In this paper, the authors have taken a look into the possibilities of automated and transparant payments of gambling tax to the tax authorities with the use of smart contracts. This paper was written for the completion of the Tax & Technology 2 course at the University of Tilburg in June 2019. The main purpose of this study was to see the possibilities of taxation within the developing gambling markets, where more often gambling platforms use blockchains, for example the Ethereum blockchain. First the current situation of gambling taxation and online gambling is explained, after that the use of blockchain for gambling tax payments is researched. The main result is that is it possible to make payments with the use of a smart contract, but some law changes are necessary before this system can work. There are some challenges which should be considered as well, for example the current obligation to file tax returns and usage of the taxpayer identification number as this number should not be stored on the blockchain.

Reinforcement learning in the field of tax law

J. Molenaar & Y. Kaya

June 24, 2019

Artificial intelligence has entered our lives and fundamentally changed them. Moreover, research in AI still shows continuous improvements and more capabilities every day. A recent example of AI's accomplishments was Google’s DeepMind, which was able to learn by itself how to walk through the use of Reinforcement Learning. Until now, the current literature has primarily focused on making sure the AI-agents will be able to technically become a part of the community and making sure no humans are harmed along the way. AI-agents however, would have to deal with other 'laws' as well, such as contract law and tax law. Therefore, In this paper, we'll look at the current state of technology to explore whether an AI-agent can learn how to obey tax legislation based on the reinforcement learning method. In order to draw conclusions, we'll discuss in great detail the characteristics and conditions of reinforcement learning, use cases thus far and present a model for a TAX-AI agent based on Reinforcement Learning.