A blockchain-based anonymous and regulated e-taxing protocol for art trading^☆

Abstract

Taxation, the primary source of fiscal revenue, has profound implications in guiding resource allocation, promoting economic growth, adjusting social wealth distribution, and enhancing cultural influence. The development of e-taxation provides a enhanced security for taxation, but it still faces the risk of inefficiency and tax data leakage. As a decentralized ledger, blockchain provides an effective solution for protecting tax data and avoiding tax-related errors and fraud. The introduction of blockchain into e-taxation protocols can ensure the public verification of taxes. However, balancing taxpayer identity privacy with regulation remains a challenge. In this paper, we propose a blockchain-based anonymous and regulatory e-taxation protocol. This protocol ensures the supervision and tracking of malicious taxpayers while maintaining honest taxpayer identity privacy, reduces the storage needs for public key certificates in the public key infrastructure, and enables self-certification of taxpayers' public keys and addresses. We formalize the security model of unforgeability for transactions, anonymity for honest taxpayers, and traceability for malicious taxpayers. Security analysis shows that the proposed protocol satisfies unforgeability, anonymity, and traceability. The experimental results of time consumption show that the protocol is feasible in practical applications.

Keywords

E-taxing / Blockchain / Schnorr signature / Regulation / Anonymity

CRediT authorship contribution statement

Xuejing Liu: Writing - review & editing, Writing - original draft, Resources, Methodology, Investigation, Formal analysis, Conceptualization. Hongli Liu: Methodology, Data curation, Conceptualization. Xingyu Liang: Writing - review & editing, Validation, Resources, Data curation. Yuchao Yao: Software, Resources, Methodology.

Declaration of Competing Interest

No competing interest.

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