Blockchain, RegTech and their Application to Transfer Pricing Activities in the Cloud
- Publication Type:
- Journal Article
- Citation:
- Houston Business and Tax Law Journal, 2020, XXI, (1), pp. 142-180
- Issue Date:
- 2020-11-06
Closed Access
Filename | Description | Size | |||
---|---|---|---|---|---|
Pages from HBTLJ 21.1 Final.pdf | Published version | 635.46 kB |
Copyright Clearance Process
- Recently Added
- In Progress
- Closed Access
This item is closed access and not available.
This article examines the recent development of transfer
pricing (T.P.) activities by Multi-National Enterprise (MNE)
groups in the cloud. In particular, this article explores both the
risks and opportunities arising from using blockchain-based
regulatory technology (RegTech) to regulate T.P. activities in the
cloud. It provides an overview of the main forms of cloud-related
T.P. activities and highlights key challenges for implementing T.P.
rules in the cloud. It explores key features and potential limits of
distributed ledger technology (DLT), blockchain, and smart
contracts. It also discusses how blockchain smart contracts can be
used as RegTech for implementing T.P. rules. Some have
suggested that blockchain and other DLT could provide a solution
to the practical challenges posed by the widespread use of cloud
systems to facilitate T.P. This article critiques this proposed
solution and ultimately concludes that such a solution would face
significant practical and legal obstacles. The article draws on
insights from some recent developments in China, including
decisions of the Chinese Internet Court, Supreme Court
interpretations, and recently launched judicial blockchain
platforms in China. It contends that, although technology
measures may serve as an important supplement for T.P. rules
enforcement, the advantages of blockchain smart contracts should
not be overstated and potential risks must be addressed. The
success of blockchain-based RegTech requires the cooperation of
all stakeholders and even-development of the capacity to use
blockchain technology across different sectors of society.
Please use this identifier to cite or link to this item: