Professional Service Tokens
Presentation by:
Kavin Mohan
Pamela Duys
Chase Blakeley
Duke Blockchain Tax Masters: Problem Description
When providing a professional service, in this case a tax service, determining
resources and collecting payments are issues that occur in the process
between client and service provider.
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Planning for tax returns can be cumbersome if the tax professional does not know the demand
in terms of clients and number of tax returns
Collecting payment upon delivery of tax product or service must be collected manually in most
cases
The option to pay in cryptocurrency and tokens is not currently supported by most tax
professionals or firms
Client Side: Buying a token guarantees professional assistance of any future tax returns
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Duke Blockchain Tax Masters: Business Description
We are a CPA firm that offers tax preparation services and transactional engineering to clients in
the blockchain and cryptocurrency industry.
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Knowledgeable in blockchain, mining, and cryptocurrency transactions and competent in the taxation and
compliance of these transaction.
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Offer upfront pricing for services and will receive payment for services using Ethereum or Bitcoin.
3.
New clients receive a 1-hour complimentary consultation. Our website offers a request for meeting with one of
our professionals.
4.
Set up smart contract. When DB Tax Token is created, modified or a payment is made, transaction fees will be
earned.
5.
Earn fees for providing a proprietary platform to download transactions and fees from crypto wallets or other
platforms. Determine tax treatment, provide reports. Annual tax preparation and compliance services on a
fixed fee basis, as well.
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Blockchain Technology Can Assist Clients
Offers transparency for the client:
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Upfront pricing and discounted tokens
Services being offered are defined
Faster performance of work if client has purchased token (FIFO)
Funds held in escrow until product is delivered (multi-sig smart contract)
Use cryptocurrency for payment of professional services
Additional Advantages:
Working with experienced and knowledgeable industry tax professionals.
Working with engineers who can deal with massive number of transactions.
Blockchain Technology New Model for CPA Firms
Offers immutability and less friction for the CPA Firm:
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Upfront pricing & payment causes less friction
Purchased token offers guarantee for payment of professional services
Purchased tokens provides advanced warning of demand for services
Funds held in escrow until product is delivered (multi-sig smart contract)
Both client, CPA firm satisfaction improved. Possibly results in lower prices.
Additional Advantages:
Adding a new line of expertise or service for clientele.
Scalability of work using technology to sort transactions in decentralized systems.
Simple Model- Smart Contract with DB Tax Token
DB Tax Masters offers a smart contract and token for certain tax preparation and representation.
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We offer a 10% discounted token for advanced sign up of services before December 31st, and setting up
automatic renewal. (Value is before discount)
a.
Silver Plan- 20 Crypto transactions and simple return with wages and Schedule D (Value $750)
b.
Gold Plan- 20+ up to 100 Crypto transactions, moderate return with wages, Sch B, D and E (Value $1,500)
c.
Platinum Plan - Over 100 Crypto transactions, mining or blockchain business, most difficult (Value $5,000)
We offer a 50% discounted token for IRS notices or audit risk for tax returns we prepare. (Includes setting up a
Power of Attorney, first response to IRS notices, and initial consultation for IRS audit representation. Value $600)
3.
Payment plan with purchase of DB Tax Token (this gives the client reassurance of services performed):
a.
10% upon signing of smart contract, immediately goes to CPA firm
b.
50% upon receipt of documents to begin work
c.
40% upon delivery of product (for tax return, E-File acceptance)
d.
For items b and c, funds will be held in escrow until conditions are met.
Using Scaffold-ETH to create Multi-Sig Smart Contract
Blockchain, Crypto Tax Services
We present a live demo of how multi-sig
smart contracts may offer DB Tax
Tokens for our professional services,
including potential discounts
Add to Model- Smart Contracts with DB Tax Token
DB Tax Tokens can be generated with Smart Contracts for additional services:
Engineering blockchain, mining and crypto transactions to determine tax
consequences.
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Link to exchange databases, crypto wallets and blockchain transactions
Export transactions to proprietary software to analyze
Provide reports to tax and accounting professionals
Import transactions into accounting database like QuickBooks
Add to Model- Smart Contracts with DB Tax Token
DB Tax Tokens can be generated with Smart Contracts for additional services:
Multi-signature contracts allow for modifications in the blockchain
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Scope of work may expand or contract
Pricing increases may need to be made for changes in scope and inflation,
Tokens can be sold to existing or possibly new clients with acceptance by
CPA firm
Gas fees can be earned with changes to the blockchain, payments, credits
and refunds.
Add to Model- Smart Contracts with DB Tax Token
DB Tax Tokens can be generated with Smart Contracts for additional services:
Discounted tokens can be offered for
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Signing up early and setting up automatic renewal
Annual contracts and multiple services (three or more)
Voluminous transactions
Pre-payment with certain crypto-currencies.
Future Development and Advantages
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Tracking where and when VAT has been paid, and in doing so reducing VAT fraud
Helping multinational companies provide a consistent data set for multiple tax
authorities
Giving tax authorities and other regulators more confidence in the data supplied to them
Giving more visibility to micro transactions
Preventing double taxation
Challenges and Limitations
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Tax authorities would need to obtain information from every taxpayer and
mandating digital data would be a massive challenge.
The responsibility for collecting sales or income tax could, conceivably, shift
entirely from tax authorities to participants in the sharing economy.
False information could still enter the blockchain at the start.
■ However, bad actors are more likely to get caught in non-compliance and
possibly even excluded from the blockchain network.
● Could modify behavior
● Compliance with tax obligations easier for good actors
Questions?