EY announces the launch of new decentralised-based tax auditing tool
One of the world’s Big Four accounting and auditing firms, EY has announced the purchase of crypto-related assets that were developed by a San Francisco based company called Elevated Consciousness.
One of the tools that it has purchased includes the Andy Crypto-Asset Accounting and Tax (CAAT) which works by linking up with multiple crypto-wallets and exchanges and allowing users to experience enhanced visibility over all transactions and inventory.
The Global vice-chair of the EY Tax Services Division, state that the CAAT tool will enable the auditing firm to offer services to a range of organisations that are looking to adopt cryptocurrency assets into their business model. Michael Meisler, Tax Blockchain Leader at Ernst & Young LLP, said that bits of tech such as CAAT will enable member firms and their clients to be able to adequately assess risk when it comes to the reporting of taxable income for cryptocurrency assets.
The CAAT tool was developed in collaboration with Silicon Valley entrepreneur VJ Anma who has previously worked as a crypto-fund manager.
“We plan to integrate the CAAT tool into our Blockchain Analyzer portfolio to develop one of the industry’s broadest sets of technology and process services in tax and assurance,” EY’s global innovation leader for Blockchain, Paul Brody said when asked about the suite of technologies that was launched earlier in 2018.
The Blockchain Analyzer was designed to target businesses that work with cryptocurrencies and to enable EY to collect all transaction data over multiple blockchain ledgers. The Analyzer has been developed to work with Bitcoin, Ethereum and Litecoin currencies.
It is no secret that Ernst & Young have been blockchain trailblazers for quite some time now. Last September, it was reported that the firm had teamed up with Maersk and Microsoft to launch the very first marine insurance blockchain platform. This solution was designed with the aim of improving efficiency in the 400-year-old marine insurance marketplace.
In addition to this, the Swiss arm of Ernst & Young became the first one of the Big Four accounting and auditing companies to accept Bitcoin as a method of payment for its services in December 2016.
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