Global tax systems are responsible for handling and storing vast amounts of data. The protection of which is paramount is paramount for businesses and governments alike. Tax authorities are increasingly implementing continuous transaction controls such as electronic invoicing, auditing, and real-time reporting, to insert themselves ever closer to companies’ transactions. Encryption is one of the most powerful means of protecting the sensitive information shared within these digital transaction controls. Encrypting the data both in transit and at rest means that, in theory, only the transmitting organization and the receiving tax authority can access the contents.
Source: https://www.helpnetsecurity.com/2021/07/30/governments-data-security-priority/