Thailand To Use Blockchain To Fight Against Tax Fraud
December 4, 2018 3:57 pm
Thailand’s Revenue Department has planned to use the blockchain technology for tracking value-added tax (VAT) payments in the country. According to the reports, the department wants to implement blockchain to prevent fraudulent VAT refund activities in the country. The VAT is a kind of consumption tax levied on goods and services.
Ekniti Nitithanprapas, director-general of the Revenue Department said that blockchain would help verify invoices and remove any that were not genuine. The agency also plans to tap other emerging technologies such as machine learning, artificial intelligence and Big Data for preventing tax evasion and fraud.
In May, the tax authority in the country also came up with the same idea. Meanwhile, Shenzhen National Taxation Bureau collaborated with internet firm Tencent to use blockchain in the fight against tax evasion.
The project aims to create a digital invoice on a blockchain platform as proof of purchase for goods and services, again with the purpose of combating fake invoice. It also aims to improve the invoice supervision process.
Thailands also begins embracing blockchain technology in other fields as well. In June, the Bank of Thailand announced that it will be launching its own cryptocurrency aimed to make interbank transactions both faster and cheaper.
Meantime, BoT also collaborated with R3, the blockchain startup, and eight other banks to develop Central Bank Digital Currency (CBDC). The currency would serve as a new way to carry out interbank settlements.
Recently Thai SEC issued a warning on Friday against 14 websites whose operations have not been approved for conducting cryptocurrency business in Thailand. The regulatory body described that it had received complaints about companies that encourage people to buy and sell cryptocurrencies through social media.