After an agreement was signed between Tencent and the Chinese regulator on 24th May, the intelligent Tax library was established. The new innovation will aim at modernizing tax management while also using blockchain technology to fight tax fraud.
The partnership between the Shenzhen National Taxation Bureau (a state administration arm of the taxation department) and Tencent (a technology firm) will bring to fruition key instruments and tools that will help the Chinese government track large underground markets for tax fraud cases.
Counting the Days to the End of Tax Fraud in China
Government agents will be able to stay atop of tax payments and curb the issue of counterfeit or copied goods and items (a situation prevalent in China). Furthermore, buyers known to be using fraudulent receipts to defraud employers, claim false expenditure or evade taxes will be dealt with thanks to this new system, which is currently in development.
In his speech during the announcement, the Chief Executive of Tencent, Ma Huateng, mentioned that the new partnership will bring to life Intelligent Tax, an innovative product set to become the most important innovation for both entities as it will incorporate small programs like WeChat to create a new way for invoice circulation on the blockchain network.
Making it Easy to Pay Tax Through Blockchain
The Chinese government is planning to integrate the fapiao (a digital form of invoice solution) as one of the premier products of the intelligent tax laboratory project, and as the Deputy Director at Shenzhen National Taxation Bureau said;
The digital invoice based on Blockchain technology has features such as complete traceability of the whole process and non-disruptive information, which consistent with invoice logic, can effectively avoid false invoices, and improve the invoice supervision process
This new technology is bound to not only track and fight tax fraud but will also make it easier for people to declare and pay taxes as they can easily do it through the popular WeChat app.
Although China has maintained a harsh stance on Bitcoin, ICOs, and cryptocurrencies in general, it has remained somewhat optimistic about the future use of blockchain technology in the advancement of certain aspects of governance.
Could this be one of its moves to show support for Blockchain technology? Well, the Chinese IT ministry certainly thinks so. With a published whitepaper on blockchain, the ministry produced a report earlier this week. The report revealed that Chinas domestic industry would thrive on blockchain integration. While showing the growth of the technology, terming it a national science technology, the report also encouraged more integration of this revolutionary technology into government operations.
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