Tencent has the Chinese tax regulatory authority on 24. May was signed a contract, which provides for the “Smart Tax” library. The new Innovation aims to modernise the tax management and at the same time, the Blockchain technology to combat tax fraud.
The partnership between the Shenzhen National Taxation Bureau (state administration of tax Department) and Tencent (a technology company) will bring key instruments and tools, which will help the Chinese government to pursue large underground markets for tax fraud.
Government agents will be able to identify criminals, withheld tax payments and the Problem of counterfeit goods and items contain. In addition, incorrect expenditure, or practices to control to handle to,easy time can be identified.
In a recent speech the Chairman of the Board of Tencent Ma Huateng mentioned that the new partnership “Intelligent Tax” is an Innovation that relies on the dissemination of already existing programs, such as WeChat and on a new type of bill circulation in the Blockchain network and integrate.
The Chinese government plans to develop a digital Form of accounting, the national accounting aims to simplify with the help of the Blockchain and optimize (freely translated):
The on the Blockchain-technology based digital invoice provides functions such as the full traceability of the entire process and interruption-free information, which to avoid in accordance with the accounting logic of false documents effectively and the audit monitoring process can improve.
The new technology will not only be able to keep track of tax fraud and combat, but it should be easier to declare taxes and pay for it.
Although China currencies against Bitcoin, ICOs and Crypto in General, a hard attitude, it is about the future use of the block chain technology in their own country to be positive and pushing forward developments in this area.