Chinese City Enables Blockchain Against Tax Evasion
May 28, 2018
China’s Internet-giant Tencent cooperates with tax agency of the Shenzhen city trying to use blockchain technology in struggle against tax evasion.
The Shenzhen National Taxation Bureau and Tencent have joined efforts and created an innovative lab “Intelligent Tax” aimed at implementing technological innovations into taxation.
The laboratory is to integrate theoretical studies and latest technologies like cloud calculations, artificial intelligence, blockchain and big data for managing taxation and creating electronic bills.
Reportedly, Shenzhen has got significant underworld economy as customers use fake documents to evade taxation and deceive employers. Finding fake checks is quite a problem for tax collectors, small businesses and governmental units of the country.
As to Tencent CEO and chair of the board Ma Huateng, intelligent tax lab is already developing new digital invoice based on blockchain which is legal digital receipt and a proof for purchased goods and services.
Deputy director at the Shenzhen Municipal Bureau of State Taxation Li Wei said, the primary features for the digital invoice include complete traceability and data security which allows for effective struggle against fake receipts.