Authorities in the Chinese city of Shenzhen, together with the FINTECH company Tencent Holdings will use the technology of the blockchain to prevent fraud in the tax area.
According to the statement issued by the Office of the state tax service of Shenzhen, the translation of the blockchain «Fapiao» – the document issued as official confirmation of payment for goods and services and is used by the Chinese authorities for tax control will allow you to track their shipment and verify the payment for them (by law all companies are required to provide a Fapiao immediately after the payment of goods or services).
This step is considered in the framework of the initiative for the creation of Innovative laboratory «Intellectual tax», which aims to modernize the tax system as a whole and to develop measures of state supervision in respect of fraudulent invoices, which in turn will allow to solve the problem with the Fapiao, which is used by unscrupulous citizens to evade taxes or to demand compensation for products or services that allegedly were not delivered.
«Digital invoice, based on the technology of the blockchain, will fully observe the entire process and be confident in the immutability information. This will prevent the spread of fraudulent invoices and improve the oversight process for valid», – said the Deputy Director of the Municipal Bureau of state taxation of Shenzhen Li Wei.