The city of Shenzhen, located in China, has partnered with internet service provider Tencent to help curb fraudulent and misleading tax behavior. The city’s National Taxation Bureau has set up an ‘Intelligent Tax’ project to help achieve this.
In a statement, Shenzhen officials stated that the Intelligent Tax unit will be using ‘Tencent’s technological advantages in the areas of Internet platform construction, R&D and applications’. Blockchain technology will act as a major component in preventing tax evasion. The blockchain will be used to track and trace documentation such as invoices and receipts, therefore preventing people from forging inaccurate information. The biggest form of tax evasion the city is focusing on comes from the misuse of fapiaos, which are a type of receipt used for goods and services. They are frequently counterfeited.
Tencent commented on this, saying that they hope to ‘make every fapiao checkable, verifiable, reliable and traceable, and use blockchain technology to manage the whole circulation process of fapiaos‘.
This would not be the first time that a government has embraced blockchain technology— recently Kenya announced plans to use the blockchain for the secure purchasing of land. Canada has also shown support for the technology through positive regulations, as has Malta.
Shenzhen’s attitude towards the blockchain could mark a change in China’s stance on cryptocurrency too, this would be a huge step forward as the country is known to be strict with its regulations on ICOs and mining. If Shenzhen and Tencent are successful in reducing the number of fraudulent fapiaos there is a chance that it will prove to the country just how powerful and versatile the technology can be.
Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.