One of the most attractive features that the blockchain tech has to offer the world is its potential to fight the menace of fraud that is, in fact plaguing several industries. And Thailand is ready to put the blockchain tech to a test, as a government agency in the country is carrying out trials with the technology to track value added tax (VAT) payments in the country, which is a consumption tax of sorts, levied goods and services.
According to the Bangkok Post’s report, the Revenue Department of Thailand is really looking to blockchain tech for the prevention of fraudulent VAT refund claims. The Director General of the department, Ekniti Nitithanprapas ardently believes in the potential of the blockchain tech to help eliminate VAT invoices that are not genuine, through the process of verification.
In addition to that, word on the street is that the agency also has plans to tap other emerging technologies in addition to the distributed ledger tech, like machine learning, artificial intelligence and Big Data, particularly for the purpose of preventing tax evasion and fraud.
Tax evasion is one of the most consistent problems that the governments around the world have to face. And in hopes that the blockchain technology could help solve that problem, they are willing to give it a shot.
China’s tax authority made a similar move, to that of Thailand, back in May. When the Shenzhen National Taxation Bureau struck a partnership with Tencent, the Internet giant, in order to leverage the blockchain tech in the fight against tax evasion.
The aim of that project was to create digital invoices on a blockchain platform, which would serve as a proof of purchase for goods and services. This was again to battle fake invoices, and to improve the whole process of invoice supervision.
Coming back to Thailand, it seems to be adapting and embracing the blockchain technology in other areas as well. Even the country’s central bank, the Bank of Thailand, decided to take a swing at it, when it revealed that it was carrying out trials of its very own cryptocurrency, which was aimed at making the process of interbank transactions both efficient and economical. This was back in June.
Furthermore, in July, the Thailand Bond Market Association, which is a self-regulatory organization, announced that it had a private blockchain system in the pipeline. The aim of which, would be to speed up the corporate bond settlement in the country.