Thai Revenue Department taps blockchain technology to fight VAT refund fraud
Thai Revenue Department Director-general Ekniti Nitithanprapas
Tue, 04 Dec 2018, 09:20 am UTC
Thailand’s Revenue Department is trialing blockchain technology to track value-added tax (VAT) payments, Bangkok Post reported.
The test is being conducted in the department’s innovation lab.
Director-general Ekniti Nitithanprapas said that the trial aims to prevent VAT refund fraud by using blockchain technology. He explained that by leveraging blockchain technology to verify VAT invoices, they would be able to better identify fake invoices for VAT claims.
For instance, when a company, say ABC, buys a product from a second company, XYZ, then ABC will issue VAT invoices to XYZ. Blockchain technology will allow both firms to confirm the transactions.
In addition to blockchain technology, the Revenue Department is also seeking to tap other cutting-edge technologies such as machine learning and using artificial intelligence to prevent tax evasion and fraud.
Ekniti said that the department aims to learn about tax-cheating practices to efficiently examine tax payments and bring more people to the formal tax system.
In October, the Bank of Thailand (BoT) announced that it has initiated a pilot of the DLT Scripless Bond Project that utilizes blockchain technology.
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