Emerging technologies like blockchain have brought in a major change in the operational processes of various domains. However, it has kept away from some domains which directly come under government jurisdiction, one such area is the tax. The blockchain is now making an entry in the tax domain of Thailand which will begin using this future technology for the verification of taxes along with a quick refund process.
The kingdom of Thailand has been facing severe issues from their revenue department which is combating tax evasion and fraud since quite a long time. The new step is likely to curb the problems of tax avoidance as the concerned department will be employing machine learning and blockchain learning for the officials to monitor the entire process.
Thailand’s revenue department is undergoing several blockchain tests to track value-added taxes aka VAT payments in their systems. A successful integration of blockchain in the tax system will make Thailand the first country ever to use distributed ledger for probing tax and related matters. In addition to this, emerging technologies like blockchain will help in preventing VAT refund fraud and also it can accurately verify VAT invoices rooting out the fake ones as mentioned by Bangkok Post.
Their director-general Ekniti Nitithanprapas stated that the revenue department is looking forward to adopting latest technologies like machine learning and distributed ledger to combat tax-cheating practices and compelling citizen’s, to begin with, the formal tax system.
Thailand – Crypto And Blockchain Friendly Country
Thailand is one of the first countries that have embraced both crypto and blockchain trade in a lawful way. According to Asian Times, the government has imposed a 15% capital gains tax on the profits obtained from crypto trade. Thailand government has been pro-actively adopting emerging technologies and digitizing their revenue departments which will make their entire system more enhanced and efficient.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]