There are many different institutions around the world that are starting to embrace blockchain technology and improve their services and products. This time, Bangkok’s revenue department will be using distributed ledger technology (DLT) so as to prevent tax evasion.
During the last years, with the growth of virtual currencies, some countries are having trouble to tax crypto profits. Individuals are not declaring all the funds they have on their accounts or the funds that they were able to make trading virtual currencies.
Nevertheless, blockchain technology can be used by governments to enhance their surveillance on citizens and prevent tax evasion and money laundering issues. According to an official statement released by the director-general Ekniti Nitithanprapas, blockchain technology will allow the government to be sure that taxes have been correctly paid.
The agency would not only be working with blockchain technology but it will also use machine learning to show the common ways used by individuals to avoid paying taxes. In the past, Mr. Nitithanprapas stated that the implementation of new technologies was on his list of priorities.
According to the finance permanent secretary Prasong Poontaneat, reliable financial accounts are a tool for business operators to be trusted and more competitive in the market.
Governments are embracing blockchain technology not only for tax purposes but primarily to reduce the administrative tasks they have. DLT can be used to enhance different processes and reduce paperwork, allowing some agencies to be more productive. Governmental agencies tend to manage a large amount of information and data, and blockchain technology has the potential to help governments to improve services.
It is also possible to improve transparency and security in different areas. In Argentina, a province will be working with blockchain technology to increase citizens’ trust in the public government. Bureaucracy can be reduced and files will be tracked and registered on the blockchain.