Germany’s BMWi To Tackle Tax Fraud With The Applications Of Blockchain Technology
BMWi has revealed that they are planning to use blockchain in their fight against tax fraud.
The Federal Ministry for Economic Affairs and Energy, abbreviated BMWi, is a cabinet-level ministry of the Federal Republic of Germany. It was previously known as the “Ministry of Economy”. It was recreated in 2005 as “Ministry of Economics and Technology” after it had previously been merged with other ministries to form the Federal Ministry for Economics and Labour between 2002 and 2005.
Christian Hirte, the head of the Federal Ministry for Economic Affairs and Energy (BMWi), stated that the use of blockchain would make tax transactions “certainly traceable” at any time.
Various governments are deploying blockchain for the issuance of drivers’ licenses, passports and so on. This goes the show just how diverse the use of blockchain technology is beyond creating cryptocurrencies.
“This could ensure that at any time is certainly traceable, who owns a share,” State Secretary Christian Hirte said on Thursday in Berlin. It follows from the data who was entitled to dividends and was bound for taxes paid or who come into question for tax refunds.
This comes after The CumEx files came to light. The CumEx file was a scheme involving top attorneys, banks and stock traders to obtain funds from European treasuries. This was done through speculation of dividend tax. It is believed that Germany took the biggest hit as a result, with their economy losing $63 Billion.
Notably, earlier this month, the Thai Revenue Department had revealed their plans to strengthen their technological infrastructure with the implementation of DLT and machine learning.