The revenue department of the Ministry of Finance of Thailand plans to use blockchain to combat tax evasion.
The office will apply a distributed register technology to track tax payments and speed up the process of recovering damages. Representatives of the department also clarified that they are going to use machine learning algorithms to identify ways of tax evasion and to notify the officials about this.
Thus, modern technologies will help identify tax fraud and make all processes as transparent as possible. Therefore, officials view the introduction of blockchain and other innovations into the tax collection system as one of the priority areas for the development of the department.
On the whole, Thailand is one of the most open countries to cryptocurrencies and distributed ledger technology. Earlier, the country's central bank allowed financial institutions, including commercial banks and their subsidiaries, to conduct cryptocurrency activities. However, the SEC still prohibits commercial banks to carry out cryptocurrency transactions. That is, Thai banks can buy or sell digital assets, but they are not allowed to purchase anything for them.
The Bank of Thailand has also announced the launch of Project Inthanon. This is an initiative aimed at creating own digital currency. The financial institution has joined forces with eight partner banks and is starting to create a prototype solution that will be based on the Corda technology created by the R3 consortium. The project provides for the creation of tokens with which the money transfers in the country can be carried out using the interbank system.
Also, the leading banks of the Asian country united to create the Thailand Blockchain Community Initiative, which will digitize guarantee letters on a common blockchain platform. In Thailand, the issuance of warranty letters that reinforce customer payment obligations may take several days. Therefore, the digitization process, which significantly speeds up this operation, is very important for local financial institutions.
Thailand is on the path of cryptocurrency and initial coin offering (ICO) legalization. The SEC has created special rules for regulating this area. The Commission put forward a number of requirements for the ICO, which they must comply with, but this gave the project an opportunity to get out of the shadows and officially become part of the financial ecosystem.
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