Chinese web giant Tencent Holdings has collaborated with the Shenzhen branch of the State Administration of Taxation in a blockchain-empowered computerized invoice arrangement, intended to ensure the legitimacy of invoices by following the procedure of issuance and dissemination.
Tencent Holdings Working With Blockchain Technology
According to Tencent’s chairman and chief executive, Pony Ma Huateng, this solution represents the first utilization of blockchain innovation in the treatment of digital invoices in China.
Mr. Huateng explained:
“We hope to make every fapiao checkable, verifiable, reliable and traceable, and use blockchain technology to manage the whole circulation process of fapiaos.”
China Central Television reported that about 18,000 cases of fraudulent issuance of digital invoices were recorded by China’s public security authorities last year and this amounted to over 300 billion yuan.
Detection of manipulated or forged digital invoices and receipts have been a significant challenge to the Chinese tax collectors because buyers repeatedly make use of falsified paper works to evade taxes while defrauding the system.
The project whose research is on making use of blockchain technology in digital invoicing is the first of its kind in the Asian nation, and it will be based on Tencent’s blockchain platform that was earlier announced in April. This is also a significant introduction to solving other challenges encountered by the Chinese commerce sector.
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