New Blockchain App to counter tax forging in China

The technical mogul, Tencent, is of an opinion that blockchain WeChat Eyes blockchain will end the troubles of company’s expense. It will serve as a compensation of all the due outlays and expense of the employees’ salaries.

App’s first initiation

It has been reported by a blog that was published on Friday that Tencent, conducted this app at a café In China. And through the app WeChat, he showed that how a customer is getting paid for his bill with its present payment service.

The blockchain app helps to solve a lot of problems

Tencent claims that delays in payments are often encountered when the traditional manual system is used as a mode of payment. He believes that with the blockchain app WeChat, things will now get a lot faster and advanced than ever before.

How this process gets faster and more efficient? Well, the information for imbursement need to be inserted through the blockchain framework of the app WeChat rather than using a standard manual device. By this innovative move, the company hopes that the compensation of payments and the problems of payments that have grabbed the prosperity of the company would soon be over. In this way the irritating presence of forged receipt s will get eliminated.

China’s current tax paying mode

At present, China makes use of an intricate mode of payment that entails that dealers give out different payment slips to firms and individuals. So whenever the staff of the company goes out to dinner, in order to compensate for the eating cost, he needs to appeal to only those companies that have accredited their employer’s tax payer number.

So, in order to compensate for their costs, the employees of a specific firm needs to get the dealer write the receipt manually each time. However there is more to stressful and time consuming work. Along with the typing by hand for the receipts, the additional tasks of filing the claim and collecting slips of request prior the repayment is very hectic.

The new game

So, the initial round of dealers who have implemented this new blockchain app in their system has also made some new far reaching insertions. With this system they have also introduced a parking lot at the Shenzhen Stadium ,a car repair hub and an eating outlet all headed by Tencent.

Tencent has also joined hand with Shenzhen government in order to deal with the recent problem that grapples the country prosperity and that is the tax circumvention.

It has been made a perquisite in china that all the dealer before entering in to any transactions need to obtain a slip. This purpose of these request slips known as Fapiao is that the authorities have made mandatory upon the merchants that they need to pay tax in advance before conducting any transaction.

As the tax authorities give up the tax request slips to the customers what the merchants need to do is that they calculate the net amount. The net amount is calculated through the subtraction of amount prior payments and the amount of real tax inclusion from sales purchase. The end result would pave way for payments of tax in the next batch.

Nevertheless, in China forged payment receipts of tax is eating away the prosperity of the country. The blame goes to the merchants who want to dodge the tax paying to the country.

In the nutshell

Keeping the current tax evading situation of China in mind, Tencent is highly optimistic of the new blockchain app. He believes that this will end all the issues regarding forged receipts of tax by a tracking system that is facilitated through the app. This app will not only track the forging but will also keep record of all the tax payments to the tax authorities through a digital, paperless system. News Wire & Equity Research: +31 084-0032-842

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