The Chinese government plans on using blockchain technology for taxation and issuing electronic invoices, CoinFox reported.
The government has included the technology in its “Thirteenth Five-Year” National Informatization Plan. First reported by Bitcoinist in December 2016, the government said at the time that blockchain technology is one of the areas to be strengthened in the future.
According to a recent update from miaocaiwang.com, the government has confirmed that “it will utilize blockchain technology for social taxation and electronic invoice issuance matters.”
Miaocai Network, a state-sanctioned electronic taxation and invoicing enterprise, has announced that it has been actively exploring the potential of blockchain technology in fiscal and taxation business. It has entered into a strategic agreement with blockchain tech company Shenzhen ChainHold Technology Investment CO., on joint research and development based on the government chain of fiscal and taxation applications.
“[This] the first international financial and taxation business actually landed in the blockchain project, will further consolidate the network in China and the international industry in the leading edge”, the announcement reads.
Shenzhen ChainHold is developing GACHAIN and has test-run a network. It is expected to launch v0.01 in October 2017.
“It’s safe to say that GACHAIN is a sovereign blockchain that puts the decision making and regulatory rights into the hands of the government, meanwhile enabling every citizen to control his digital assets in GACHAIN. This will facilitate Chinese government control over blockchain projects and ICO,” ChainHold CEO Lin Wan explained.
“China’s tax collecting procedures feature slow tax reporting times and insufficient coordination. By making use of the unrivaled advantages of blockchain technology, together with the GACHAIN team, we are integrating core finance and tax business (such as social tax collection and electronic invoices) into GACHAIN, and by taking advantage of GACHAIN’s ability to regulate, trace back, and circulate documents easily, prevent falsification, high rate of concurrency, and external interface benefits, we can cover the entire process workflow from electronic invoice generation through the end of the process without increasing costs for those involved,” Chairman of Miaocai Network, Jie Du, said (as quoted by CoinFox).
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