Mon. Feb 18th, 2019

German Financial Ministry to Combat Tax Fraud using Blockchain

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Nov 24

 

The German Federal Ministry for Economic Affairs and Energy (BMWi) intend on using Blockchain technology to combat Tax Evasion schemes. After the major European Tax Fraud scheme CumEx-Files, BMWi asserts that Distributed Ledger Technology (DLT) is capable of making the tax system more efficient in terms of fraud prevention.

Discovered in 2017, the CumEx-Files was a tax fraud scheme that reportedly was used by a network of banks, stock traders and top lawyers to obtain billions from European treasuries through speculation with dividend tax. As a result of the CumEx scheme, the German economy has reportedly suffered the most, with at least around $63 billion in reported losses.

The Parliamentary State Secretary at the BMWi Christian Hirte stated that blockchain technology deployment “could ensure” that tax shares are “certainly traceable” at “any time.”

Earlier in November, the Thai Revenue Department revealed plans to track tax payments using DLT and machine learning, specifically intending to verify tax payments validity and to accelerate the tax refund process.

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