In Order To Tackle Tax Avoidance,Thailand Government Will Employ Blockchain Solution
Adding another interesting feather to Blockchain’s use case the government of Thailand has decided to involve the distributed ledger technology to form a transparent system that will aid them in fighting tax avoidance.
The Director-general Ekniti Nitithanprapas stated that the Revenue Department plans to utilize blockchain solutions to verify whether the taxes paid are correct or not, the solution will also speed up the tax refund process. The Bangkok Post reported, that the head of the Revenue Department of Thailand believes that disruptive technologies such as blockchain and machine learning could really improve the Tax Collection System.
Blockchain will be employed to verify taxes and speed up tax refunds, whereas machine learning will aid in fighting against tax evasion as it can track tax fraud and create more transparency.
Over the years Thailand has welcomed the blockchain technology and cryptocurrencies with open arms. In terms of taxing the virtual assets, the government of Thailand collects 15 percent capital gains tax levied against profits achieved form buying and selling of the virtual assets. A 7% value-added tax also implies, bit as per Apisak Tantivorawong, the government’s Finance Minister, most investors are exempted from it.
Just a few months back the country’s Securities and Exchange Commission (SEC) evolved a regulatory framework for initial coin offerings (ICOs), that went into effect from July 16, 2018. Before putting digital assets on sale, the token issuers must be registered with the Thailand SEC.
According to the Thai regulator, only high net-worth investors, venture capital firms, private equity companies, and other institutional investors have access to unlimited units of digital assets in ICOs. As for retail investors there limit for buying tokens is less than 300,000 baht ($9,050).
After these new ICO rules were implemented the SEC reported that out of 50 prospective initial coin offerings, who have shown interest in securing a license, only 3 of them have followed through with an application. The SEC secretary-general Rapee Sucharitakul added that approximately 20 companies have filed an application to operate officially as a digital asset exchange. One of the approved operators is Bithumb, one of the world’s largest cryptocurrency operators.
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