The German Federal Ministry for Economic Affairs and Energy is currently contemplating blockchain usage in combating tax evasion schemes.
Adhering to the significant European tax fraud scheme CumEx-Files, the BMWi has indicated that distributed ledger technology (DLT) is capable of making the tax system more efficient concerning fraud prevention.Discovered from 2017, the CumEx-Files was a tax fraud scheme that allegedly was used by a community of banking, stock traders and leading lawyers to obtain billions from European treasuries through speculation with dividend tax. As a result of the CumEx scheme, the German market has allegedly suffered the most, together with around $63 billion in documented losses.The Parliamentary State Secretary at the BMWi Christian Hirte stated that blockchain technology deployment “might guarantee ” this tax shares are “surely traceable” at “some time. ”According to the Federal Ministry of Finance, more than $5 billion was washed through the German tax law loophole alone before 2012. Earlier in November, the Thai Revenue Department revealed plans to track tax payments using DLT and machine learning, specifically intending to confirm tax deductions legitimacy and to accelerate the tax refund process.Previously, Cointelegraph reported on tax program company Vertex implying that governments implement blockchain to improve tax systems. […]