Tencent Holdings, a Chinese multinational investment holding company, is now spreading their wings to the blockchain technology to help the Chinese city of Shenzhen. The city faces a lot of malpractices and frauds when it comes to legal billing and taxation. This will help them fight the fake invoices and prevent businesses from taking advantage of tax drawbacks.
Tencent specializes in various Internet-related services and products, AI and technology in China as well as globally. They are the innovators of Tencent games, WeChat, Supercell and many more trended software.
They have teamed up with the Shenzhen branch of the State Administration of Taxation. According to a report from the South China Morning Post, the duo is hoping that the use of the blockchain will guard the authenticity of invoices.
“We hope to make every fapiao checkable, verifiable, reliable and traceable, and use blockchain technology to manage the whole circulation process of fapiaos.”
The loot in China on these fake bills has reached a level where sellers of fake receipts on the mainland usually know the way out if they are in trouble. One such seller, who calls herself Mrs. Wang, claims that she can provide a fake official invoice. She says:
“Let me know your company name, the amount of money and the sales item. I can have it ready and mail it to you tomorrow.”
The initial applications of this distributed ledger technology outside cryptocurrencies have included post-trade settlements, record checking and management, and cross-border fund transfers. The ability to trace official invoice information on the Tencent-developed blockchain solution can improve the government’s surveillance procedure against counterfeit fapiao is what the duo believes.
Tencent said that blockchain solution would be incorporated into the Mini Program platform of WeChat, the company’s popular messaging-social-media-and-payments app with more than 1 billion users. It would also be included in the enterprise version of WeChat, according to Tencent’s Ma as per recorded in South China morning posts article.
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