Chile plans to use Blockchain to collect taxes

Of& nbspJoyce Joseph

The Department of the Treasury of Chile has designed to incorporate the blockchain into its tax collection system. This decision was made after examining the losses incurred during the transaction processes related to the collection of taxes.

Furthermore, such an implementation can help the department simplify the process of tax collection. When citizens pay taxes, the money is transferred to the municipality through the banks.

The Treasury Department receives transaction details only at the end of the month. Since then, much information is lost in the way. The involvement of three different organizations operating in different ways creates complexity and confusion.

Implementing the Blockchain technology, the Treasury Department plans to create an automatic quadrature system that will accommodate multiple nodes. These nodes will store transaction information and will be incorruptible.

Any kind of interference with the information will be detected in no time and the other blocks will immediately reject this type of action.

The transactions will be stored in a block. This block stores transaction information along with details of the address of the previous document. It will generate a chain of blocks containing the information of that particular user. Once the blocks are created, each node receives it. This guarantees transparency and will eliminate any improper play.

Ximena Hernández, Treasurer of the General Treasury of the Republic quoted:

"Digital Transformation is a tremendous opportunity that the General Treasury of the Republic has, for our role, our mission and the quality of service we need to provide our users who pay taxes and our officials. Digital Transformation will allow us to be much more efficient, more effective, to have greater proximity to our taxpayers and therefore also to our users themselves.We will be able to offer a better service.Technology is present and must be used, but this implies that we have to manage changes, break the paradigms.The digital government team supports us, we have four projects, starting with blockchain, which will allow us to track all operations, information security "

The blockchain introduced in the tax collection system is a positive sign that governments are integrating technology into their processes.

Joyce Joseph

He is an engineer with the desire to become the next Shakespeare. Follow it and you'll know why!