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The Federal German Federal Ministry wants to fight tax fraud with Blockchain

The German Federal Ministry of Economic Affairs and Energy (BMWi) is planning to fight tax evasion schemes using blockchain, the German newspaper WirtschaftsWoche, on 22 November.

Following the main CumEx-Files European tax fraud scheme, BMWi has suggested that distributed ledger technology (DLP) is able to make the tax system more efficient in terms of fraud prevention.

Discovered in 2017, CumEx-Files was a scheme of tax fraud that, according to reports, was used by a network of high-level banks, stock traders and lawyers to obtain billions from European treasuries by speculating with the tax on dividends. As a result of the CumEx program, according to reports, the German economy suffered more, with at least about $ 63 billion of reported losses.

The parliamentary state secretary at the BMWi Christian Hirte said that the use of blockchain technology "could guarantee" that fiscal actions are "certainly traceable" in "any time".

According to the Federal Ministry of Finance, over $ 5 billion was washed through the loophole of the German tax regulation only before 2012.

At the beginning of November, the Inland Revenue Department of Thailand revealed plans to track tax payments using DLT and machine learning, in particular to verify the validity of tax payments and to speed up the process of reimbursement of taxes.

Previously, Cointelegraph reported on the Vertex tax software company suggesting that governments implement blockchain to improve tax systems.

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