Blockchain to be used in China For Government Audits

The National Audit of the People’s Republic of China expects that blockchain technology can become a way to improve government auditing functions
26 April 2018   470

As claimed in the article named “Some Ideas on Applying ‘Blockchain’ Technology in Big Data”, the blockchain part of the stock market has grown 19.95% for eight straight days this year, displaying blockchain using opportunity. The technology is able to  improve data storage, management, transmission and other work functions for data audits. The article suggests an overview about blockchain technology, stating that its features decentralized computing and time stamping services such as recognizing textual information based on time sequence and the constant data saving. 

The current auditing data system reckons on centralized storage, according to the article. Accredited agencies gather the data to do their audits, then upload it to a data center. Although the method has a high level of security, it is determined to result in “infinite expansion” of data center hardware and software requirements. The 19th Party Congress stated the goals for using science and technology, including the integration of the Internet, big data and artificial intelligence. General Secretary Xi Jinping called for taking the initiative with using big data. 

Nevertheless, in the audit area, big data apps stay in an environment in which data usage operations are cumbersome to administer, management is complex. On-site auditors, the article noted, are not convenient. 

Blockchain based distributed accounting and keeping don`t  demand centralized hardware or management organization, the article mentioned. Each agency can found data backup points, collect and manage data. The audit office data center will only store the timestamp the auditor uses and control the confidentiality, reliability and legality of the audit app. 

The audits will be based on blockchain data structures that will keep and check up data, use consensus algorithms to create and update data, and involve encryption and decryption algorithms to secure data transmissions.

Bithumb Filed Appeal Against Korean Tax Office

Looks like the korean exchange doesn't really want to pay an additional tax worth $67 000 000
16 January 2020   124

The South Korean cryptocurrency exchange Bithumb has filed a complaint against the National Tax Service (NTS) because of the requirement to pay additional taxes for the transactions of its foreign customers.

The company claims that cryptocurrencies do not have an official status in the territory of South Korea, which is why the authorities cannot have sufficient reasons to levy any taxes.

The tax court will have to decide within 90 days whether to retain or withdraw from Bithumb the obligation to pay the $ 69.1 million tax that was assigned to it by NTS in November. The Office declares that the withdrawal of income from accounts in Korean won by foreign residents is a taxable event. It is assumed that the exchange itself had to withhold tax from its foreign customers.

We paid the full amount and have since been preparing for arguments. We believe we will be given a chance to clarify our stance in court.

 

Bithumb

 The ministry has its own position on this issue.

Bitcoin under the current law is not an asset. It is clear and simple. The Ministry of Economy and Finance already made that clear. The NTS pushing ahead with the tax imposition is baseless and groundless, especially since it is still awaiting the ministry opinion on the same matter it sought again.

 

Choi Hwoa-in

Adviser to Financial Supervisory Service

According to the expert, the NTS maneuver is well thought out and aimed at starting to levy a tax on income that is currently not taxable.

We cannot comment on the ongoing matter. We will await the judgment from the Tax Tribunal.

 

NTS

Earlier, Bithumb was ordered to pay an additional $ 67 million in tax.