Tech giant Tencent thinks blockchain can speed up reimbursement of expenses for company employees and it's trialing a feature on its WeChat app to do just that.
According to a blog post published on Friday, Tencent has piloted the application at a local restaurant in Shenzhen, China, where a user paid the bill through its existing payments service WeChat Pay.
By feeding the payment data over its blockchain platform to the user's employer, the restaurant and Shenzhen's local taxation authority, Tencent said delays normally encountered via the standard manual claims process are eliminated.
The company hopes its system will eventually find use in streamlining and hastening the expense reimbursement process, while also reducing the prevalence of falsified receipts.
Currently, China employs a somewhat complex system whereby merchants issue different payment receipts for individuals and firms.
When staff need to be reimbursed for dining expenses they must request a receipt for companies listing the exact taxpayer number of their employer.
In order to do that, employees need to have the merchant manually type in the taxpayer number on the receipt in every instance.
In China, merchants are required to purchase a number of receipts - known as fapiao - from the authorities to act as advance tax payments prior to any sales.
As they issue receipts to customers, merchants must calculate the difference between the prepaid amount and the actual tax arising from sales to provide a basis for the next round of tax payments.
Falsified receipts are common in China as a means of tax evasion.
WeChat Eyes Blockchain for Faster Refunds of Company Expenses
Published on Aug 10, 2018
by Coindesk | Published on Coinage
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