Specifically, the Thai Department of Special Taxes will develop an excellent method of refunding overpaid taxes to oil experts using block chain technology. This was announced in Bangkok on 25 November.
According to the publication, the department plans to adopt a change in tax refund practice in the middle of next year. This is how Patchara Anuntasilpa, the general manager, spoke.
Method of reimbursement of overpaid taxes
The technology-based tax refund chain system requires oil exporters to pay special taxes to the department and to demand overpaid taxes after the fuel has been shipped, the director said. Thanks to this new technology, the department will be able to verify that the tax payments have been made in full. At the moment, oil exporters have to submit documents for tax exemption, and the inspection is not as thorough as it could be,” Patchara said.
He also explained that the tax refund process would take less time if oil exporters submitted both correct and complete documentation.
In addition, according to this article, the department is conducting serious talks with KTB Krungthai Bank. What are the talks about? The talks concern the configuration of the tax refund system, which is based on block chains.
On the one hand, the source that asked for anonymity and belonged to the oil trade circles said that the exemption from special taxes on oil exports alone amounts to as much as six billion baths a year, and that the new practice could generate greater costs for businesses if the process of tax refund by the debt collection agency itself is long.
Blockchain-based tax refund system for oil exporters
This source says that all oil exporters want the department itself to create a system that can quickly refund taxes. In fact, according to the publication.
On the other hand, another source that is linked to the department stated that this change to the tax refund system would enable the department to better control tax payments and prevent smuggling of oil exported for local sale by operators.
The Special Taxes Department joined KTB to implement block chain technology to update the services of the digital platform, enhancing security and also allowing fast and accurate access to data, improving services in a more transparent and efficient way, as explained in the second source.
He also explained that it is very possible to check all processes at any point in any supply chain where technology intervenes to speed up the control process and also allows for immediate verification. The tax refund system is estimated to be based on a block chain. It triples the speed of the process and also effectively reduces tax spills on oil exports alone. This is the result of the publication.
In this way, block chain technology will improve the efficiency of data management itself, because processes can be verified accurately, based on the fact that oil is transported to warehouses from refineries and, finally, to countries of destination, according to the article.
This would not be the first time that an oil industry block chain has been used. In July Repsol announced that blockchain technology would apply to the certification of petrochemical processes to achieve much greater efficiency in the supply chains of its own products.
We must also remind you that Repsol is precisely part of a consortium called OOC Oil & Gas block chain Consortium, which intends to review the concept itself with this innovative technology in 2019. Besides contributing to the adoption of global block chain technology, as we already announced in March.
In their statement, they also indicated that the consortium in the OOC (Committee of Maritime Operators) resides in and also consists of the following founding companies: Chevron, ExxonMobil, Hess, Repsol, Equinor, ConocoPhillips and Pioneer Natural Resources.