China's taxman is going after fake claims with Tencent blockchain invoices

For unscrupulous businesses attempting to take advantage of tax loopholes in China, the sellers of fake receipts on the mainland usually know the way. 

One such seller, who calls herself Mrs Wang, claims she can provide a faked official invoice – the legal proof of payment called fapiao in Chinese – in 24 hours and guarantee that it will be verified by the country's tax system. She charges two per cent of the fake receipt’s face value after it is verified.

“Let me know your company name, the amount of money and the sales item. I can have it ready and mail it to you tomorrow,” Wang said.

The days of Mrs Wang’s counterfeit receipt business could be numbered, as China employs blockchain technology in its fight against tax evasion.

Chinese internet giant Tencent Holdings has teamed up with the Shenzhen branch of the State Administration of Taxation in a blockchain-enabled digital invoice solution, designed to protect the authenticity of invoices by tracking the process of issuance and circulation.