UK based Xcordis has launched its Auto-Tax technology today to remove inefficiencies and reduce opportunities for graft and dodging. Their application is said to offer a full audit trail from collection to distribution and is designed to tackle a pressing problem in the developing world: corrupt tax collectors.
Xcordis explains that distribution of smaller tax receipts is far from open and honest as well with many unwelcome levels of corruption attached to the government spend, leading to less available money to help the poor. For developing countries the service is said to be free of charge that will use part of the receipts to directly help alleviate poverty in their own country.
“We have developed a solution to reduce graft by utilising an automated financial technology tool,” states Robert Atkin, CEO of Xcordis. “Deploying our Auto-Tax the sales tax on all eCommerce can be automatically paid to the tax collector as part of each individual transaction and the government can then optionally automatically distribute funds directly to designated projects and departments.”
“By gradually introducing the process, perhaps by industry vertical, rather than the big bang process, you can improve success rates until the old corrupt methods of collection are consigned to history.”
The application provides a full audit trail from collection to distribution thereby providing full transparency of the tax collection process. Xcordis posits that countries may want to reduced tax rates as an incentive first – making up any difference via the improved efficiency. Tax collection can be a touchy subject. Few enjoy paying up but receipts pay for public services demanded by citizen’s. Xcordis may help tackle the free-rider enigma by making those pay as who are inclined to dodge.
Xcordis is a member of Innovate Finance, an entity that advocates on behalf of emerging financial technology in the UK.