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19.02.2020

More Kazakh businessmen dissatisfied with tax officials’ work

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The deputy reminded that the country does not have a clear methodology for defining fictitious transactions.

In Kazakhstan, the number of lawsuits to invalidate the transactions has increased nine times in three years, LS reports.

According to the Mazhilis deputy Yerlan Barlybayev, the number of entrepreneurs dissatisfied with the unjustified sanctions of tax officials has increased.

"The number of lawsuits for the recognition of transactions as invalid has increased ninefold over the past three years and is now counted in thousands. At the same time, there are cases when judges have protected entrepreneurs less than 1%. For comparison, when a dispute is considered by the Appeals Commission of the Ministry of Finance, it supports business in 32% of disputes," he said.

However, the tax authorities lack a clear methodology for determining the effectiveness of transactions, the MP continued.

"They just chase cases when an entrepreneur allegedly does not have enough assets to fulfill a contract and add taxes along the chain even on their wealthy counterparties. Such approaches are laid down not in the Tax Code, but in the Supreme Court Ruling № 4 dated July 29, 2017. According to the document, tax officials have the right to invalidate transactions at their discretion. As a result, even when an entrepreneur presents such evidence as erected buildings and constructed roads, delivered goods, the tax authorities simply ignore them," said Barlybaev. 

He is sure that this approach is directed against small and medium businesses, which are forced to save money and attract equipment and workers for specific tasks.

"Moreover, according to businessmen, this instrument has become a convenient way to extort business. We are sympathetic to the desire of government agencies to stop criminal schemes and punish fraudsters. But we believe it is essential to protect the scrupulous business. After all, a company that has been successfully operating for many years and creating jobs is under pressure," the deputy said.

He asked whether it is profitable for the state to purposefully ruin those who have provided hundreds of people with jobs and pay millions of tenge to the budget?

"We ask you to instruct the State Revenue Committee to suspend the filing of such claims in court or send them to the Appeal Commission of the Ministry of Finance until the criteria for the effectiveness of transactions are developed. We ask the Prosecutor General's Office to study the possibility of making a protest in defense of entrepreneurs according to the existing court decisions," he concluded.

Earlier, it was reported that tax revenues to the budget decreased in Kazakhstan. Also, the Ministry of National Economy presented proposals for new tax changes.

Jamilya Karimova

Source: https://lsm.kz/mazhilismeny-prosyat-priostanovit-spory-predprinimatelej-po-fiktivnym-sdelkam

© LS

«...Domestic business, the so-called national bourgeoisie, should be supported in every possible way, and those who prevent its development by unreasonable inspections, extortions, raids should be strictly punished...»

Statement from the President of Kazakhstan Kassym-Jomart Tokayev at an enlarged meeting of the Government on 15 July 2019

Zhursunov R.M.

Ombudsman for the Protection of the rights of Entrepreneurs of RK

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