The Commissioner for the Protection of the rights of entrepreneurs of Kazakhstan Bolat Palymbetov paid a working visit to the Kostanay region on 7^th of July 2016.

Within the frames of the meeting with entrepreneurs of the region, the Directorate of the Chamber of Entrepreneurs of the Kostanay region reported on the outcome of work within the line of protection of the rights and lawful interests of business entities.

In particular, within 6 months of this year the Chamber has received 106 complaints from the entrepreneurs (the same period of 2015 - 85 complaints, in 2014 - 129).

The major part of the complaints are related to the decisions and actions of the tax authorities, issues of state procurement, land relations, construction and actions of subjects of natural monopolies.

The most pressing problem is presentation by the  Regional State Revenue Department of notices on payment of additional tax in connection with the recognition as invalid of registrations of legal entities in the court, with each entrepreneurs had previously concluded transactions. Entrepreneurs learn about court ruling only from the tax authorities and they can’t appeal, as the courts refuse it. As a result, bona fide entrepreneurs can’t exercise their constitutional right for to judicial protection and to prove their innocence.

Another systemic problem faced by entrepreneurs of the Kostanay region is actions of the Kostanay Branch of JSC "KazTransGas Aimak".  In particular, the claims of the monopolist on the so-called "lost profits", as a compensation for non-purchase of the initially stated volumes of gas. If the entrepreneur has consumed less cubes than originally stated, then the entrepreneurs has to pay penalty for unused volume of gas. Currently, at the initiative of the Chamber, the antitrust authorities study the case.

In most cases, to address the systemic problems of business, the experts of the Chamber interact with the regional prosecutor's office. As a result - 36 acts of prosecutorial response were issued, 23 officers were brought to disciplinary responsibility.

During the work the experts of the Chamber participated in 50 trials, in half of the cases positive court ruling were issued.

In total, according to the results of consideration of the appeals by the Regional Chamber, 41 problematic issues have been resolved in favor of entrepreneurs in 2016. The economic impact amounted to about 900 million tenge.

During this period, 70 barriers were detected, half of which is eliminated.

In particular, the illegal demand of the Department of Land Relations regarding  the need to agree the borders of a land plot with the Department of Architecture, when getting authorization for construction at a land plot (which entailed time and financial costs for business), was eliminated; the problem of advertising business of Kostanay was resolved, which couldn’t obtain land plots for advertising structures for a long time; there were eliminated barriers, which have been identified in the course of public monitoring of public services, such as violation of terms of services, additional requirement, which are not stipulated by standards, reduction of deadline for submission of documents.

During the conference, the entrepreneurs of the region were able to pose questions to Bolat Palymbetovu, each of which was taken under the control of the Business Ombudsman for further resolution.

Reference: On 29^th of December 2014 the Law "On the National Chamber of Entrepreneurs of Kazakhstan" was amended with the norm on the legal status, functions, and duties of the appointment of a Business Ombudsman, as well as the organization of his activities. On 1^st of January 2016 entered into force the Entrepreneurial Code, the Chapter 28 of which discloses in detail the legal status of a Business Ombudsman.  Bolat Palymbetov Abylkasymovich was appointed the Commissioner for the Protection of the Rights of Entrepreneurs of Kazakhstan on 19^th of February 2016 by the Presidential Decree.

The Commissioner is appointed by the Head of State and is accountable only to the President. Nobody has the right to impose functions, which are not provided by the Entrepreneurial Code on the Business Ombudsman for the Protection of the Rights of Entrepreneurs of Kazakhstan. No illegal interference in his activities is allowed.

The main functions of the Business Ombudsman include performance, security, protection of the rights and legitimate interests of entrepreneurs and consideration of their appeals. All appeal addressed to the Commissioner are recorded and the administrative office of the Business Ombudsman works on them. No appeal is left without its legal study and response.