World Monitor Magazine WM_5 | Page 14

DESTINATION KAZAKHSTAN Amendments and additions to the tax code of RK In order to solve the current problems of the tax system, defined in the message from the President of Kazakhstan as of 30 November 2015 and 31 January 2017, the government has drafted a new Tax Code. The draft suggests: taxes and other obligatory payments into the state budget, practical implementation of the tax code of the RK, amendments and additions to some tax legislative acts. In the process of reviewing the law drafts at Majilis, the big work has been accomplished with the participation of government representatives, Chamber of Entrepreneurs of Kazakhstan (Atameken), the sectoral associations concerned and public experts. Gulzhana Karagussova, Chairperson of the Finance and Budget Committee of Majilis of RK Deputies of Majilis contributed 1,200 amendments to the tax code draft, which are aimed at refinement and improvement in the draft standards. It was stated that the draft was reviewed by Majilis on 1 November 2017 in the second reading and forwarded to Senate of the Parliament. It should be noted in accordance with the Ministry of National Economy that sectoral associations and entrepreneurs of various spheres of the economy actively participated in composing the draft law. All reasonable business proposals are taken into account as much as possible in the draft code. In general, the draft code provides for changes in ideology, the introduction of incentives and the simplification of administration. The ideology will be aimed at protecting a bona fide taxpayer. Incentives will be given to various sectors of the economy. Administration will become simpler and will motivate the self-payment of taxes. 1 Ideology The ideology is aimed at protecting the interests of a bona fide taxpayer. 12 world monitor 1. All ambiguities and inaccuracies will be interpreted in favor of taxpayers. This principle will allow us to treat tax disputes fairly. 2. It is suggested to apply fines and penalties if the taxpayer acted in accordance with the explanation of the tax authority and on which the position subsequently changed. 3. The requirement for validity of additional charges will be strengthened. Now, acts of tax audits require appropriate justifications. 4. Businesses will be given more time to study legislative changes. The amendments are proposed to be accepted no later than July 1. 5. Protection against numerous amendments appears throughout the year. It is proposed that all amendments to be introduced should be consolidated into one draft law. This will enable businesses to be aware of all changes to the tax code. For the application in practice, the norms for the adoption of amendments require an adaptation period. To this end, the norms are put into effect from 2020.