Kazakhstan’s President on tax amnesty before introducing reporting expenses

When speaking at the sitting of the Foreign Investors' Council (FIC), Kazakhstan’s President Nursultan Nazarbayev instructed to draft a law on tax amnesty before June 1, 2014, Tengrinews.kz reports.

“The country’s Central Bank and the Government have been commissioned to draft a law on tax amnesty before June 1”, he said.

“The tax amnesty [enabling people to legalize the title to property they have owned for years without having it duly registered for tax purposes] is a first step towards introduction of reporting of expenses. This measure will help us bring a big share of business out of shadow, bringing us closer to the transparency level reached in developed economies. Shadow economy is the first enemy of sustainable economic development and is a friend of corruption”, President said, reminding that the obligatory reporting of expenses will be introduced January 1, 2017.

“Developed economies only launched obligatory reporting of expenses at the start of the 21st century; thus, we are not lagging behind too much. The global practice is to announce a tax amnesty before introducing the reporting of expenses (…) we need to launch a large-scaled campaign to raise public awareness. Before we introduce the reporting of expenses, everyone has the right to have their property [they have owned for years] duly registered, without having to be afraid of punishment for tax avoidance”, Head of State said.

According to him, the tax amnesty should be in force right to the very introduction of the obligatory reporting of expenses.

“It is a timely measure (…) let’s come to terms (…) we are all fellow countrymen (…) if you conceal owning something, bring your capitals to Kazakhstan and the Government guarantees they will be secure”, President said.

“Why don’t you invest into social infrastructure? Besides, there is a growing demand for housing. Why not invest? It’s no use hiding money”, he said.