The state revenue authorities have suppressed a scheme for obtaining unjustified tax benefits based on the use of business reorganization procedures.
During the tax administration conducted by the Department of State Revenue in Astana, it was found that a number of companies used the reorganization not to achieve economic goals, but to artificially generate excess VAT.
13 legal entities participated in the implementation of the scheme. The total amount of violations identified amounted to 2.1 billion tenge.
Tax administration measures have been carried out for all the revealed facts. The legality of the decisions taken by the state revenue authorities has been confirmed by the courts.
To date, the higher court (the Court of Cassation) has considered more than five similar cases. In all cases, the final court decisions were made in favor of the State revenue authorities. The established judicial practice has confirmed the illegality of using the reorganization procedure to obtain unjustified tax benefits.
In order to exclude such schemes, the Tax Code has been amended. From now on, the reorganization of legal entities will be carried out only after passing through tax administration, including desk control or tax audit in cases stipulated by law.
The amendments are aimed at ensuring transparency of the reorganization procedure and creating equal conditions for bona fide taxpayers.
