Prime Minister Olzhas Bektenov has urged entrepreneurs to pay fair tax amounts within two weeks. The Prime Minister stated that despite billion-dollar revenues, companies are contributing amounts to the budget that do not reflect their profits. Among these are large well-known construction firms such as BI Group, BAZIS, and many others.
The Ministry of Finance has initiated an audit as part of the analysis of settlements between entities applying special tax regimes and companies operating under the general tax system for the years 2022 and 2023.
The revenue authorities sent notifications regarding the understatement of taxable income for BI Group amounting to 11.9 billion tenge, and for BAZIS amounting to 4.6 billion tenge. The analysis revealed that these companies are utilizing the special tax regime to reduce their tax payments.
The Ministry of Finance explained that the desk audit procedure allows taxpayers to independently adjust their income and pay taxes without undergoing an inspection.
In response to concerns regarding tax payments, the construction company BI Group stated: “We responsibly declare that BI Group, as the largest taxpayer in the construction sector, diligently and fully fulfills all mandatory budget payments. Our tax contributions are regularly audited by authorized bodies, and no claims have been made following these audits. For the past 10 years, the company has undergone annual audits of its financial statements by independent international audit firms KPMG and Ernst & Young.”
BAZIS also provided a response: “The BAZIS Group of Companies has been operating in the construction market of Kazakhstan for over 30 years, making a significant contribution to the country's economic development. Throughout these years, we have remained one of the largest taxpayers in the construction industry, fulfilling all tax obligations in full and within the deadlines set by law,” and added: “We would also like to clarify that the presence of subsidiary companies within the BAZIS structure does not constitute a method of business fragmentation. This requirement is dictated by the Law on Shared Participation, which mandates the creation of a separate legal entity for each new residential construction project. This legal norm is established by Kazakhstan's legislation, and we strictly adhere to it.”