How can a businessman check a counterparty for reliability

It is proposed to introduce the concept of "due diligence" into the Tax Code of the Republic of Kazakhstan. This change will help the taxpayer when choosing a supplier and avoid unwanted transactions.

Currently, the use of cashless firms for the purpose of tax evasion remains an acute problem.

However, the Tax Code does not contain direct rules that allow excluding the costs of settlements with one-day firms without a verdict or invalidation of the transaction, which creates appeal disputes.

The presentation of such charges during the control also causes complaints from bona fide taxpayers who have suffered as a result of accidental relationships with unscrupulous counterparties.

All this was a prerequisite for the introduction of the principle of due diligence and the creation of an open integrated database for independent verification of counterparties.

The purpose of the "due diligence" principle is to increase the vigilance of entrepreneurs when choosing a counterparty and eradicate cashless companies.

Earlier, in 2019, the Head of State instructed the Government of the Republic of Kazakhstan, together with the National Chamber of Entrepreneurs "Atameken", to ensure the creation of an open integrated database on business entities, which will allow each entrepreneur to check his counterparty for reliability.

In pursuance of this instruction, the Government of the Republic of Kazakhstan, together with the National Chamber, carried out work aimed at creating an information system "Register of Business Partners".

Starting from July 01, 2021, entrepreneurs can check their potential counterparties on a free basis using the web link: https://kyc.kz

The basic report is formed on the basis of data from 34 open sources of information, including using information generated from the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan.

In addition, to date, lists of unreliable suppliers that are identified within the framework of tax control are posted and periodically updated on the official website of the SRC. The list for today is extensive, starting with those persons who were not found at the place of deployment according to registration data and ending with subjects whose state registration was invalidated by court decisions.

Due to the fact that in practice there are many cases when unscrupulous suppliers fail their partners, the measure taken has been implemented in order to prevent such transactions. Taxpayers are given the opportunity to check potential suppliers in advance using the electronic platforms of the authorized body.

This innovation is currently reflected in the draft amendments to the Tax Code of the Republic of Kazakhstan with the introduction of the concept of due diligence and will allow conscientious taxpayers to avoid unwanted transactions and their consequences within the framework of state control.