Categorization is an effective system of business improvement in Kazakhstan
The system of categorization of entrepreneurs has been operating in Kazakhstan since 2018. It is aimed at encouraging taxpayers to comply with tax discipline and build relationships with potential partners. The system works in automatic mode, taking into account the tax reporting forms submitted by the sole proprietor or LLP, taxes paid and the use of digital technologies in its activities.
Thus, the main criteria for determining the degree of risk are the tax burden, the correct reflection of employees, the presence of transactions with unreliable(inactive, absent at the place of registration, etc.) enterprises. Also, the participation of the sole proprietor or LLP in the issue of the electronic invoice, the use of online cash register and other indicators are taken into account. After assigning the degree of risk, information about this is sent to the Taxpayer's Webroom for timely information.
The results of categorization of the Risk Management System (RMS) are also published on the website of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan and updated once every six months (January 1 and July 1). Any company has access to statistical data for risk assessment of potential partners. However, the results of categorization do not prohibit the company's participation in public procurement and other competitions.
According to the latest published RMS information , to date, out of 1.7 million registered sole proprietors and LLP, 48% of enterprises have a low and medium degree of risk and only 2% with a high degree of risk.
Thus, one of the examples was the Abai Garment Factory (Stitch LLP), which in the 1st half of this year had an average degree of risk, but according to the results of automatic monitoring of the submitted declaration, it passed into the category of enterprises with a high degree.
The head and founder of the LLP registered it in the Abai district of the Karaganda region.
This enterprise is classified as a high risk according to the following criteria:
- the number of employees is not indicated in the tax reports, whereas in all social networks and video portals, frames of sewing workshops are shown, and the entrepreneur himself indicates production areas of 18,000 sq.m.;
- also, in all tax reporting over the past three years, the unprofitability of the enterprise is noted, which corresponds to the criterion of the RMS "Reflection of losses in tax reporting over several tax periods";
- there were cases when the next TNF 100.00 was presented with zero values, and after that additional reporting with adjustments was provided.
- another LLP has been registered in the name of the head and founder, which has been recognized as inactive since 20.04.2018.
Based on all these criteria, the automated risk management system attributed this LLP to a high degree of risk. However, we note that this taxpayer has no restrictions for participation in public procurement.
It should be noted that at the initiative of the entrepreneur, a meeting was held with representatives of the SRC and the Ministry of Finance of the Republic of Kazakhstan at the Adaldyq Alan'y site, where the reasons for this categorization were explained to him and some measures were proposed that could change his degree of risk within 15 days.
In particular, he was asked to reflect the real number of employees, which would lead to adequate payment of taxes and submit additional forms of tax reporting for the last year.
The entrepreneur himself agreed with the arguments of the state revenue authorities, but no further action was taken on his part.
In case of further ignoring of the proposals and comments of the state revenue bodies, Stitch LLP will be treated as a high risk until the next update of the RMS based on the results of the submission of the next tax reporting (January 1, 2022).