Kazakhstan Targets Tax Evasion Schemes: New Crackdown on Business Splitting

Kazakhstan Cracks Down on Business Splitting for Tax Evasion Kazakhstan is intensifying its efforts to combat tax evasion through business splitting. According to A. Amrin, Vice Minister of National Economy, two primary methods are employed. Large companies split to reduce their corporate income tax burden, while individual entrepreneurs divide their operations to avoid Value Added Tax (VAT) registration. Amrin stated, "Businesses themselves know when they are splitting; the question is how to determine if the structure constitutes artificial splitting from the perspective of tax authorities." Tax authorities focus on several key indicators to identify artificial splitting. These include identical business activities across multiple entities, shared resources like offices or equipment, and the involvement of related parties. The government is increasing control, making previously successful schemes less viable. Amrin highlighted the importance of considering the totality of these indicators rather than focusing on individual elements. The increased scrutiny reflects the government's determination to ensure fair tax collection and level the playing field for all businesses.