Kazakhstan Cracks Down on Cash Businesses: Transparency is Key

Tax Risks of Cash Transactions in Kazakhstan: A Growing Concern Kazakhstan is cracking down on informal business practices, particularly cash transactions that bypass official reporting systems. This comes after several high-profile cases involving government officials and business owners who failed to properly account for their income. "Many entrepreneurs try to operate 'in the black,' only taking cash payments and avoiding the cash register to 'save money,'" explains Gulnaz Teleuova, from the outsourcing accounting firm Buhconsult. However, this practice is increasingly risky. Teleuova highlights how tax authorities monitor business expenses, comparing them to declared income. Discrepancies lead to back taxes, penalties, and even account freezes. In severe cases, criminal charges can result. The video cites the recent example of a minister who couldn't account for 5 billion tenge, resulting in the government seizing the funds. This underscores the growing risks of informal transactions. The message is clear: transparency is crucial. "Only transparent accounting provides peace of mind," Teleuova states. The government's focus on risk management systems is making it easier to detect these violations, even without direct audits. While cash transactions are permissible, they must be processed through registered cash machines and data must be transmitted to the OFD (Operational Fiscal Data). The video concludes with a call for businesses to prioritize transparent accounting practices to protect their financial stability and avoid legal consequences.