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Pseudo-entrepreneurship hinders business

- Kyzylorda Region
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90 percent of construction companies in Kyzylorda region are on the verge of bankruptcy because of pseudo-entrepreneurship

This was stated by local businessmen at a meeting with the Ombudsman for the Protection of the Rights of Entrepreneurs of Kazakhstan Bolat Palymbetov during a working visit to Kyzylorda region.

According to businessmen, at the fault of false companies suffer conscientious representatives of the regional business. For example, as it was told by the lawyer of LLP "Abzal and K", "despite the fact that the company timely pays taxes, fulfills its all obligations to employees and customers, it is faced with the problem of pseudo-entrepreneurship".

"All relevant documents, invoices, payment documents are compiled during the civil law relations with entrepreneurs. However, after some time public revenue department notifies us that we were dealing with pseudo-entrepreneur then we are prosecuted. This, in turn, results in considerable losses of the company", - he said.

As it was noted by the chairman of the Association of Builders of Kyzylorda region Manarbek Espenbetov, the vast majority of construction companies in the region is faced with this problem.

"90 percent of construction companies in Kyzylorda region are on the verge of bankruptcy because of pseudo-entrepreneurship. For cooperation with pseudo entrepreneurs they are forced to pay huge additional charges in the amount of 20-40 million tenge up to 350 million tenge. And, sadly, under current legislation, the specialists of tax authorities bring the case to the court, where entrepreneurs simply can’t prove their innocence. Russian businessmen faced with such a problem. However, they introduced in time the appropriate changes and additions to the law, as a result of which bona fide businessmen can protect their rights. If we do not take appropriate measures, tomorrow businessmen not only from Kyzylorda, but also from other regions of the country will face these difficulties", - said Manarbek Espenbetov.

In turn, the Business Ombudsman Bolat Palymbetov noted that this is a common problem of Kazakhstani businessmen.

"This is a very difficult situation. At the moment, this problem is relevant for all regions. Because one pseudo-entrepreneur dozens of companies are closed, which conscientiously perform their duties. In many cases, the entrepreneur learns only after the court decision that he should make additional payments, since the court may rule out such a decision in absentia, without the knowledge of the defendant. In my opinion, all tax disputes should be settled before the court", - concluded Bolat Palymbetov, positively assessing the work of the local competent authorities in this area.

In particular, the Business Ombudsman and representatives of the National Chamber of Entrepreneurs "Atameken" noted the timely and efficient work of interdepartmental staff for countering pseudo-entrepreneurship under the regional prosecutor's office, which consisted of experts of the Chamber of entrepreneurs. He also proposed to apply the practice of Kyzylorda in all regions of the country.

Summing up the meeting, the Commissioner for the Protection of the Rights of Entrepreneurs of Kazakhstan Bolat Palymbetov stressed that all the raised business issues at the meeting will be discussed further.


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