Kazakhstan to amend legislation for preventing tax evasion - Tokayev

ALMATY. March 14 (Interfax) - Kazakh President Kassym-Jomart Tokayev has called for urgent changes to legislation to prevent the fragmentation of businesses for tax evasion purposes.

"There are various tax regimes in Kazakhstan, numerous benefits and preferences, they have created a semblance of an offshore tax in the country," Tokayev said in a speech to the National Kurultai on Friday.

He said two main groups of entrepreneurs had emerged in the country - those who have been able to use loopholes in the legislation to reduce their tax base, and those who conscientiously pay all taxes. "And the second group of entrepreneurs, of course, turned out to be less competitive," he said.

The president said that the government was right to pay attention to such a phenomenon as the fragmentation of companies for the purpose of tax evasion.

"Unfortunately, this happens all the time. It is necessary to admit that the fragmentation of companies is the result of omissions in legislation; this issue has not been sufficiently worked out both by the government and the deputies," the president is quoted as saying by the press service.

"The situation needs to be rectified as a matter of urgency. This is my appeal to the government and parliament - the necessary amendments to the legislation should be made immediately," Tokayev said.