The use of fictitious invoices will be subject to 100 percent penalties. The head of the Tax Service of Kyrgyzstan, Almambet Shykmamatov, said at a meeting with representatives of the construction industry.
According to him, changes to legislation, including those in the area of public procurement, must be considered holistically.
Previously, Almambet Shykmamatov instructed the preparation of a package of amendments to ensure that entrepreneurs operating under the single tax system do not face restrictions when participating in procurement. On the contrary, the possibility of expanding their access to such procedures is being considered.
Separately, the head of the State Tax Service addressed the issue of fictitious invoices. He noted that the Tax Service’s digital systems now allow for the early detection of such schemes.
If goods appear «out of nowhere» and non-commodity deliveries are processed, such invoices are immediately cancelled, and then we trace the ultimate beneficiary.
Almambet Shykmamatov
According to him, tax authorities previously tried to hold formal companies and front men accountable. However, now the focus is on who benefits from the schemes. In such cases, the penalty is 100 percent of the amount of the violation.
The head of the State Tax Service warned that identifying such transactions is a matter of time: audits could begin within a few months of the dubious transactions being reported.
He announced that a meeting with representatives of cadastral authorities is scheduled for the same day to further discuss the issues raised by businesses.
