According to information provided by tax authorities, the extent of concealing income is enormous. The Tax Department in Almaty has announced preliminary results of the struggle with the so -called “gray” wages – wages “in envelopes”. This was reported by the press service of the department to Kapital.kz to business portal. 

The extent of concealing income of workers by “adventurous” employers is colossal. Only for the period of 9 months of the year 2013, the amount of additional taxes on hidden wages for 190 taxpayers was ​​more than 335 million Tenge. It is 3.3 billion Tenge of hidden payroll as one says in the tax department. 

“The main problem of the use of so-called “gray” schemes is that they do not guarantee legal protection in the event of violations of the law, by both an employee and an employer.

At dismissal, reduction or payment of sick leave, an employee can rely on only a small amount provided for by the employment contract”, a report states.

Tax officials emphasized that the work on the identification of “gray” wages will continue.

In addition, the tax department of Almaty reports that since the beginning of 2013 one has completed 1 thousand 113 integrated and thematic inspections, due to which the budget was credited with an additional amount of 16.8 billion Tenge. To date, one has collected 7.4 billion Tenge. The principal amounts of additional charges fall on taxpayers working in the construction industry, services and trade.

To minimize taxable income companies illegally inflate costs that are not related to their ongoing business activities. In addition to deductions for corporate income tax and deduction of VAT, one refers costs without supporting accounting documents. 

Source: Business Portal Kapital.kz.