VAT Evasion Schemes by Microfinance Organizations Uncovered: 55.9 Billion Tenge Hidden Turnover Detected

• Microfinance organizations (MFOs) used tax evasion schemes to avoid paying VAT by disguising paid loan extension services as financial “guarantees” exempt from VAT.
• Audits of four MFOs uncovered hidden transactions totaling 55.9 billion tenge, resulting in 6.1 billion tenge in unpaid VAT; courts upheld the additional tax assessments.
• The “guarantees” were limited in scope and duration, matching loan extension periods, proving they were not genuine guarantees.
• Income from these services was not taxed, despite VAT exemption applying only to actual loan issuance.
• Similar schemes were found in insurance agency operations involving 26 billion tenge.

Source: uchet.kz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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