The plant in Petropavlovsk was urged to pay a significant amount of taxes and fines, but the Chamber of Entrepreneurs intervened in the case
The Chamber of Entrepreneurs of North Kazakhstan region received a thank you letter from the manufacturer of electrical insulating materials LLP "Isolit". The company's representatives expressed their appreciation for the help and positive solution of the problem in the field of taxation. As a result of the concerted action of the employees of the Chamber the interests of the company amounting to more than 19 million tenge were protected.
The Department of State Revenue of NKR held a comprehensive tax audit of LLP "Isolit" for the period of operation from 1st of January 2011 to 31st of December 2015 and as a result sent a notice on accrual of additional CIT tax in the amount of 23,663 310 tenge, VAT - in the amount of 252 186 tenge, as well as accrued default interest in the amount of 499 thousand tenge. In addition, LLP "Isolit" was fined at 30% of the accumulated amount of taxes and other payments to the budget, which amounted to 7,098,993 tenge.
In July 2016 the representative of LLP "Isolit" has addressed with this issue to RCE of NKR with the proposal in court order to appeal the decision of the tax authorities, because such a significant additional taxation and penalties can cause great financial blow to the current plant. Having studied the materials of the case, the experts of RCE of NKR recommended the appeal the notice of SRC of NKR in pre-trial order by sending a complaint to a higher authority.
The experts of the Chamber examined and analyzed the accounting records of the enterprise, advising the management of LLP "Isolit" to address these gaps. As a result, the complaint was drawn up to the Ministry of Finance of the State Revenue Committee on the need to include depreciation and maintenance of fixed assets and tax benefits during commissioning of the production line in 2011in deductions for CIT.
The experts of NCE have joined to solve this problem, which represented the interests of LLP "Isolit" at the State Revenue Committee of MF RK.
In September 2016 representatives of LLP and NCE held a meeting to review the complaint at SRC. The company submitted additional materials to the SRC. Following the meeting, it was decided to conduct another tax audit. In December 2016 on the basis of another audit the amount of CIT decreased by 19,191,535 tenge.
LLP "Isolit" has a long history. The company for the production of electrical insulating materials in Petropavlovsk was founded in December 1941 on the basis of the evacuated factories in Moscow and the Moscow region, which later was named by the name of M. Kalinin. The company was one of the largest manufacturers of electrical products in the Soviet Union. On 9th of January 1992, despite a difficult time and the collapse of production, on the basis of the plant #1 of Petropavlovsk plant of electrical insulating materials named after M.I. Kalinin was created by a limited liability partnership "Isolit".