The Ministry of Economy has proposed new fines for civil servants and other individuals for failure to submit income declarations — Tazabek

Tazabek — The Ministry of Economy has proposed new fines for civil servants and other individuals for failure to submit income declarations. The norm is contained in a package of amendments to tax legislation.

On September 23, the Cabinet of Ministers submitted a bill to the Jogorku Kenesh for consideration.

The Ministry of Economy has developed amendments to supplement Article 438 of the Code of Offenses of the Kyrgyz Republic, which regulates the amount of fines for failure to submit declarations or improper submission of property and income declarations by state or municipal employees.

In the current version of the article, there are two types of fines:

— failure by state or municipal employees to submit a declaration of property and income within the prescribed period entails a fine on individuals and officials in the amount of 30 calculated indices (3 thousand soms — approx.);

— provision by state or municipal employees of a declaration of property and income with unreliable or incomplete information entails a fine on individuals and officials in the amount of 50 calculated indices (5 thousand soms).

The Ministry of Economy proposed introducing a third type of fine under Article 438 for repeated violation (failure to provide or incomplete provision of a declaration) and failure to eliminate violations in the amount of 100 calculated indicators (10 thousand soms).

The ministry itself also explains that in the current two types of fines, liability is provided only for civil servants, and therefore it is proposed to extend the effect of the article to other individuals who are required to file a declaration.

In the current Tax Code, the categories of individuals required to submit declarations to the Tax Service are listed in two articles: 106 and 107.

According to Article 106, individual entrepreneurs are required to submit a declaration (except for those who work in trade zones with a special regime, on a patent, or on a single tax at rates of 0%, 0.1 and 0.5%)a citizen of the Kyrgyz Republic who received income from working in diplomatic missions and consular offices of foreign states, international organizations or their representative offices in the Kyrgyz Republic; an individual who has received taxable income from an entity that is not a tax agent or who does not have an obligation as a tax agent.

According to Article 107, the declaration is required to be submitted by:

1) a person holding or holding a political or special government position;

2) a person holding or holding an administrative public position;

3) law enforcement officers, diplomatic services and military personnel, with the exception of military personnel undergoing compulsory military service, cadets, students of higher military educational institutions and military personnel, law enforcement officers whose activities are related to a secret nature;

4) a person holding or holding political and administrative municipal positions;

5) chairman, deputy chairman, member of the board of the National Bank;

6) member of the Central Commission for Elections and Referendums of the Kyrgyz Republic;

7) member of the Council for Justice of the Kyrgyz Republic;

8) head, deputy head of institutions, enterprises or organizations with state participation.