Kazakhstan Kagazy PLC
Kazakhstan Kagazy PLC: 7 tax inspections of Kazakhstan Kagazy Group companies cancelled by Presidential Decree

Kazakhstan Kagazy PLC  / Miscellaneous

07.04.2014 13:35

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PRESS RELEASE

7 tax inspections of Kazakhstan Kagazy Group companies cancelled by
Presidential Decree

Almaty, April 7, 2014. Tax inspections of seven Kazakhstan Kagazy ('KK')
Group companies have been cancelled with effect from the 3rd of April this
year. No wrongdoing has been found on the part of any of the companies.

The relevant KK Group companies are: Kagazy Investments JSC, Kazakhstan
Kagazy JSC, Astana-Contract JSC, Prime Estate Activities Kazakhstan LLP,
РЕАК Logistics LLP, РЕАК Akzhal LLP and Kagazy Trading LLP.

The inspections were stopped in accordance with the Decree of the RK
President N. A. Nazarbayev 'On cardinal measures of improving conditions
for enhanced business development' (Order No. 757 dated February 27, 2014).
In accordance with the presidential decree, effective from April 2 this
year, the government announced a moratorium on inspections of small and
medium-sized businesses.

The CEO of Kazakhstan Kagazy PLC (the 'Company'), Mr Tomas Mateos Werner,
commented: 'We welcome this action by the government to reduce the
administrative pressure on businesses in Kazakhstan, and express our deep
appreciation and gratitude to President Nursultan Nazarbayev for the
opportunity to pursue the sustainable and steady development of the
Company's business. Kazakhstan Kagazy has been and will remain a
law-abiding tax payer. We further intend to play an active part in the
implementation of the President's 'Kazakhstan - 2050' Strategy.

Mass inspections of Kazakhstan Kagazy were initiated in the course of
criminal investigations instigated against KK Group companies in October
2013 by the prosecutor's office of Almaty oblast, on the basis of alleged
tax evasion. These investigations were commenced shortly after the High
Court of London maintained a freezing injunction of GBP72m (approximately
$100m) against the assets of the Company's former shareholders, whom the KK
Group alleges fraudulently misappropriated the Group's funds.

The Company has at all times declared that these criminal proceedings were
not only groundless, but had been instigated with  multiple violations of
Kazakh legislation. Most notably, the inspections were commenced without
any supporting evidence that KK Group companies had evaded taxes.

The KK Group conducts its business activities in accordance with the laws
of the Republic of Kazakhstan and follows IFRS financial reporting
requirements. Furthermore, the Group's annual consolidated accounts have
been audited by PricewaterhouseCoopers since 2010.


 




Contact:
PRESS OFFICE OF KAZAKHSTAN KAGAZY JSC
Tel. +7 727 244 87 87



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Language:           English
Company:            Kazakhstan Kagazy PLC
                    33-37 Athol Street
                    IM1 1LB Douglas
                    Isle of Man
Phone:              +7-727-244-87-87
Fax:                +7-727-244-87-82
E-mail:             ir@kagazy.kz
Internet:           www.kazakhstankagazy.com
ISIN:               US48667M2035
Listed:             London
Category Code:      MSC
TIDM:               KAG
Sequence Number:    1981
Time of Receipt:    Apr 07, 2014 13:35:03
 
End of Announcement                       EquityStory.RS, LLC News-Service
 
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