Tax control will be conducted before the bankruptcy is recognised. The Ministry of Economy has proposed amendments to the Tax Code.

The draft law submitted for consideration provides for amendments to the Kyrgyz Tax Code regarding tax audits of debtors before their recognition or declaration of bankruptcy. These measures are aimed to improve the process of tax administration and reveal the facts of debtors' solvency before a court decision is made.

In particular, the amendments will affect Article 117 of the Tax Code, which previously provided unscheduled inspections only after an organisation or individual entrepreneur was declared bankrupt.

‘Conducting tax control before a debtor is recognised as bankrupt will make it possible to analyse all documents relevant for taxation, to identify facts of solvency of a debtor against whom a judicial decision is made,’ the Ministry of Economic Affairs said.

In addition, the amendments will affect Article 79 of the Tax Code, to which will be added provisions regulating the completion of bankruptcy proceedings through the liquidation of a taxpayer within a special administration. It is also proposed to amend Article 119 of the Tax Code concerning the terms of decision-making and carrying out unscheduled tax inspections by the Tax Service authorities, accounting the need to accelerate these procedures.