Tax & Law Services
- About Our Global Tax Services
- Country Tax Advisory
- Cross Border Tax Advisory
- Global Trade
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For any company that does not have a large specialised legal department, compliance with legal formalities often involves significant difficulties arising from constantly changing legislation and practice. Along with that, accidental non-compliance with such legal and practical formalities may result in serious consequences for a company and its personnel, from significant material losses to criminal proceedings.
In this context, the gold standard for risk management is to attract an experienced and qualified legal adviser such as EY.
For 25 years on the Kazakhstan market, we have accumulated unique and varied experience in support of challenging Kazakhstan and international projects.
Our legal practice is recommended by the Legal 500 rankings (2014). We provide services across the legal spectrum, including:
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State authorities and non-governmental organisations also actively attract EY experts in law-making activities of Kazakhstan and the Eurasian Economic Union.
EY provides advisory services and support in the following range of legal issues:
- More than 20 lawyers in Almaty and Astana;
- More than 100 clients on labour matters from 2015 to 2017;
- More than 100 clients on corporate and commercial matters from 2015 to 2017;
- About 10 successful construction projects for 2016-2017
- More than 50 successfully completed termination agreements with dismissed employees;
- We have rendered advisory services to more than 80 clients on customs regulation and international trade from 2010 to 2017;
- EY practice on customs regulation and international trade in Kazakhstan is a leader in client portfolio and complexity of projects among BIG 4 companies and legal firms;
Membership in associations:
- American Chamber of Commerce
- Association of Taxpayers of Kazakhstan
- Alliance of Antimonopoly Experts
- European Business Association of Kazakhstan (EUROBAK)
- Kazakhstan Petroleum Lawyers Association
- “Kazakhstan Bar Association” Board of Commercial Lawyers
- National Chamber of Entrepreneurs
- Foreign Investors Council chaired by the President of the Republic of Kazakhstan
Commercial law: Case study 1
Issue: An international company with several branches in Kazakhstan was undertaking an internal restructuring in the form of merger, which resulted in a necessity to ensure transfer of taxpayer accounts, property, licenses and permits from branches that cease to exist as a result of merger to the successor's branch. It was necessary to ensure that tax and other state authorities applied reorganisation, not liquidation consequences.
Solution: We helped the client to prepare justification for application of reorganisation, and not liquidation consequences, to prepare letters, negotiate with key state authorities, and as a result, the company carried out reorganisation as it had been planned, and property, licenses and permits, as well as balances on taxpayer accounts were successfully transferred to the successor's branch.
Case study 2
Issue: A large international food company having presence in Kazakhstan in the form of a limited liability partnership addressed to us for transaction support in purchase of a land lot for construction of a plant in Kazakhstan and in obtaining investment incentives from the government.
Solution: We helped the client to prepare a draft agreement for purchase and sale of a land lot, represented client's interests in negotiations with prospective vendors. We advised the client on matters of obtaining investment incentives from the government, prepared and filed an application for conclusion of an investment contract with the required supporting documents, represented client's interests in negotiations with state authorities.
As a result, the client successfully entered into an investment contract with the government.
Labour law: Case study 1
Issue: A client addressed us with a request to help part with a chief executive, whose work did not satisfy the client, in a civilized manner. Dismissal of an employee, especially of a managing employee, is always associated with high risk in terms of civil lawsuits regarding wrongful dismissal and payment of leave of absence, moral harm, imposition of administrative charges and criminal liability, reputational risks and risks related to disclosure of confidential information.
Solution: We suggested the client to prepare all the documentation required for termination of employment agreement upon mutual agreement of the parties with compensation payment adequate to the position of the employee. Alternatively, we suggested to prepare the documentation package for termination on other grounds, less advantageous to the employee, with minimum statutorily required compensation. We helped the company to conduct negotiations with the employee, where he was informed of the company’s decision to stop employment relations. The negotiations were intense, but thanks to properly prepared documents, as well as promptness and expertise of our lawyers, they also were meaningful.
As a result, professional assistance of our lawyers allowed the company to:
- avoid lawsuit regarding employment reinstatement and wage payment for the period of forced unemployment;
- avoid administrative and criminal liability for breach of employment contract;
- avoid reputational risks and risks of disclosure of confidential information, also in case of hiring of a former employee by a competitive company;
- part with an employee in a civilized manner and on terms beneficial for both parties.
Case study 2
Issue: Due to transaction of business purchase and sale by an international company of another company, it became necessary to transfer all the employees of acquired business to the purchaser’s company. As permanent transfer from one company to another is impossible in Kazakhstan, it was necessary to terminate employment relations in one company, and to enter into new employment relations with the purchaser’s company. The company had to carry out this procedure in the shortest possible time due to necessity to ensure continuity of services delivery by the companies to their clients, and with the minimum risk in terms of labour legislation.
Solution: We helped the client to document transfer of employees in accordance with the requirements of labour legislation in the shortest possible time, and thus:
- to avoid lawsuits regarding employment reinstatement and wage payment for the period of forced unemployment;
- to avoid administrative and criminal liability for breach of employment contract;
- to ensure continuity of services delivery by the companies to their clients through proper planning of transfer process and its effective implementation.
Antimonopoly legislation: Case study 1
Issue: A client addressed us with a request to help receive consent of an antimonopoly agency in making a transaction of purchase and sale of stakes in the charter capital of a limited liability company carrying out the activities on the construction services market. In particular, according to the agreement of purchase and sale of stakes in the charter capital, transfer of the right of ownership with respect to stakes is carried out upon performance of contractual obligations by the parties, and upon receipt of consent of an antimonopoly agency.
Solution: We helped the client to prepare the required documentation package for the purpose of filing an application to an antimonopoly agency regarding granting of preliminary consent for economic concentration, which was received in the shortest possible time.
Case study 2
Issue: Due to contribution to the authorised capital of a Kazakhstan partnership by an international listed company, a client addressed to us for assistance in obtaining consent of an antimonopoly agency for economic concentration.
Solution: We helped the client to prepare the required documentation package for filing an application for granting of consent for economic concentration, regularly communicated with an antimonopoly agency in the course of hearing on the application and received a favourable answer
Case study 3
Issue: Necessity to comply with the requirements of antimonopoly legislation in conclusion and performance of transactions with respect to purchase and sale of companies, etc.
Solution: As part of our advisory services, we regularly provide our clients with the analysis of transactions for compliance with the requirements of antimonopoly legislation. Among other things, we caution clients about implications of non-compliance with the procedure for obtaining of consent or for notifying of an antimonopoly agency about economic concentration, about the required threshold levels and exceptions, review of agreements for exception of anticompetitive norms, abstention from participation in coordinated actions, undertaking of unfair competition, and abuse of dominance upon availability of substantial share in the market.
Other EY services in Tax and Legal section:
Guide to the recent developments in the legislation of the Republic of Kazakhstan. Read our January issues.