Kazakhstani MPs want Air Astana to register its aircraft in Kazakhstan
MPs from the Aq Jol political party have demanded Air Astana to register its aircraft in Kazakhstan, not in Ireland. According to MP Askar Sadykov, the registration of aircraft in a foreign jurisdiction looks like fiscal evasion.
«The Aq Jol fraction believes that the national air carrier should pay taxes in its home country. Otherwise, it looks like an attempt to implement the advice of an infamous official who recommended making money in Kazakhstan and spending it in London, if you know what I mean. Deoffshorization is a big problem for our national companies. Dear quasi-businessmen, have you no shame? You must pay taxes in the country where you receive huge salaries and bonuses. In this regard, the Democratic Party Aq Jol is demanding that the issue with registering Kazakhstani aircraft under the control of Air Astana and FlyArystan in Kazakhstan be solved,» Sadykov noted.
In 2013, Air Astana said that foreign registration of its aircraft (at the time Aruba, a self-governing part of the Netherlands) doesn’t affect the size of taxes the company pays in Kazakhstan.
«Registration of aircraft outside of Kazakhstan doesn’t affect tax revenue of the country’s budget because the airline pays the transport tax of $484,829 per year.»
The carrier also insists that registration in Aruba allows the company to maintain its aircraft under Western rules and standards, which is crucial for any company that wants to fly to those countries. At the time, many other Kazakhstani airlines didn’t possess such permission, according to Air Astana. The company also tried to defend itself, citing Russia where airlines used to register aircraft abroad, urging the government to keep customs benefits for imports of such planes.
However, in 2014, the Russian Auditing Chamber reported multiple rule violations as carriers imported planes to Russia under a temporary scheme and didn’t pay any customs fees. According to the chamber, the state budget didn’t receive about $1.6 billion in fees and VAT for leasing payments.
