Text B.KAZAKHSTAN TRADE POLICY

Before independence 90 percent of Kazakhstan's trade was with Russia. After independence, the government committed itself to establishing the conditions for integration into the international market. These steps included price liberalization, through the reduction of subsidies and the deregulation of prices, as well as a balanced government budget through increases in taxes and cuts in government spending. The government also instituted a tight monetary policy through an increase in the Central Bank interest rate and encouraged foreign trade liberalization by lifting export and import licenses, granting permission to all firms to engage in foreign trade, and lifting tariffs. Kazakhstan also devalued the domestic currency to bring it down to the domestic market rate, and privatized and restructured state monopolies. The government sought to create a market environment through the legislative and regulatory reform of banking, capital markets, civil and contract law, and dispute adjudication. In order to cushion the social impact of these sweeping economic structural transformations, the government developed a social safety net. The Kazakh government has also pushed ahead with plans to join the World Trade Organization (WTO) in 2002.

The European Union remains to be one of the largest participants in the global economy and international trade. Close trade and economic ties were established between Kazakhstan and the European Union. The European Union is the main trade partner of the Republic of Kazakhstan. In 2016, trade with the EU member states accounted for 50% of the total external trade turnover of the country, whereas gross inflow of direct investments totaled $10.7 bln US dollars, which represented 52% of the total annual volume of investments attracted to the economy of Kazakhstan. The application of the new rules will not create unnecessary barriers to the bilateral trade between Kazakhstan and the EU.

The Enhanced Partnership and Cooperation Agreement signed between Kazakhstan and the EU provides deepening cooperation in such areas as investment, trade development, infrastructure, innovation, culture, tourism, law enforcement. The trade and investment component of the Agreement has provided European companies with favorable conditions for investing in Kazakhstan's economy, including strategic sectors such as subsoil use, transport infrastructure and services. One of the main objectives of the WTO is to ensure a stable and predictable trading space. The Trade Policy Review Mechanism is designed to assist WTO Members in achieving this goal by ensuring the transparency of trade policies of WTO member-states and assessing its impact on international trade in general.

Text C. TAXATION

On a certain day after the lecture on the UK taxation system the Group was to visit the Tax Department of a lawyers' firm in the centre of London. Mr. Brown and the participants went there by tube which is the fastest means of transport when one wishes to move in the centre of the city. After they got into the building of the firm they went to the secretary's office.

Mr. Brown: Good afternoon.

Secretary: Good afternoon, sir.

Mr. Brown: My name is Brown and here is the Group of busi­nessmen from Kazakhstan. We have got an appointment with Mr. White for three.

Secretary: Mr. White is waiting for you in the conference room. Follow me, please.

In the conference room a few Englishmen were waiting for the Group. Mr. White, Head of the Department, welcomed the Group and introduced his colleagues. They were solicitors and legal assistants of different offices. Each of them spoke about his scope of business for some time. Thus the participants had some information on com­mercial taxes, international taxes, Project Finance taxes and other taxation matters.

A lot of questions were asked and answered then. The discussion was very useful and informative. Before the participants left they were offered latest Tax Guides containing current tax rates and tax saving hints.

Here is an extract from the Guide:

CorporationTaxRates 2014

à Standardrate       33%

à Small companies rate (see the note) 25%

N o t e

Applicable if the company's total profits, including chargeable gains, are 300.000 pounds sterling or less. The threshold is re­duced if the company has associated companies.

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